Nexxen Seeks Approval for $20 Mln Share Buyback, Invests $35 Mln in VIDAA

Nexxen International seeks approval for a $20 mln share buyback program to invest $35 mln in VIDAA, raising its equity stake to 6%. The move aims to take advantage of a discounted valuation and boost long-term value through data and advertising monetization rights. The company has a solid cash position and is evaluating strategic opportunities for growth.

Nexxen International Ltd. (NASDAQ: NEXN), a global advertising technology platform, has announced plans to seek authorization for a new $20 million Ordinary Share repurchase program. This initiative follows the completion of the company's current repurchase program, which has $7.2 million remaining as of July 31, 2025 [1].

In parallel with the share buyback, Nexxen intends to invest an additional $35 million in VIDAA, increasing its equity stake to approximately 6%. The investment will support VIDAA’s North American CTV expansion and is expected to enhance the long-term value of Nexxen’s exclusive data, advertising monetization rights, and overall investment [1].

The new repurchase program requires a 30-day creditor objection period and bank lender approval as per Israeli regulations. The program can be modified or suspended at any time, with repurchased shares being reclassified as dormant shares under Israeli law [1].

Nexxen’s strong cash position, supported by its profitable and cash-generative model, enables flexibility for the Company to execute a balanced capital allocation strategy that prioritizes both long-term growth and shareholder value creation [1].

The company plans to continue investing in the expansion of its commercial and media teams and in product innovation, aimed at both accelerating future growth and reinforcing its global market position. Additionally, Nexxen is exploring targeted strategic opportunities to expand its monetizable data assets, enhance its AI capabilities, accelerate growth across its core business lines in the U.S. and internationally, or enter new high-growth markets [1].

Assuming no creditor objections within the 30-day period, and receipt of the required lender approvals, Nexxen would be permitted to initiate the new repurchase program. The new repurchase program would not require the Company to repurchase a specific number of Ordinary Shares, and it may be suspended, modified, or discontinued at any time, subject to applicable law, and outside of blackout periods. Any Ordinary Shares repurchased under the new repurchase program will be reclassified as dormant shares under the Israeli Companies Law and held in treasury without rights [1].

The Company will provide an update upon the commencement of the new repurchase program (pending receipt of necessary approvals), or if there are any delays due to creditor objections or lack of lender consent [1].

References:
[1] https://www.stocktitan.net/news/NEXN/nexxen-seeks-authorization-for-new-20-million-ordinary-share-uppbr5ivf76p.html