Matomy Media

Matomy Media Group Ltd. was an Israeli digital advertising company incorporated in 2006 and launched in 2007 under the name AdsMarket. It developed as an advertising-technology holding company focused on performance-based marketing, programmatic advertising, mobile application advertising, video advertising and domain monetization. Rather than building a single consumer-facing advertising product, Matomy assembled a portfolio of specialist businesses and platforms serving advertisers, publishers, application developers and domain owners. The company was founded by Ofer Druker, Adi Orzel and Kfir Moyal. Ilan Shiloah advised the business from its early years and later served as chairman until November 2015. Matomy joined the IAB QAG Certified Network in 2011, reflecting its effort to establish credibility and quality controls in the digital advertising ecosystem. Its growth strategy relied substantially on acquisitions and investments. Notable transactions included investments in Team Internet, a domain-monetization business, Mobfox, a mobile advertising platform, and Optimatic, a video advertising company. Matomy became publicly traded on the London Stock Exchange's High Growth Segment in July 2014. After the initial public offering, Publicis Groupe invested approximately $82 million for a 24.9% interest. Matomy later obtained a dual listing on the Tel Aviv Stock Exchange in February 2016. The public-market structure provided capital for expansion but also exposed the company to pressure from shareholders, bondholders and activist investors as operating results deteriorated. In 2017, activist investor Brosh Capital challenged the company's management and governance. Ofer Druker left the chief executive role in April, and Sagi Niri became chief executive. The company then narrowed its stated focus to Team Internet, Mobfox and Optimatic. Subsequent cost reductions and disposals were intended to simplify the portfolio, but the business faced worsening conditions. Stricter quality requirements in video advertising contributed to the closure of Optimatic in 2018. Matomy also removed or divested traffic that failed its quality standards, reducing earnings at Team Internet and Mobfox. The group entered a severe funding and liquidity crisis in 2018 and 2019. It issued convertible bonds to help finance the purchase of additional Team Internet shares, sold Whitedelivery, and sold Mobfox to Teddy Sagi in November 2018. This left Team Internet as its principal operating asset. Falling revenue, expensive obligations connected with the Team Internet acquisition, sharply declining securities prices and difficult bond negotiations placed the company under substantial financial strain. The bond terms were subsequently renegotiated, with higher interest and a delayed repayment schedule, while principal shareholders supported a rights issue. In 2019, Team Internet's minority shareholders exercised contractual rights to buy back shares at a discount, although the transaction was later reconsidered and ultimately replaced by a broader sale process. Matomy sold Team Internet to CentralNic in December 2019 for a package consisting primarily of cash and CentralNic shares. The proceeds were used to complete the acquisition of the remaining Team Internet interest and repay Matomy's bondholders. The transaction left Matomy without active operating businesses, effectively turning it into a cash shell. The shell subsequently became the subject of takeover and governance activity involving Kfir Silberman and Medigus, an Israeli medical-device company. Medigus sought to acquire a significant minority stake and replace Matomy's management with its own nominees. Matomy therefore ended its life as an operating advertising group rather than as a continuing international advertising platform. Its former assets, including Team Internet, Mobfox and related advertising operations, continued separately under new ownership or were closed.

