2024-09-24
In this interview, Lars Rambe, CEO of Hoi Publishing AB (publ), talks about the acquisition of a majority stake in Eleven Stories AB. Rambe also discusses the significance of the acquisition for the mobile media venture, as well as the significant revenue opportunities going forward.
1. Hoi has recently completed an acquisition of the majority of the shares in Eleven Stories AB, can you tell us more about the acquisition?
Hoi has decided to build a media division where not least the acquisition of Eleven Stories creates great opportunities for us. Eleven Stories contains a significant rights catalog developed by the producers and directors Håkan Bjerking and Daniel Fridell with a focus on film and theater productions, but also with book and game rights. Hoi acquires 50.1% of the shares in the company for a purchase price of 7.5 million SEK and a commitment to an unconditional shareholder contribution of 500 thousand SEK. The purchase price will be paid through the issuance of 5 million B shares, thus at a price of 1.50 SEK per share.
Based on our due diligence and review of the catalogue, a current value of Eleven Stories was determined at approximately SEK 16 million with a value within five years of SEK 61 million if several of the current projects can be realized. Based on this, the agreement involves a possible additional purchase price of a total of SEK 22.6 million divided into four equal parts. The additional purchase price will also be paid through the issuance of new B shares in Hoi, but at a price of SEK 2.50 per share. Through the acquisition, we also tie Anette Mattsson even more strongly to us as she is CEO of both Eleven Stories and Script46, which has also now become part of the Hoi group. Anette is also a minority owner in both companies.
2. How did the acquisition process go? What made you choose Eleven Stories?
The contact with Håkan Bjerking and Daniel Fridell was established through Anette Mattsson. Through Script46, she had the opportunity to start a collaboration on one of their film projects and in the continued dialogue, the great possibilities of a much larger collaboration were identified in which Hoi plays a crucial role. The whole process went quickly, in a few weeks, which was due to frequent contacts and a great deal of consensus on how a collaboration should work. It is very unusual to have the opportunity to invest in this type of rights company where the refinement of the portfolio has already come this far. All parties contribute in a unique way where everyone is necessary for a good implementation. Since all parties also have a lot to gain from a positive development for Hoi (since the payment in the deal is essentially made in Hoi shares), it provides extra security and motivation.
3. What does Hoi see as the most interesting thing about becoming a majority owner in Eleven Stories?
We are creating a basis for a major investment in mobile media that complements the publishing business in a very exciting way. Giving Anette Mattsson the right working conditions also means that we broaden the possible revenue base for the group significantly and that our systems for managing rights and royalties can be used in a new context. So this is a logical step for us to take that creates many new opportunities.
4. What are your hopes for upcoming media projects?
Since there are at least two projects that have good prospects of being completed as early as 2025 or 2026, these will be the first strong evidence of the potential of this investment. Each project will, upon completion, generate a turnover of at least tens of millions of kronor.
5. What is the financial potential for Eleven Stories?
When reviewing the production portfolio and the most advanced projects, it was determined that the company could generate several hundred million kronor in revenue in the coming years.
6. What is the revenue potential for your “book to film ventures”?
In many cases, it is a long journey from getting interest in a book from a production company to it becoming a film, but we have very significant rights that are clearly mature and that we believe will generate a good result in the coming years. There are several ways to make money from these rights and I am convinced that we will see a significant part of the group's turnover in the coming years that in one way or another comes from the development of book rights that are relevant for film, television, theatre and/or games.
7. Do you have any hopes for the Gothenburg Book Fair?
It will be fun to showcase Ekström & Garay, which we acquired in March this year as one of our imprints and where we are now rapidly integrating and developing the entire Swedish organization. A large number of authors are participating in the fair and we also have a very exciting stand program where, among other things, we will talk on stage about what is happening with the new media division. The book fair is always one of the great highlights of the year and the contacts we make there are always valuable. It will of course also be a little extra fun to present Last man standing – Bruce Springsteen Live 1999 – 2024! Pre-orders for Jan M Lindahl's incredibly fine photo book are already extensive.
We thank Lars Rambe for the interview and wish him and the company every success in the future.
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic owns no shares in the company at the time of the interview.
