The market seems to be quite volatile today, with the healthcare, cannabis, and consumer sector inching higher, while energy stocks and banks drop marginally. However, not every consumer stock is on the rise today. In fact, there’s one (AirMedia Group) that is actually, as of this writing, down almost 20%.
What Happened?
On Wednesday, AirMedia Group Inc. (NASDAQ:AMCN) grabbed the attention of a number of analysts as it is down 17.54% and is currently trading at $1.41. According to Yahoo Finance, the AMCN stock has a market capitalization of $89.20M, and it has been calculated that the company has 61.76M outstanding shares.
Founded in 2005, and headquartered in China, AirMedia Group operates advertising platforms in the country, and the company is in charge of China’s largest digital media network that is devoted primarily to air travel advertising.
There are a few who find it to be unnerving that a company that operates numerous digital frames, digital TV screens, and sells advertisement on the routes that eight airlines follow, three of which are China’s largest airlines, could drop so significantly. However, Wednesday’s drop is primarily due to AirMedia Group announcing the termination of going private transaction.
What Does This Mean?
Taking this announcement into consideration, it isn’t entirely shocking that the company dropped as much as it did Wednesday, but it is still unfortunate as the company itself still has such a dominant hold over China’s advertising sector.
AirMedia Group disclosed today that it has taken part in a termination agreement with AirMedia Merger Company Limited and AirMedia Holdings Limited to abolish the merger agreement that it had previously announced. Why? Because the going private transaction would not be finished by December 31 of this year.
The Chinese company disclosed that both parties have unleashed one another from all duties, obligations, accountability, and responsibility in regards to the proposed transaction. Further, both parties will not be required to pay a termination fee.
Featured Image: twitter
