Vietnamese digital media company, Yeah 1 Group, which saw YouTube terminate all of the group’s content and hosting agreements in May, has made a commitment to buy back 2 million of the shares owned by outside investors and to keep those shares in reserve for future business operations.
According to a representative of the Ho Chi Minh Stock Exchange, (HoSE), the buy back will take place for 1-month, between June 18 and July 17. Yeah1 Group shares, which are listed under the stock code of YEG, will be repurchased through various purchase agreements and order matching mechanisms.
Financial analysts believe that YEG’s share buy back programs is an attempt by the company to stop further decline in the share price by limiting the number of shares that are in the market.
Before its termination by YouTube, YEG shares traded as high as $10.5 USD (245,000 VND) per share, but since May the shares have been trading as low as $3.87 USD (90,300) per share.
Yeah1 television was founded in 2006 and is Vietnam's largest digital media ecosystem. The company operates TV channels, digital entertainment and new platforms, as well as movie studios. It was the first Vietnamese media company to go public and was officially listed on the HoSE in June 2018.
Revenue from its YouTube Multi Channel Networks (MCN’s) was expected to contribute 30 ~ 40% of the company’s revenues, and its loss of its agreements with YouTube has been a major blow to the company. Since the dissolutions of its agreement with YouTube, the company has created a plan to downsize all of its operations and a number of key staff have quietly left the company, or are planning to leave the company after the share buy back is completed in July.