Category: Technology

Getty Images and Shutterstock Merge: A $3.7 Billion Visual Content Powerhouse Takes Shape

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Historic merger combines two largest stock photo platforms amid AI disruption
– Deal values Shutterstock shares at $28.85 in cash or 13.67 Getty shares
– Combined company aims to counter industry challenges from AI and smartphone photography

In a landmark move that reshapes the visual content industry, Getty Images Holdings Inc. has announced its acquisition of rival Shutterstock Inc., creating a combined entity valued at approximately $3.7 billion including debt. The merger brings together two of the world’s leading providers of licensed visual content at a critical time when artificial intelligence and smartphone photography are transforming the industry landscape.

Under the terms of the agreement, Getty Images will offer Shutterstock shareholders either $28.85 in cash or approximately 13.67 Getty Images shares for each Shutterstock share, with an option for a mixed payment. The transaction structure will result in Getty Images stakeholders owning 54.7% of the combined company, while Shutterstock shareholders will control the remaining portion.

The timing of this merger reflects the significant challenges facing the stock photo industry. Both companies have experienced substantial market value declines since mid-2022, with Getty Images down 73% and Shutterstock falling 50%. This consolidation represents a strategic response to evolving market dynamics, particularly the rising influence of AI in content creation and the democratization of photography through mobile devices.

The merged entity will combine Getty Images’ extensive library of premium content with Shutterstock’s robust contributor platform and search capabilities. Craig Peters, Getty Images’ current CEO, will lead the combined company, focusing on leveraging synergies and expanding service offerings to media, advertising, and content creation industries.

This strategic consolidation promises significant cost-cutting opportunities and the potential for enhanced profitability through a broader service portfolio. However, the deal faces potential regulatory scrutiny, particularly as it comes during a presidential transition period. The merger will test the incoming Trump administration’s approach to antitrust oversight, especially following the Biden administration’s strict stance on industry consolidation.

The deal also represents a significant milestone in Getty Images’ corporate evolution. Founded in 1995 by Mark Getty, the company has undergone various ownership changes, including private equity ownership under Hellman & Friedman and Carlyle Group, before the Getty family regained control in 2018. The merger with Shutterstock marks its latest transformation in adapting to the changing digital landscape.

Financial advisers JPMorgan Chase, Berenson & Co., and Allen & Co. have facilitated the transaction, underlining the deal’s significance in the digital content marketplace. The merger is expected to create a more resilient entity better positioned to navigate the challenges posed by technological disruption and changing consumer behavior in the visual content industry.

Unity Software Stock Jumps After ‘Roaring Kitty’ Shares Cryptic Post on Social Media

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Unity Software shares surged nearly 10% after a cryptic post by Keith Gill, known as “Roaring Kitty,” on X.
– The post referenced a Rick James song titled “Unity,” which sparked enthusiasm among meme stock traders.
– Unity’s stock had fallen 45% in 2024 due to controversies, including the “runtime fee” and significant layoffs, but gained $700 million in market value after the surge.

Unity Software (U) saw its stock surge by nearly 10% on Thursday following a cryptic post by Keith Gill, better known as “Roaring Kitty,” on social media platform X. The post, which featured a brief clip of late musician Rick James, sparked enthusiasm among investors and prompted a surge in Unity’s stock price, pushing it as high as $26 on the first trading day of 2025.

Keith Gill’s social media presence has a history of influencing stock prices, as he became widely known during the 2021 meme stock frenzy that led to GameStop’s meteoric rise. Gill, who became a symbol for retail investors during the rally, has since been linked to stock movements that draw the attention of meme stock enthusiasts. His latest post, which referenced a Rick James song titled “Unity,” appears to have reignited similar enthusiasm, particularly among retail investors who tend to follow meme stock trends.

This surge comes at a critical time for Unity Software, which faced a tough year in 2024. The company’s shares fell by nearly 45% last year, following the backlash over its controversial “runtime fee” policy introduced in 2023. The backlash was so severe that Unity had to scrap the pricing model by 2024. Despite this, Unity remains an essential tool for millions of game developers worldwide, powering popular titles like “Pokemon Go,” “Beat Saber,” and “Hearthstone.”

Unity’s challenges were compounded by its decision to lay off about 25% of its workforce in 2024, following 8% job cuts in 2023. These measures were part of Unity’s efforts to focus on profitability amid a difficult market. Yet, the excitement generated by Gill’s post demonstrates the volatility of Unity’s stock and the power of social media in driving investor sentiment.

