It looks as if we will see significant news any day now; Huge contract announcement? Buyout offer from one of the majors?
RAYS is an acquisition target for Companies such as Google or Microsoft. Companies likely to make a move for RAYS include:
#1 Netflix. As competition in the online movie market continues to heat up, acquiring Raystream could solve Netflix's current technical glitches and provide an insurmountable advantage going forward. With a market cap that reached as high as $16 billion this year, Netflix has the financial clout to make a deal that would send Raystream stock soaring.
#2 Google/YouTube. After 48 acquisitions in 2010, the Internet giant is aiming for 50 or more in 2011. A recent Wall Street Journal article, "Google Cranks Up M&A Machine," revealed that "Google is going to continue to be aggressive…[focused on] small start-ups that can be a source of new technology, talented engineers and revenue." Raystream fits that description perfectly, especially as Google makes a push for YouTube's innovative pay-per-view model.
#3 Microsoft. YouTube may be the reigning king of online video, but Microsoft jumped into the top tier in online video with nearly 50 million views in a single month. With a market cap over $200 billion, even buying Raystream at a premium would be pocket change to the tech titan.
#4 Yahoo! Over the years, this internet pioneer has acquired more than 60 companies, including several in the hundreds of millions of dollars. By streamlining operations, Raystream could be the shot in the arm for the company to achieve its recently stated goal of becoming "the world’s premier digital media company."
#5 Vevo. The #1 music video company backed by heavy-hitter stakeholders such as Google, Universal Music Group, and Sony, generates about 215 million views per day and tens of millions in annual ad revenue. With a $300 million estimated market value and backing of heavy hitters, Vevo could lock up the music video market for years with an acquisition like Raystream.
#6 Time Warner/Facebook. Facebook, with 500 million users and $2.19 billion in display ad revenue this year, partnered with the Warner Bros. division of Time Warner to test the digital movie rental waters this spring. Raystream could put the social networking giant over the top.
#7 Viacom. Viacom, one of the world's biggest media companies — owner of MTV, Paramount Pictures, BET, Comedy Central, and DreamWorks Pictures — reaches over 520 million households worldwide in over 160 countries and territories. As it seeks to ambitiously expand its online video presence around the world, Raystream could a killer app.
#8 AOL. AOL is streamlining and re-positioning itself as a provider of online content after undoing its $124 billion merger with Time Warner Inc. Earlier this year AOL paid $315 million for Huffington Post, but Raystream could prove to be a much more profitable investment for its online video offerings as the company seeks to revitalize its brand.
#9 Amazon. This $100 billion giant launched its new streaming video service in February 2011, with more than 100,000 titles already available on demand ? and could use Raystream to manage the anticipated surge in usage from its highly touted new Kindle Fire tablets.
#10 Hulu. Americans viewed 3.8 billion video ads last month — with Hulu generating more than 1.1 billion of them. (They're expected to blow away last year's $240 million in revenue.) Cash-rich, fast-growing, and a perfect suitor.
