Case Study:
Evaluation of Offer to Purchase Digital Media Content
Client Profile
A top 10 global digital media content creator within the gaming industry.
Task
The content creator had been offered a multi-million dollar deal for a proportion of their content library, this totaled over 4,300 unique video’s.
Our Role
To evaluate the offer for fair value and advise on how to improve upon it.
The Quantum Approach
- Situational Analysis – Our first requirement was to understand what was important to the content creator, both in financial terms and their long term plans for their business. We needed to view the channels content both as exceptional creative works but also financial assets.
- Data – We required a data source to base our analysis upon, data extraction from the the digital media platform seemed optimal, however data extraction was difficult.
- Financial Modelling – We needed to be able to arrive at our own forecast to evaluate the offer from the third party.
- Advisement – We were careful to translate our financial advice so it was meaningful to the content creator.
Method:
We mined data from the content creators channel at a granular level using a unique proprietary web application developed inhouse that extracts data effortlessly from the digital media platform.
Our team of data scientist’s developed a range of advanced A.I. forecasting techniques from which we were able to accurately forecast both the number of future views and resultant income at a unique content level. This was made additionally more difficult due to the COVID-19 pandemic which materially distorted normal patterns within the data.
Using the cash flow forecast we then applied a range of financial metrics to internally evaluate the offer from the third party.
We then translated these metrics into terms the content creator was conversant with to ensure that we could advise them of the worth of the proposed deal.
Outcome:
By offering this evaluation to the content creator they were able to not only evaluate the offer from the third party but also to enhance it.
Contact Us
Unit 6, The Mill Building,
31 – 35 Chatsworth Road, Worthing,
West Sussex,
BN11 1LY
UK
+44 (0) 207 632 7565
lauren@quantumda.co.uk