As Unity gains nearly $700 million in market value from Thursday’s trading gains, industry experts note the role that social media has in shaping stock movements. Art Hogan, chief market strategist at B. Riley Wealth, commented, “The leader of the meme stock post on social media, whether it’s Reddit or X, you’re certainly going to see that reaction by that small army of meme stock players — that’s what we’re seeing again today.” Hogan’s remarks highlight how social media trends continue to impact the stock market, particularly with stocks like Unity, which are viewed as volatile but promising.

Despite the excitement, some industry professionals are wary of the impact of meme stock trading. Thomas Hayes, chairman of Great Hill Capital LLC, cautioned against following trends driven by online communities, saying, “You would think people would have learned by now that playing these silly reindeer games ends in tears … it’s not the way to invest.” Hayes’ remarks reflect concerns about the sustainability of meme stock movements, which are often fueled by speculation rather than fundamentals.

Unity Software’s stock surge is a reminder of the unpredictable nature of meme stock trading, where social media influencers can significantly impact stock prices. While the company’s long-term outlook remains uncertain, Thursday’s surge offers a brief moment of optimism for investors following a challenging year.

Chinese Hackers Breach U.S. Treasury in Major Cybersecurity Incident

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Chinese state-sponsored hackers accessed Treasury desktops via compromised third-party software.
– Multi-agency efforts are underway to assess the breach and mitigate its impact.
– The incident underscores the urgent need for strengthened cybersecurity in federal agencies.

The U.S. Treasury Department has confirmed a major cybersecurity breach attributed to a state-sponsored Chinese hacking group. The attack leveraged vulnerabilities in third-party software, BeyondTrust, enabling unauthorized access to the desktop computers of Treasury employees and compromising unclassified documents. Treasury officials, along with federal agencies, are actively investigating the incident to assess its full impact and prevent future breaches.

The breach was first reported to the Treasury Department on December 8, when BeyondTrust informed the department that the hackers had exploited a cryptographic key securing a cloud-based service used for remote technical support. This unauthorized access allowed the attackers to bypass security protocols and infiltrate user workstations within the Treasury’s Departmental Offices.

In a letter addressed to Senators Sherrod Brown and Tim Scott, Aditi Hardikar, Assistant Secretary for Management at the Treasury Department, outlined the timeline and scope of the breach. While the accessed information was unclassified, the incident has raised alarms about vulnerabilities in government cybersecurity measures, especially given the sensitive nature of Treasury operations.

China has denied the allegations, with Ministry of Foreign Affairs spokesperson Mao Ning asserting that the claims are politically motivated and lack evidence. “China consistently opposes all forms of hacking and is firmly against the spread of false information targeting China for political purposes,” Ning stated during a press briefing.

The Treasury Department is collaborating with the Cybersecurity and Infrastructure Security Agency (CISA), the FBI, and other intelligence agencies to evaluate the breach. Third-party forensic investigators are also involved in determining the overall impact and addressing potential vulnerabilities. According to Treasury officials, the compromised BeyondTrust service has been deactivated, and there is no evidence that the attackers retain access to Treasury systems or data.

This incident highlights the persistent threat of cyberattacks targeting government agencies. Over the past four years, the Treasury Department has enhanced its cybersecurity defenses, yet this breach underscores the evolving tactics of state-sponsored hackers. Treasury officials emphasized their commitment to working with public and private sector partners to safeguard critical financial infrastructure from cyber threats.

The breach has also reignited discussions on the broader implications of state-sponsored cyber activities and the need for robust international cooperation to address such threats. In response to the incident, the Treasury Department has pledged to release a supplemental report within 30 days, providing additional details on the breach and steps taken to mitigate future risks.

As cybersecurity threats become increasingly sophisticated, this incident serves as a stark reminder of the critical importance of securing digital systems in both public and private sectors. The U.S. government’s response to this breach will likely influence ongoing efforts to strengthen national cybersecurity protocols and protect sensitive data from malicious actors.

Bit Digital (BTBT) – A Tier-3 Data Center Site Acquired

Posted on by slightbourne@noblecapitalmarkets.com


Tuesday, December 31, 2024

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

New Site. Yesterday, Bit Digital announced the acquisition of real estate and a building for a “build-to-suit” 5MW Tier-3 data center in Montreal, Canada. The 160,000 square feet site was purchased for CAD $33.5 million (or $23.3 million assuming a CAD/USD exchange rate of 0.70) and closed on December 27, 2024. The Company funded the purchase with cash on hand and is in the process of securing mortgage financing for the site acquisition and subsequent infrastructure capex. A new customer is expected to fill the capacity with new-generation Nvidia GPUs.

