Is Inuvo Competitor Perion Being Acquired by Conduit?

July 10, 2013 at 8:14 am Leave a comment

Many outlets are reporting that toolbar behemoth Conduit will be acquiring Inuvo competitor Perion in a deal that would value Perion shares at a 50 – 60% premium from where they opened this weeks trading.  While neither company has been willing to confirm the deal as of this morning’s market opening, the trading in PERI the last 24 – 48 hours suggests something is up (click below for 5 day chart):

http://finance.yahoo.com/echarts?s=PERI+Interactive#symbol=peri;range=5d;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Peri is up another 5%+ this morning on very large volume.  While rumors like this are commonplace, the detail and specificity (split of mobile and toolbar ops then reverse into peri) given in these reports combined with the trading action in PERI suggests there may be something to these rumors –

  http://thenextweb.com/insider/2013/07/10/israeli-browser-toolbar-giant-conduit-expected-to-split-up-and-acquire-perion-incredimail/

These companies represent two of the closest comparables out there for Inuvo (in terms of business model) and such a combination could shine some light on Inuvo’s smallish valuation and create an even bigger player in the space who might look Inuvo’s way for future growth by acquisition.  It will be interesting to see if additional capital starts to flow into Inuvo when and if this deal is confirmed. 

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