Key Developments: Digital Generation Inc (DGIT.OQ)
7.32USD
17 May 2013
$0.21 (+2.95%)
$7.11
$7.14
$7.41
$7.07
256,954
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Latest Key Developments (Source: Significant Developments)
Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Digital Generation Inc
Ryan & Maniskas, LLP announced that class action has been filed in the United States District Court for the Northern District of Texas on behalf of purchasers of Digital Generation, Inc. (Digital Generation or the Company) common stock during the period between June 20, 2011 and February 19, 2013, inclusive (the Class Period). The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, financial performance, and prospects. During the Class Period, Digital Generation touted itself as a Company achieving steady and consistent growth, and poised for a strategic buyout on the basis of the Company's strong performance and diversification. In order to cultivate this image, defendants made a series of false and/or misleading statements regarding its growth and value of its acquisitions, failing to disclose that: the Company's online segment was grossly underperforming, and well below the value reported to investors; past acquisitions had masked the Company's declining revenue base; the Company had vastly overpaid for its acquisition of Media Mind, Inc. (Media Mind) and other online segments in order to appear to be an attractive acquisition target; the Company was not sufficiently poised for a strategic partnership or buyout; and as a result of the above, the Company's financial statements were materially false and misleading at all relevant times. Full Article
Federman & Sherwood Announces Securities Class Action Lawsuit Against Digital Generation Inc
Digital Generation Inc announced that on May 2, 2013, a class action lawsuit was filed in the United States District Court for the Northern District of Texas against Digital Generation Inc. The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is June 20, 2011 through February 19, 2013. Plaintiff seeks to recover damages on behalf of all Digital Generation, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, July 1, 2013 to serve as a lead plaintiff for the entire Class. Full Article
Rosen Law Firm Announces Filing Of Securities Class Action Against Digital Generation Inc.
The Rosen Law Firm announced that a class action lawsuit has been filed on behalf of all purchasers of the securities of Digital Generation, Inc. between June 20, 2011 and February 19, 2013. Full Article
Digital Generation Inc Issues Q1 2013 Revenue Guidance In Line With Analysts' Estimates; Issues FY 2013 Guidance In Line With Analysts' Estimates
Digital Generation Inc announced that for the first quarter of 2013, it expects revenues to be between $90 and $92 million. Total revenues for fiscal 2013 are expected to be in the range of $370-$400 million and Adjusted EBITDA is expected to be in the range of $105-$125 million. According to I/B/E/S Estimates, analysts on average are expecting the Company to report revenue of $93 million for the first quarter of 2013; revenues of $397 million and EBITDA of $125 million for fiscal 2013. Full Article
Bronstein, Gewirtz & Grossman, LLC Announces Investigation Of Digital Generation Inc
Bronstein, Gewirtz & Grossman, LLC announced that it is investigating potential claims on behalf of purchasers of the securities of Digital Generation, Inc. (Digital Generation or the Company). The investigation focuses on whether the Company and its executives violated federal securities laws. On February 19, 2013, shares of Digital Generation fell $2.53 or 28% to close at $6.45 after the company announced its failure to find a buyer or strategic partner and on the company's fourth quarter and 2012 annual report, where annual consolidated revenue decreased by 4% year to year, and the company took a $20.8 million loss, including a $11.4 million goodwill impairment charge. The 2012 loss from continuing operations (including a goodwill impairment charge of $219.6 million) was $238.8 million. Full Article
Digital Generation Inc Names New Chief Financial Officer
Digital Generation Inc announced that it has named Craig Holmes as Chief Financial Officer, effective November 12, 2012. Omar Choucair will remain with the Company as Executive Vice President until the end of 2012 and thereafter as a consultant for an additional 18 months, and will continue to support the strategic alternatives process. Full Article
Digital Generation Inc's MediaMind And Omnicom Media Group Announce Strategic Partnership
MediaMind, a division of Digital Generation Inc announced that it will become a global technology partner for Omnicom Media Group (OMG). OMG's clients will use the MediaMind platform to manage and deliver online ads in North America, EMEA, LATAM, and APAC. Full Article
Digital Generation Inc To Explore Strategic Alternatives To Maximize Shareholder Value
Digital Generation Inc announced that its Board of Directors is undergoing a strategic review of the feasibility and relative merits of various financial strategies for the Company, which may include partnerships, strategic business model alternatives, a sale or other transaction. DG has engaged Goldman, Sachs and Co. in conjunction with the exploration of strategic alternatives. In making this announcement, DG offers no assurance that the review of possible alternatives will result in a sale or related transaction and the Company does not intend to disclose developments until such time as the Board of Directors approves or has a transaction(s) to recommend to stockholders, or otherwise deems further disclosure appropriate. Full Article
Digital Generation Inc's MediaMind And The Media Kitchen Announces Preferred Partnership
MediaMind, a division of Digital Generation Inc, and the independent provider of integrated digital advertising solutions, announced a partnership with The Media Kitchen, an advertising technology led integrated media agency with offices in New York and Atlanta. The Media Kitchen utilizes MediaMind's complete suite of products, including; Smart Planning, Smart Trading, Smart Versioning, standard banner, rich media, in-stream video, mobile and CC4S (Channel Connect for Search) for its clients' campaigns to reach consumers. Full Article
Digital Generation Inc Rejects Takeover Offer-Reuters
Reuters reported that Digital Generation Inc recently rejected a takeover bid from Extreme Reach Inc of more than $20 per share. The offer, backed by private equity firm Providence Equity Partners according to the source, would have been worth more than $550 million based on DG's outstanding shares. Reuters first reported on March 25 that DG had hired Goldman Sachs Group to find a buyer and has drawn interest from several private equity firms and rival companies, citing a separate source familiar with the matter. Parties that have evaluated a potential purchase of DG, formerly known as DG FastChannel, included buyout firms Hellman & Friedman, Thoma Bravo, Extreme Reach backed by Providence Equity Partners, and TA Associates, the source had said at that time. Another private equity firm, Bain Capital, is also a suitor for DG, a third source familiar with the situation said this week. DG has rejected the offer from Extreme Reach, citing potential antitrust concerns, and excluded the company from the ongoing sale process. Full Article
TEXT - S&P may still cut Digital Generation ratings
Overview -- We originally placed the ratings on Digital Generation Inc., an Irving, Texas-based company that provides technology services for delivering media, on CreditWatch with negative implications in July 2012, based on the company's plan to explore strategic alternatives. -- The ratings remain on CreditWatch with negative implications. The corporate credit rating on Digital Generation remains 'B+'. -- The continued CreditWatch listing reflects the possibility that the
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