Totally agree. Terrible deal. RAIZ has zero experience buying above-the-line media. It's a landscape of sharks. And they just gave a way a big chunk of equity in return for big mainstream media spend...
Why does SevenWest have an M&A team? Ans: To offload media they cant sell!
If it's your first go at buying above-the-line media; 1 Don't spend up big. Scale up and learn first. 2. Dont give away $8m equity for $8m media.
PLUS -this is a one step strategy to abandon "the world's lowest cost acquire of financial services customers". That's gone now.
More dilution equals continuing flat/declining share price. It's maths.
RZI Price at posting:
$1.70 Sentiment: Hold Disclosure: Held
(20min delay)