Building the Site Up. Bit Digital expects to spend roughly CAD $27.6 million (or $19.3 million) to develop the site to meet Tier-3 standards. The initial gross load for the site is at 5MW, which has the potential to expand, allowing scalability by market demand. In our view, the potential allows for the expansion of an owned site with an average cost per MW of $8 million, below market rates. Development is expected to be completed and operational by May 2025.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Nvidia Finalizes $700 Million Acquisition of AI Firm Run:ai

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Nvidia’s $700 million acquisition of Run:ai was approved by the European Commission after addressing antitrust concerns.
– Run:ai plans to open-source its AI optimization software, expanding its use beyond Nvidia GPUs.
– The deal strengthens Nvidia’s position as a leader in AI technologies amid growing regulatory scrutiny.

Nvidia’s recent acquisition of Israeli AI firm Run:ai marks a significant milestone in the tech industry. The $700 million deal, finalized after regulatory scrutiny, underscores Nvidia’s strategic focus on AI infrastructure optimization. Run:ai, known for its innovative solutions in AI development, is set to amplify Nvidia’s dominance in the AI graphics processing unit (GPU) market.

The acquisition, announced in April, faced hurdles from regulatory authorities on both sides of the Atlantic. The European Commission granted unconditional approval earlier this month, following an investigation into potential antitrust concerns. Regulators initially expressed fears that the deal might stifle competition in markets where Nvidia and Run:ai operate. Nvidia, which commands approximately 80% of the market share for AI GPUs, has long been a pivotal player in the sector. However, the Commission concluded that the acquisition would not harm competition, allowing the deal to proceed.

Run:ai specializes in software that helps developers optimize AI infrastructure, making it an appealing addition to Nvidia’s portfolio. In a blog post following the acquisition, Run:ai announced plans to make its software open-source. While the software currently supports only Nvidia GPUs, the open-sourcing initiative aims to broaden its reach to the entire AI ecosystem. This move aligns with Nvidia’s vision of fostering innovation while addressing concerns about market dominance.

The U.S. Department of Justice is also scrutinizing the acquisition on antitrust grounds, reflecting a broader trend of heightened regulatory oversight of tech giants. In August, reports surfaced that the Department of Justice had launched a probe into the deal, focusing on its potential implications for competition. This increased scrutiny comes amid growing concerns that large tech companies may use acquisitions to eliminate potential rivals, thereby consolidating their market power.

Despite these challenges, the acquisition reflects Nvidia’s commitment to advancing AI technologies and infrastructure. The company’s GPUs are integral to AI-linked tasks, powering innovations across industries from healthcare to autonomous vehicles. By integrating Run:ai’s expertise, Nvidia aims to enhance its ability to deliver cutting-edge solutions to its customers.

The deal also highlights the dynamic nature of the AI market, where rapid advancements necessitate strategic partnerships and acquisitions. Run:ai’s capabilities in optimizing AI workloads complement Nvidia’s hardware dominance, creating synergies that could accelerate progress in the field. As the demand for AI applications continues to grow, Nvidia’s strategic investments position it to remain at the forefront of the industry.

Regulatory scrutiny of tech acquisitions has intensified in recent years, with authorities seeking to prevent market monopolization. Nvidia’s successful navigation of these challenges in the Run:ai deal demonstrates its ability to adapt to the evolving regulatory landscape. The European Commission’s approval, in particular, sets a precedent for future acquisitions, emphasizing the importance of thorough evaluations to balance innovation with fair competition.

Nvidia’s acquisition of Run:ai signifies more than just an expansion of its capabilities; it represents a pivotal moment in the AI sector. By addressing regulatory concerns and committing to open-source initiatives, Nvidia is shaping the future of AI development. This acquisition not only solidifies Nvidia’s leadership in the AI GPU market but also reinforces its role as a catalyst for innovation in a rapidly evolving industry.

Perfect (PERF) – Turning on the Acquisition Engine

Posted on by slightbourne@noblecapitalmarkets.com


Thursday, December 26, 2024

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Acquisition of Wannaby. On December 24, the company announced that it has entered into an agreement to acquire Wannaby from Fartech, a British e-commerce company. Wannaby is a virtual try-on technology operation that focuses on shoes and accessories, such as handbags. The addition of Wannaby’s technology is set to expand Perfect’s suite of virtual try-on capabilities. 

Expanding service offering. The addition of Wannaby’s virtual try-on capabilities should open new revenue verticals. It also allows the company to provide a more all-encompassing suite of virtual try-on services to existing and perspective brand clients. We believe this will bolster the company’s competitive position and could lead to higher B2B contract values and enhanced revenue growth. 


