The Meet Group, the publicly traded umbrella to brands including Skout, Tagged and Growlr, has announced a new share repurchase program.
The Board of Directors has approved a $30 million scheme, enabling the company to purchase shares of common stock “in the open market or through negotiated transactions through 2021”.
Money from operations will likely be used to acquire the shares, though The Meet Group is not obligated to buy any specific amount.
“The new stock repurchase program underscores our belief in the livestreaming video opportunity and our positive long-term outlook for our business,” said Geoff Cook, Chief Executive Officer of The Meet Group.
“We expect to continue to generate meaningful cash flow, enabling us to buy back shares as we execute on our commitment to drive value for our shareholders.”
The share price has reacted positively to the news, climbing over 8% on Monday. It then increased another 4% in after-hours trading.
The uptick is welcome news for investors, as the stock has fallen significantly in mid-2019. It traded at above $5 for most of the beginning of the year, before falling around 40% over May and June.
One Seeking Alpha analyst recently claimed the suite of products were “uninvestable” after the New York Times raised concerns about explicit content on livestreams. Nudity is banned in The Meet Group’s terms of service text, however, and the firm reaffirmed its commitment to clean content and user safety in the wake of the criticism.
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