Matomy was incorporated in Israel in 2006 and began operating in 2007 as AdsMarket. Its founders were Ofer Druker, Adi Orzel and Kfir Moyal. The business entered the digital advertising market through performance-based advertising and subsequently expanded into programmatic and publisher-oriented technology. Ilan Shiloah advised the company from its early period and later became chairman. In 2011, Matomy joined the IAB QAG Certified Network, an industry quality initiative. The company pursued growth through a portfolio model. It invested in Team Internet in 2014, Mobfox in 2014 and Optimatic in 2015. Team Internet operated domain-monetization businesses including ParkingCrew and Tonic, formerly known as DNTX. Its platform connected domain owners and advertisers, while its founders had developed their own exchange after finding existing monetization options inadequate for lower-traffic domains. Mobfox focused on mobile and in-app advertising, and Optimatic focused on video advertising. Matomy entered the public markets in July 2014 through a London listing. Publicis Groupe invested approximately $82 million and obtained 24.9% of the ordinary shares. Matomy added a Tel Aviv listing in February 2016. The public-company phase coincided with continued acquisitions and efforts to scale its advertising technology portfolio, but the group remained dependent on the performance and quality of a limited number of specialized assets. In 2017, Brosh Capital criticized Matomy's management and sought governance changes. Ofer Druker left the chief executive position in April and was replaced by Sagi Niri. Brosh Capital representatives were added to the board. Management announced a narrower strategic focus on Team Internet, Mobfox and Optimatic. Niri's tenure included disposals of non-core assets and substantial staff reductions. He left in January 2018 and was replaced by Liam Galin, formerly associated with Flash Networks. Team Internet also experienced founder and leadership changes. Matomy's financial position deteriorated in 2018. Video-advertising clients imposed stricter traffic and quality requirements, causing Optimatic's revenue to fall and leading to its closure in April. Matomy removed non-compliant traffic from Team Internet and Mobfox, which further reduced reported earnings. In February, the company issued approximately $30 million of convertible bonds to help finance the purchase of the remaining Team Internet share options. It also sold Whitedelivery in August, although the buyer later experienced financial difficulties, limiting the benefit to Matomy. In November 2018, Matomy sold Mobfox to Teddy Sagi. Team Internet then became its only operating subsidiary. The company faced a large acquisition obligation, declining securities prices and bondholders who sought revised repayment terms. A restructuring proposal agreed in principle in January 2019 increased bond interest to 7 percent, extended repayment dates and allowed penalty-free prepayment. Major shareholders committed to a $10 million rights issue, with a further conditional bond investment, while Team Internet's selling shareholders agreed to reduce the expected payment connected with the remaining shares. The company reduced costs further in 2019. Liam Galin left as chief executive and Sami Totah became CEO. Matomy closed its office, moved its address to its legal advisers' premises and discontinued its Tel Aviv market maker. Team Internet's minority shareholders exercised a contractual buyback option at a discount, generating a process intended to repay bondholders. After the transaction was reconsidered, Matomy sought other buyers. In December 2019, CentralNic acquired Team Internet for $48 million, comprising cash and CentralNic shares. Proceeds were used to acquire the final Team Internet interest and repay bondholders. Matomy was left with cash and no active business. The resulting shell attracted takeover interest. Kfir Silberman disclosed a stake and sought changes to Matomy's board, while Medigus negotiated to acquire a substantial minority position. Medigus later announced purchases from shareholders and plans for additional acquisitions, alongside a proposal to replace Matomy's directors. These events marked the transition of Matomy from an operating advertising group to a corporate shell whose former operating assets had been sold or closed.

• 2019

  Team Internet sold to CentralNic

  [1]Matomy Mediaen.wikipedia.org

  The sale of Team Internet removed Matomy's last operating business and left the company as a cash shell.

• 2018

  Optimatic closes and Mobfox is sold

  [1]Matomy Mediaen.wikipedia.org

  Matomy closed Optimatic and sold Mobfox while attempting to reduce its portfolio and address liquidity needs.

• 2017

  Strategic focus narrowed

  [1]Matomy Mediaen.wikipedia.org

  Following activist pressure, Matomy concentrated on Team Internet, Mobfox and Optimatic.

• 2016

  Tel Aviv dual listing

  [1]Matomy Mediaen.wikipedia.org

  Matomy became dual-listed after adding trading on the Tel Aviv Stock Exchange.

• 2015

  Investment in Optimatic

  [1]Matomy Mediaen.wikipedia.org

  Matomy expanded its advertising technology portfolio through investment in Optimatic, a video advertising business.

• 2014

  London listing and Publicis investment

  [1]Matomy Mediaen.wikipedia.org

  Matomy listed in London and received an investment from Publicis Groupe for a 24.9 percent stake.

• 2011

  Joins IAB QAG Certified Network

  [1]Matomy Mediaen.wikipedia.org

  Matomy joined the IAB QAG Certified Network as part of its industry-quality positioning.