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – Perfect Corp. Acquires Fashion Tech Innovator Wannaby, Expanding Its Virtual Try-On Offering and Coverage in Luxury Fashion

Posted on by aweinsoff@channelchek.com

Research News and Market Data on PERF

December 23, 2024

The acquisition enables Perfect Corp. to extend its innovative technology into shoes, bags, and other fashion categories, leveraging strategic synergies with the fashion sector

NEW YORK–(BUSINESS WIRE)– Perfect Corp. (NYSE: PERF), a global leader in beauty and fashion tech solutions, today announced it has entered into an agreement with Farfetch, a leading global marketplace for the luxury fashion industry, to acquire Wannaby Inc., a digital immersive experiences expert. This acquisition represents a significant milestone in integrating advanced technology, enabling Perfect Corp. to expand its offerings into new luxury market segments, including shoes, bags, and apparel.

Wannaby, known for its virtual try-on technology and digitalization solutions for the fashion industry, has served over 30 top-tier luxury brands. By integrating Wannaby’s innovative solutions with Perfect Corp.’s state-of-the-art beauty tech solutions, the company is set to redefine the digital experience in the fashion and beauty sectors. This strategic move expands Perfect Corp.’s capabilities and solidifies its position as a technology leader in the luxury fashion domain.

Alice Chang, Founder and CEO of Perfect Corp., commented, “By welcoming Wannaby’s capabilities into our portfolio, we are poised to enrich our digital solutions and reinforce our presence in the fashion tech landscape. This expansion into new fashion categories such as shoes and bags demonstrates our commitment to innovation and our ability to deliver exceptional value to clients across diverse sectors.”

This acquisition also marks the beginning of a collaborative relationship between Perfect Corp. and Farfetch. After the acquisition, Farfetch will continue to utilize Wannaby’s solutions to enhance the digital shopping experience, reflecting a shared vision for the future of fashion technology.

The acquisition is expected to be finalized in the coming months, subject to customary closing conditions.

About Perfect Corp.

Perfect Corp is a leading provider of AI and AR technology solutions for the beauty and fashion industries. The company is known for its cutting-edge virtual try-on solutions and beauty diagnostics to millions of users worldwide. Perfect Corp’s technology powers the digital transformation of global beauty brands, offering innovative tools that enhance the online shopping experience.

About Wannaby

Wannaby is a pioneer in augmented reality and computer vision technologies, specializing in virtual try-on solutions for the fashion industry. The company’s platform enables consumers to see how products like shoes and accessories look on them in real-time, revolutionizing the online shopping experience for fashion retailers around the world.

Disclaimers and Forward-Looking Statements

This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy securities. This communication contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on beliefs and assumptions and on information currently available to Perfect. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Any statements that refer to expectations, projections or other characterizations of future events or circumstances, including the anticipated completion of the acquisition and its expected benefits, are also forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These statements are based on Perfect’s reasonable expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Perfect’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Perfect to predict these events or how they may affect Perfect. In addition, risks and uncertainties are described in Perfect’s filings with the Securities and Exchange Commission. These filings may identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Perfect cannot assure you that the forward-looking statements in this communication will prove to be accurate. There may be additional risks that Perfect presently does not know or that Perfect currently does not believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by Perfect, its directors, officers or employees or any other person that Perfect will achieve its objectives and plans in any specified time frame, or at all. Except as required by applicable law, Perfect does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date of this communication. You should, therefore, not rely on these forward-looking statements as representing the views of Perfect as of any date subsequent to the date of this communication.

Perfect Corp Media Relations :
Tony Tsai at press@perfectcorp.com
Website: www.perfectcorp.com

Perfect Corp Investor Relations:
Email: Investor_Relations@PerfectCorp.com

Farfetch Media Relations :
Email: press@farfetch.com
Website: www.farfetch.com

Source: Perfect Corp.

Xerox Acquires Lexmark in $1.5 Billion Deal to Reclaim Market Leadership

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Xerox acquires Lexmark for $1.5 billion, bringing the printer and software maker back under U.S. ownership.
– The deal enhances Xerox’s global scale, with a combined client base of 200,000 across 170 countries.
– Xerox reduces its dividend to fund the acquisition, aiming to close the transaction by late 2025.

Xerox (NASDAQ: XRX), a global leader in office equipment, has announced its acquisition of Lexmark International in a $1.5 billion deal. The purchase brings Lexmark, previously owned by a consortium of Chinese investors, back under U.S. ownership. This strategic acquisition aims to bolster Xerox’s core business and expand its reach in the competitive global printing market.

