Digital Brand Media and Marketing Group Inc (DBMM)

[davidam]

From RTGV Management to be posted on the Ihub Message Forum

One would think that if someone buys stock in a public company, they would want that company to succeed. That’s how companies grow and how shareholders make money and share in that growth. Do your own due diligence and cite post 77223 by Aea11 as an intelligent area to build on.



Yet there are those that have never run a business who feel they can offer armchair business advice to a public company that has Glaser Weil and other substantial advisers. As Biz Stone said, ‘you work hard for 8 years and everyone says you’re an overnight success’. For those who don’t know who Biz is, he founded twitter. He should know.

You guys want overnight success while slating the company. Well get over it, there is no overnight success.



A lot of the negativity here comes for the fact that many shareholders have a perception of ‘new’ business, yet apply ‘old’ or traditional methodology to try and understand the business.



RTG is in this arena. The ‘new’ business arena. Building and developing a business takes time. When you include the complexities of bringing in new people and companies, a new dynamic is created and as such, the ‘culture’ of the company begins to take shape. Any shareholder who has experienced this will know exactly what happens, especially in the tech and media space.

To think otherwise shows an incredible lack of understanding and the negativity here only serves to hold the company down. This is the reality of the sector we are in.


In the letter to shareholders, it was clearly stated that:

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This last year has been about streamlining our offering and creating the building blocks to align our businesses to the connected and social environment that we are in today and creating robust platforms for the future. Though complementary, yet different businesses, the recent acquisition of Brand Entertain not only brings together marketing and technology pipelines, but reinforces the ethos that a company is only as good as its people. With the make-up of the new company, RTG Ventures has created a powerhouse of seasoned, entrepreneurial professionals who have built and sold a series of successful businesses between them.




The letter then went on to say:



Digital Music News recently reported that in 2011, over 400M has been invested in digital media businesses with a total valuation in the sector in the multi-billions. Most digital media companies start out privately owned, meaning investors outside the closed world of private equity funds and venture capital don't get an opportunity to participate in first mover technology from the ground up. RTG Ventures is one of the only digital media companies already trading publically and as such presents an opportunity for grass roots investors who want to grow with RTG and now Brand Entertain.


Digital Media Technology is the fastest growing, certainly sexiest, space available in the equity markets today. Yet most of these companies mentioned still do not have revenues and certainly not at the levels which would support traditional metrics valuations. Coupled with an inability to quantify how to measure ROI in social media, concern in the financial community has heightened. These discussions will continue, but what has been made clear is that the manufacturing model of measuring revenues, ascribing earnings ratios and multiples do not fit the digital model.



Keep the faith people and to all the haters, happy Friday 13th and remember, every time you point a finger, 3 point back at you.