Authentic Holdings Inc. (AHRO) has spent the past year laying the foundation for growth with the acquisition of Maybacks Global Entertainment in March and Goliath Motion Pictures in June. With these acquisitions under its belt, the company may be on the verge of unlocking significant value by leveraging its enormous content library and distribution platform.
In this article, we’ll take a look at the company’s recent deals and what they could mean for investors in the short-term and long-term.
A $2.5M Ad Share Deal
Authentic Holdings’ Maybacks Global recently signed a landmark five-year ad share agreement with Didja Inc., a rapidly growing local programming network. With an inventory of more than 120 million monthly impressions, the deal could generate as much as $2.5 million in revenue over the next 12 months – and that could be just the beginning as it scales into new markets.
“This is a watershed agreement for both parties,” said Authentic Holdings President Chris Giordano in a press release announcing the deal. “We are providing our much sought-after content and LOCALBTV [owned by Didja] is providing a large platform in major markets which will lead to substantial revenue.”
Under the terms of the deal, Maybacks will provide content from one of its 13 networks in exchange for a revenue share agreement based on monthly impressions across Didja’s local TV platform. Currently, the Didja network covers New York City, Southern California, Phoenix, San Diego, San Francisco, and Philadelphia with plans to expand into new markets over time.
More Deals in the Pipeline
Authentic Holdings’ Maybacks Global already has distribution across Roku, DirectTV, Local Now, and other platforms, with a reach of over 450 million worldwide. In exchange for free airtime, the company is offering partners a revenue share opportunity and is already in active discussions with several entities looking for “full channel” access.
As part of these deals, the company aims to secure 50% of all ad sales and a 5% to 10% override on all product sales in exchange for free access to its platform. In addition, it will seek an equity interest in branded channels to create a long-term relationship or, potentially, a buyout of Maybacks equity interest at some point in the future.
On the ad buying side, the company is also in late-stage discussions with a major media buying agency to sell them somewhere between 60% and 80% of its advertising inventory for as much as $1 million. This deal could add significant cash flow to the company’s bottom line over the coming quarters and monetize its existing ad inventory at an attractive rate.
Looking Ahead
Authentic Holdings Inc. (AHRO) has spent the past year laying the groundwork for significant growth with the acquisition of two media plays. With the Didja deal and others in its pipeline, the company is on the verge of unlocking the value of these acquisitions and generating a significant return on investment for shareholders over the long-term.
The company anticipates Maybacks Global will become cash flow positive in August and directly contribute to the company’s bottom line. Meanwhile, management promises to keep shareholders updated on licensing revenue on a monthly basis via X (formerly Twitter).
For more information, visit the company’s website or follow them on social media.