Lexmark, formed from IBM in 1991, was sold to Chinese investors in 2016 for $3.6 billion. This acquisition by Xerox not only returns the printer and software maker to American hands but also strengthens Xerox’s ability to compete in a rapidly evolving market. With five consecutive quarters of declining revenue and increasing competition from HP, Canon, and others, Xerox sees this move as pivotal for growth and innovation.

The combined company will serve over 200,000 clients across 170 countries, positioning Xerox among the top five global firms in various print segments. Lexmark’s expertise in the expanding A4 segment—smaller-format printers and copiers commonly used in homes and offices—provides Xerox with enhanced capabilities to meet customer needs.

In addition to improving Xerox’s global scale, the acquisition strengthens its presence in the Asia-Pacific region, a critical area for growth. “This transaction aligns with our strategy to optimize operations and deliver superior value to our customers and stakeholders,” said Xerox CEO Steve Bandrowczak.

To finance the deal, which includes Lexmark’s debt, Xerox plans to use a combination of cash reserves and debt financing. As part of this effort, Xerox will reduce its annual dividend to $0.50 per share from $1, starting with the first quarter of 2025. The company expects the transaction to close in the second half of 2025, pending regulatory approval and customary closing conditions.

The acquisition comes at a time when Xerox is diversifying its portfolio to include IT services. In October 2024, Xerox acquired ITsavvy, an Illinois-based IT products firm, for $400 million to expand its capabilities beyond traditional printing solutions. This dual strategy underscores Xerox’s commitment to adapting to a digital-first economy while reinforcing its foundational business.

The Lexmark deal offers a path to improved revenue and operational efficiency. By combining resources, Xerox and Lexmark aim to capitalize on synergies, reduce costs, and deliver innovative solutions to customers worldwide. With demand for printers and related equipment declining in the digital age, the partnership signals a renewed focus on adaptability and value creation.

The acquisition is expected to reignite investor confidence in Xerox, whose shares, down over 50% this year, rose nearly 5% in premarket trading following the announcement. As Xerox and Lexmark move forward, this deal could redefine the competitive landscape in the global print and software industry, offering both companies a stronger footing to navigate market challenges and opportunities.

Banzai Acquires Vidello, Expanding Revenue and Market Reach

Posted on by slightbourne@noblecapitalmarkets.com
Key Points:
– Banzai acquires Vidello, adding $6.5M in revenue and $2.3M in EBITDA, representing 59% revenue growth.
– Vidello’s suite includes CreateStudio, PhotoVibrance, and a flagship video hosting platform serving 90,000+ customers.
– The acquisition enhances Banzai’s AI-powered platform with advanced video creation and hosting tools.

Banzai International, Inc. (NASDAQ: BNZI), a leading marketing technology company, has signed a definitive agreement to acquire Vidello, a London-based video hosting and marketing suite provider. The acquisition is expected to boost Banzai’s trailing twelve-month (TTM) revenue by 59%, adding $6.5 million, and increase EBITDA by $2.3 million, reflecting the strategic impact of this transaction on Banzai’s growth trajectory.

The acquisition, valued at up to $7 million, includes a mix of cash and equity payments to Vidello’s shareholders, with performance-based targets shaping the final payout. Vidello brings a robust suite of video content creation and marketing tools to Banzai’s portfolio, including CreateStudio, PhotoVibrance, Twinkle, and its flagship Vidello video hosting platform. Vidello’s offerings cater to over 90,000 customers globally, further strengthening Banzai’s reach in the video marketing sector.

Vidello’s standout products are tailored to enhance the video creation and hosting experience for businesses. CreateStudio enables users to craft professional 3D character videos for social media and websites. PhotoVibrance animates static images, turning them into dynamic motion visuals, while Twinkle offers a comprehensive audio platform with royalty-free music for video projects. Vidello, the flagship product, combines video hosting, playback, and collaboration tools, featuring built-in marketing functionalities such as calls-to-action for lead generation.

Joe Davy, Founder and CEO of Banzai, expressed his enthusiasm for the acquisition, stating, “We’re doubling down on building the best suite of video products by adding Vidello. Video content is the future of marketing across every platform. Vidello’s tools make it significantly easier to create attention-grabbing video content without technical expertise.”

Vidello’s Co-Founder and CEO, Josh Ratta, highlighted the synergy between the two companies. “This partnership comes at the perfect time, offering an exciting opportunity to expand our video tools and reach a wider audience. By integrating Vidello’s capabilities with Banzai’s AI-powered platform, we strive to help businesses create and host engaging videos that elevate their marketing efforts,” Ratta said.

