Yeah1 to buy back 2 million shares

By Minh Son   June 7, 2019 | 07:01 pm GMT+7
Yeah1 to buy back 2 million shares
On May 23, YouTube officially confirmed the termination of all content hosting agreements with Yeah1. Photo by Shutterstock/PixieMe.

Digital media giant Yeah1 Group has decided to repurchase two million of its shares and keep them as reserves.

The buyback is expected to take place between June 18 and July 17. It will be done through purchase agreements or order matching. Yeah1 Group (stock code: YEG) registered the transaction Thursday afternoon on the Ho Chi Minh Stock Exchange (HoSE).

Analysts see this move as an effort to stem the decline of Yeah1’s YEG stock by reducing the number of shares outstanding on the market.

News of the buyback saw the share’s value shoot up by almost 10 percent at one point in Thursday’s trading session, peaking at VND94,000 ($4.03).

On May 23, YouTube officially confirmed the termination of all content hosting agreements with Yeah1 and all of its subsidiaries, after Yeah1 failed to negotiate to salvage its business relationship with the streaming platform. 

Soon after the termination was announced, YEG’s stock fell in eight out of its last 10 sessions, dropping from VND100,500 ($4.31) per share on May 23 to VND90,300 ($3.87) as of Friday morning, down by around 10 percent.

YEG’s trading price on March 1, before its troubles with YouTube began, was VND245,000 ($10.50) per share.

Founded in 2006, Yeah1 is Vietnam's largest digital media ecosystem, operating TV channels, movie studios, YouTube networks, and digital news. It was also the first media company to go public, listing on the HoSE last June.

 
 
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