Troika Media Files for Bankruptcy, Sale to Blue Torch Announced
December 11, 2023
🌥️Trending News
Troika Media ($NASDAQ:TRKA), a digital media and entertainment company, has filed for Chapter 11 bankruptcy and announced the sale of its assets to Blue Torch, a leading player in the media and entertainment space. The sale comes as a result of several years of financial hardship for Troika, which has struggled to remain relevant in the current media landscape. Its mission was to create content that resonated with consumers and provided a unique experience. Over the years, Troika has created and distributed programming such as television shows, movies, documentaries, web series, and other video content.
However, the company has been unable to keep up with larger competitors and has been unable to raise sufficient capital to support its operations. The sale of Troika’s assets to Blue Torch is intended to provide the company with much-needed capital to continue operating. Blue Torch will acquire all of Troika’s assets, including intellectual property, programming, rights, and contracts, and will provide additional capital to help Troika stay afloat. Blue Torch has also indicated that it plans to use Troika’s existing resources and infrastructure to expand its own operations. The Chapter 11 bankruptcy filing and sale of Troika’s assets to Blue Torch is another sign of an ever-changing media landscape. It is yet another example of how difficult it is for smaller companies to remain viable as competition continues to increase.
Price History
Thursday marked a significant change for TROIKA MEDIA, as the company filed for bankruptcy and announced its sale to Blue Torch. At the start of the day, TROIKA MEDIA opened at $0.4 and closed at $0.5, plunging 71.9% from the previous closing price of 1.9. This decrease in stock price signals the end of an era for TROIKA MEDIA, which has been a well-known media company for more than a decade. The sale of company assets to Blue Torch is expected to be finalized in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Troika Media. More…
| Total Revenues | Net Income | Net Margin |
| 288.98 | -42.02 | -8.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Troika Media. More…
| Operations | Investing | Financing |
| 1.01 | -83.61 | 107.07 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Troika Media. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 155.22 | 124.74 | 0.22 |
Key Ratios Snapshot
Some of the financial key ratios for Troika Media are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 41.8% | – | -11.4% |
| FCF Margin | ROE | ROA |
| 0.3% | -93.9% | -13.3% |
Analysis
Upon conducting an analysis of TROIKA MEDIA‘s wellbeing, GoodWhale scored the company 2/10 on its Star Chart. This low health score indicates that TROIKA MEDIA is less likely to sustain future operations in times of crisis due to its cashflows and debt. The Star Chart showed that TROIKA MEDIA is strong in growth, but weak in asset, dividend, and profitability. This categorizes the company as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given the risk associated with investing in TROIKA MEDIA, investors with a higher risk appetite may be more interested in this type of company. They should understand the potential losses they may incur from such a risky investment before committing to it. More…
Peers
Troika Media Group Inc is an influential media and entertainment company that has been in operation for over a decade. It competes in the industry with four other companies: Threes Company Media Group Co Ltd, FS Development Investment Holdings, Baosheng Media Group Holdings Ltd, and other key industry players. These companies all provide unique services, ensuring healthy competition in the industry.
– Threes Company Media Group Co Ltd ($SHSE:605168)
Threes Company Media Group Co Ltd is a media and entertainment company based in Hong Kong. As of 2023, the company has a market capitalization of 13.37 billion and a Return on Equity of 22.63%. This indicates that the company has been successful in generating profits from their investments. The company produces and distributes TV, film and music content around the world. They also invest in various content related businesses such as production, distribution, licensing, and marketing. In addition, they provide services in the areas of digital marketing, advertising, promotions, branding, and more. Threes Company Media Group Co is a large player in the media and entertainment industry and their market capitalization and Return on Equity are a testament to their success.
– FS Development Investment Holdings ($SZSE:300071)
FSDI Investment Holdings is a financial services holding company listed on the Johannesburg Stock Exchange. Specializing in investments, risk management, asset management and financial services, it serves as a financial services hub for the Southern African region. Currently, FSDI has a market capitalization of 3.97 billion USD, making it one of the largest financial services companies in the region. The firm has a negative return on equity (ROE) of -10.5%, indicating that it is not currently generating a profit. This is likely due to the high levels of investment and risk management it engages in, as well as the costs associated with providing financial services in the region.
– Baosheng Media Group Holdings Ltd ($NASDAQ:BAOS)
Baosheng Media Group Holdings Ltd is a media and entertainment company that provides television programs, radio broadcasts, and other content across multiple platforms. The company has a market cap of 10.88M as of 2023, indicating its relatively small size in the market. Additionally, its Return on Equity (ROE) of -27.43% indicates the company is not generating a return on its investment and may be in need of improvement.
Summary
Troika Media is an international media company that produces films, television programs, and digital content. Recently, Troika Media announced that it has agreed to sell its assets from Chapter 11 proceedings to Blue Torch Capital. This announcement caused the stock price of Troika Media to drop on the same day. Investors need to consider several factors when assessing the potential impact of this sale on Troika Media’s stock price. These include the quality of the assets sold, the terms of the deal, the amount of debt that was forgiven by Blue Torch, and the strength of the management team.
Additionally, investors should consider any changes in the competitive landscape and the overall industry dynamics. By taking these factors into consideration, investors will be able to make an informed decision about whether or not to invest in Troika Media.
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