The acquisition positions Banzai to capitalize on the growing importance of video in digital marketing strategies. Vidello’s high ratings on platforms such as Capterra and G2 reflect its strong product-market fit and user satisfaction. The integration of Vidello’s tools with Banzai’s existing AI-driven platform is expected to create significant synergies, enhancing customer engagement and reducing churn.

The transaction is set to close in December 2024, subject to customary conditions. The structure includes $5.5 million in cash and $1.5 million in equity or warrants, providing a balanced approach to preserving liquidity while aligning interests.

With this acquisition, Banzai not only strengthens its financial position, growing TTM revenue to $17.3 million, but also expands its technological capabilities, reinforcing its vision of becoming a leader in AI-powered marketing solutions.

Release – SKYX Collaborates with JIT Electrical Supply, Leading Builder Supplier of Electrical, Lighting and Ceiling Fan Products

Posted on by aweinsoff@channelchek.com

Research News and Market Data on SKYX

December 17, 2024

    Over the Years JIT has Supplied Over 100,000 U.S. Homes With a Full Range of Quality Lighting, Ceiling Fans and Electrical Products

    SKYX will provide JIT a full assortment of its Advanced and Smart Plug & Play Products Including Lighting, Ceiling Fans, Recessed Lights, EXIT Signs, Emergency Lights, Down Lights, Indoor and Outdoor Wall Lights and Other  

    JIT Expects to Start Supplying SKYX’s Advanced Plug & Play Products Early 2025

    MIAMI, Dec. 17, 2024 (GLOBE NEWSWIRE) — SKYX Platforms Corp. (NASDAQ: SKYX) (d/b/a SKYX Technologies) (the “Company” or “SKYX”), a highly disruptive smart platform technology company with more than 97 issued and pending patents globally and over 60 lighting and home décor websites, announces a new collaboration with JIT Electrical Supply, a leading electrical, lighting and ceiling fan supplier to the building and professional industries.

    The collaboration is expected to enhance SKYX’s penetration into the builder and professional segments. SKYX’s advanced and smart technologies make homes and buildings smart and safe, while saving time, cost, and creating significant value for property developers and homeowners.

    Bob Hill, CEO of JIT Electrical Supply, said: “I am excited to start implementing SKYX’s game changing technologies into our projects in early 2025. SKYX’s advanced plug & play technology is the most disruptive technology for the lighting industry since LED. The safety, time saving, cost saving, advanced and smart home aspects of the technology are game changing for the builder and professional industries.”

    Rani Kohen, Founder and Executive Chairman of SKYX, said: “This collaboration is another major step towards the builder and professional segments expanding the applicability and penetration of our technology. SKYX continues to align with industry leaders who support and share in the execution of our vision for growth and innovation in smart home and lighting sectors.”

    About SKYX Platforms Corp.

    As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the new standard. SKYX has a series of highly disruptive advanced-safe-smart platform technologies, with over 97 U.S. and global patents and patent pending applications. Additionally, the Company owns over 60 lighting and home decor websites for both retail and commercial segments. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at https://skyplug.com/ or follow us on LinkedIn.

    Forward-Looking Statements
    Certain statements made in this press release are not based on historical facts, but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “can,” “could,” “continue,” “estimate,” “expect,” “evaluate,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “target” “view,” “will,” or “would,” or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company’s ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its products and technologies and integrate its products and technologies with third-party platforms or technologies; the Company’s efforts and ability to drive the adoption of its products and technologies as a standard feature, including their use in homes, hotels, offices and cruise ships; the Company’s ability to capture market share; the Company’s estimates of its potential addressable market and demand for its products and technologies; the Company’s ability to raise additional capital to support its operations as needed, which may not be available on acceptable terms or at all; the Company’s ability to continue as a going concern; the Company’s ability to execute on any sales and licensing or other strategic opportunities; the possibility that any of the Company’s products will become National Electrical Code (NEC)-code or otherwise code mandatory in any jurisdiction, or that any of the Company’s current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all; risks arising from mergers, acquisitions, joint ventures and other collaborations; the Company’s ability to attract and retain key executives and qualified personnel; guidance provided by management, which may differ from the Company’s actual operating results; the potential impact of unstable market and economic conditions on the Company’s business, financial condition, and stock price; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There can be no assurance as to any of the foregoing matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws.

