Acquisition Announcement. Things to understand, page-3

Finally someone speaking a little more frankly on the current state of affairs AND has the risk profile to prove it.

As I said in another thread prior to the announcement, it's largely a land grab. There may be opportunities to leverage the existing carrier relationships to expedite the CSP roll-out however that's an opportunity, not a given.

I haven't done a cost benefit analysis on the acquisition but it doesn't seem to be new and disruptive technology. Premium billing features have been around since the Nokia 5110 days (ringtones anyone?) and are largely dispised by the Australian market as most people don't seem to know what they're buying. A subject of many TIO complaints.

I can see the opportunities in billing directly to a phone bill rather than having to use Google Play or Apple Store to purchase an overpass subscription. However, this technology again isn't ground breaking and with the millions of dollars spent in developing the CSP so far, I don't consider it much of a stretch to enable this feature without having to acquire a separate company.

The other comment I can make is that SYT may be able to bring about cost savings by bringing that technology into their existing infrastructure, marketing and support would be a shared service. I think it's too early to tell about potential savings but the risk of losing good will and customers is realistic. Perhaps they've brought over business development managers, sales team and perhaps a technical person or two.

I'm not poised either way on the acquisition. As I said it's one for the bottom drawer.. Although a stop loss might be a better idea. It could go either way and the share price is so low, even 0.01 cent movements is a significant movement right now.

I still think opportunities are there with vertical integration and I think that's why it was acquired. The business on its own wouldn't be worth the investment.