    Investor Relations Contact:

    Jeff Ramson
    PCG Advisory
    jramson@pcgadvisory.com

    Comtech Telecommunications (CMTL) – Late 1Q25 Financials

    Posted on by cpereira@noblefcm.com


    Tuesday, December 17, 2024

    Comtech Telecommunications Corp. engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally. It operates in three segments: Telecommunications Transmission, Mobile Data Communications, and RF Microwave Amplifiers. The Telecommunications Transmission segment provides satellite earth station equipment and systems, over-the-horizon microwave systems, and forward error correction technology, which are used in various commercial and government applications, including backhaul of wireless and cellular traffic, broadcasting (including HDTV), IP-based communications traffic, long distance telephony, and secure defense applications. The Mobile Data Communications segment provides mobile satellite transceivers, and computers and satellite earth station network gateways and associated installation, training, and maintenance services; supplies and operates satellite packet data networks, including arranging and providing satellite capacity; and offers microsatellites and related components. The RF Microwave Amplifiers segment designs, develops, manufactures, and markets satellite earth station traveling wave tube amplifiers (TWTA) and broadband amplifiers. Its amplifiers are used in broadcast and broadband satellite communication; defense applications, such as telecommunications systems and electronic warfare systems; and commercial applications comprising oncology treatment systems, as well as to amplify signals carrying voice, video, or data for air-to-satellite-to-ground communications. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, defense contractors, military, governments, and oil companies. Comtech markets its products through independent representatives and value-added resellers. The company was founded in 1967 and is headquartered in Melville, New York.

    Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

    Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

    Refer to the full report for the price target, fundamental analysis, and rating.

    A NT10-Q. Comtech missed the deadline for filing its 10-Q for the period ended October 31, 2024, the first quarter of the Company’s fiscal 2025. Unfortunately, this is another late filing, following an NT10-K for the 2024 fiscal year and an NT10-Q for the fiscal third quarter of 2024. We are hopeful the Company will be able to file the required documents shortly.

    Reasons. According to the 12b-25 filing, Comtech is unable to file on a timely basis due to “the Company’s ongoing efforts to finalize its condensed consolidated financial statements, which include: (i) its recoverability assessments of (x) receivables and contract assets related to a certain international reseller of our troposcatter technologies, and (y) goodwill and certain long-lived assets due to the Company’s ongoing evaluation of its strategic transformation plans; and (ii) the accounting for and presentation of certain debt instruments and exchanges of convertible preferred shares.”


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    SoftBank Commits $100 Billion to US Tech and Jobs Under Trump Administration

    Posted on by slightbourne@noblecapitalmarkets.com
    Key Points:
    – SoftBank commits to a $100 billion investment in the US over the next four years, focusing on artificial intelligence and related infrastructure.
    – The pledge promises the creation of 100,000 jobs in sectors like AI, semiconductors, and energy.
    – The announcement follows SoftBank’s earlier ties with President Trump, marking a continuation of high-profile investment commitments to the US.

    At a high-profile event in Mar-a-Lago, President-elect Donald Trump announced that SoftBank Group Corp. would commit to a $100 billion investment in the United States over the next four years. This pledge, made in partnership with SoftBank CEO Masayoshi Son, signals a strong belief in the country’s economic future, according to Trump.

    During the event, Trump expressed his excitement, attributing the investment to the “confidence” that the election results instilled in Son and SoftBank. “He’s doing this because he feels very optimistic about our country since the election,” Trump said. Son echoed these sentiments, emphasizing his confidence in the US economy, stating, “I would really like to celebrate the great victory of President Trump.”

    The investment plan focuses on creating 100,000 jobs, particularly in areas like artificial intelligence (AI), data centers, semiconductors, and energy infrastructure. These sectors are expected to thrive as AI technologies advance, offering substantial economic benefits while supporting the digital transformation of industries.

    The announcement marks SoftBank’s most significant commitment to the US since its previous involvement during Trump’s first term. In 2016, Son pledged to create 50,000 jobs as part of a $50 billion investment, which saw SoftBank backing US companies through its Vision Fund. Despite the challenges SoftBank faced with some of its investments, such as the infamous WeWork debacle, the company is once again positioning itself as a key player in US economic growth.

    Trump’s administration previously attracted major corporations to the US with promises of corporate tax cuts and deregulation. This time, he has reiterated the importance of boosting domestic investment by foreign companies, including proposals to expedite the permitting process for projects exceeding $1 billion. While it remains to be seen how these promises will unfold, they are seen as a key element in Trump’s efforts to revitalize US manufacturing and technology sectors.

    However, questions linger regarding the authenticity and financial feasibility of the SoftBank pledge. While SoftBank has been raising capital for a $100 billion chip venture focused on AI, it remains unclear how much of the new investment is genuinely fresh. At the end of September, SoftBank’s cash and equivalents totaled $25 billion, leaving a gap between available resources and the pledged amount. Despite these concerns, SoftBank’s recent success with the IPO of its chip design company, Arm Holdings, valued at around $160 billion, provides a solid foundation for future investments.

    Son, who recently invested $500 million in OpenAI, plans to further expand his ventures in AI, which he believes will revolutionize every industry. As for the ambitious pledge, Son jokingly responded to Trump’s challenge to increase the commitment to $200 billion, saying, “I will really try.”

    In the wake of Trump’s victory, the announcement of this major investment underlines SoftBank’s continued influence in shaping the US tech landscape, as well as Son’s belief in the transformative power of AI to drive future economic growth.

    Broadcom Stock Surges on “Massive” AI Growth Prospects

    Posted on by slightbourne@noblecapitalmarkets.com
    Key Points:
    – Broadcom (AVGO) shares soared over 20% following strong AI chip revenue projections.
    – CEO Hock Tan revealed AI chips could generate up to $90 billion in revenue over three years.
    – The company’s market cap surpassed $1 trillion, driven by AI-driven optimism.

    Broadcom’s stock skyrocketed over 20% on Friday, hitting an all-time high, after the company unveiled robust expectations for its custom AI chips. CEO Hock Tan highlighted the company’s significant opportunities in the artificial intelligence sector during the latest earnings call, describing the potential revenue from its AI chip business as “massive.”

    Tan announced that Broadcom anticipates $60 billion to $90 billion in revenue from its AI chips over the next three years, fueled by demand from three existing hyperscaler customers. While the company declined to name these clients, Tan projected that each would deploy one million clusters of Broadcom’s AI XPUs by 2025. Furthermore, the company confirmed that it has added two new hyperscaler clients who are advancing the development of next-generation AI chips. Industry reports suggest that these new customers may include OpenAI, the creator of ChatGPT, and Apple, both of whom are reportedly exploring custom AI chip solutions to enhance their capabilities and reduce reliance on GPU leader Nvidia.

    Broadcom’s share price surged past $220 during Friday’s trading session, boosting its market capitalization to over $1 trillion. The stock’s remarkable rise—up approximately 98% for the year—reflects robust investor confidence in the company’s ability to capitalize on growing demand for AI chips. This surge comes amidst heightened interest in AI technologies, which have become a focal point for tech giants looking to gain competitive advantages.

    The company’s financial performance further underscores the significance of its AI initiatives. While Broadcom’s overall semiconductor revenue grew 12% year-over-year to $8.2 billion in the fourth quarter, the numbers reveal a sharp divergence between AI and non-AI segments. Revenue from AI chip sales surged 150% to $3.7 billion, while non-AI semiconductor revenue declined 23% to $4.5 billion. Broadcom’s CEO acknowledged this disparity, emphasizing that the AI semiconductor business will likely outpace the non-AI segment in the coming years.

    This trend aligns with broader market dynamics, as the AI chip sector is poised for rapid growth. According to consulting firm International Business Strategies, the AI chip market is projected to expand by 74% in 2025, far outpacing the 12% growth expected for the semiconductor industry as a whole. Analysts believe this trend will persist through the decade as businesses increasingly adopt AI-driven technologies.

    Despite these optimistic projections, some analysts exercised caution. Bernstein analyst Stacy Rasgon raised his price target for Broadcom to $250, highlighting the company’s strong performance and potential, but also noted that its high valuation could limit upside potential in the near term. Similarly, Raymond James analyst Srini Pajjuri maintained a neutral stance, citing concerns about Broadcom’s current trading level, which is approximately 33 times its projected fiscal year 2025 earnings.

    Broadcom’s achievements reflect its strategic positioning in the AI ecosystem, supported by strong partnerships with leading technology firms. The company’s role in developing advanced chips for data centers, consumer electronics, and enterprise applications ensures its relevance in a competitive landscape. However, challenges persist. While Big Tech companies are investing heavily in AI infrastructure, questions remain about the sustainability of these expenditures, particularly as some firms struggle to monetize AI technologies effectively.

    As the industry continues to evolve, Broadcom’s ability to maintain its competitive edge will be crucial. With its innovative AI chip offerings and strategic collaborations, the company is well-positioned to navigate the complexities of a rapidly growing market. Whether it can sustain its momentum amid high expectations remains a pivotal question for investors and industry observers alike.