• 2007

  AdsMarket launches

  [1]Matomy Mediaen.wikipedia.org

  The company began operations under the AdsMarket name.

• 2006

  Company incorporated

  [1]Matomy Mediaen.wikipedia.org

  Matomy Media Group was incorporated in Israel by Ofer Druker, Adi Orzel and Kfir Moyal.

A portfolio-based advertising-technology group focused on measurable, performance-oriented digital advertising and specialized programmatic platforms.

• Domain monetization and advertising technology · 2010

  Team Internet

  Team Internet was a Munich-based domain-monetization company and Matomy's most important operating asset. Its businesses included ParkingCrew and Tonic, formerly DNTX. The company provided monetization services and an advertising exchange for domain owners, including owners of lower-traffic domains that were not well served by conventional advertising platforms. It was sold to CentralNic in December 2019.

• Mobile and in-app advertising

  Mobfox

  Mobfox was Matomy's mobile advertising platform, serving the in-app advertising ecosystem and connecting advertisers with mobile publishers and application developers. It was one of the three businesses identified in Matomy's 2017 strategic concentration plan. Matomy sold Mobfox to Teddy Sagi in November 2018 as part of its effort to raise funds and simplify the group.

• Online video advertising

  Optimatic

  Optimatic was Matomy's video-advertising operation. It formed part of the group's narrowed operating focus announced in 2017, but stricter quality requirements from video advertisers caused a substantial decline in revenue. Matomy closed the business in April 2018.

• Digital advertising

  Whitedelivery

  Whitedelivery was a Matomy advertising unit that was sold to 1029 Holdings in August 2018. The buyer later encountered financial difficulties, reducing the practical financial benefit of the disposal for Matomy.

• 2019

  Governance and management bonus controversy

  During the 2019 restructuring and sale process, Matomy proposed bonuses for current and former executives while bondholders were negotiating repayment and the company was attempting to sell Team Internet. Bondholders objected, and an initial proposal was withdrawn within a day. Bonus proposals later reappeared and were approved by shareholders, generating controversy over executive compensation during the company's financial distress.

  Source

• 2019

  Delayed disclosure of stake building

  Matomy delayed publication of the official disclosure concerning Kfir Silberman's accumulation of a 5 percent stake. The episode occurred during a contested effort to influence the composition of the board after the company had become a cash shell.

  Source

Read more

• 2019

  Restructure debt and reduce costsStrategy

  Background

  Matomy faced declining advertising revenue, falling securities prices and difficult obligations associated with Team Internet.

  Action taken

  The company renegotiated bond terms, increased the interest rate to 7 percent, extended repayment dates, pursued a rights issue and cut its management and office costs.

  Aftermath

  The restructuring enabled the company to proceed toward selling Team Internet and repaying bondholders.

  Bond interest rate. 5.5 percent → 7 percent (2018-2019 restructuring)

  Source

• 2019

  Sell Team Internet to CentralNicM&A

  Background

  Team Internet was Matomy's last operating business, and the company needed to satisfy bondholder and acquisition-related obligations.

  Action taken

  Matomy sold Team Internet to CentralNic for a package consisting of approximately $45 million in cash and $3 million in CentralNic shares.

  Aftermath

  The proceeds funded the purchase of the remaining Team Internet interest and full repayment of Matomy's bondholders. Matomy had no active operating business afterward.

  Team Internet transaction value. $48 million (December 2019)

  Source

• 2018

  Issue convertible bonds to fund Team Internet obligationsStrategy

  Background

  Matomy needed financing to acquire additional Team Internet shares under arrangements with the subsidiary's founders.

  Action taken

  The company raised approximately $30 million through convertible bonds.

  Aftermath

  The bonds later traded at a substantial discount as revenue declined and investors questioned Matomy's ability to meet its obligations.

  Convertible bond issue. $30 million raised (February 2018)

  Source

• 2018

  Sell MobfoxM&A

  Background

  Matomy needed liquidity and was reducing its operating portfolio after the deterioration of its advertising businesses.

  Action taken

  The company sold Mobfox to Teddy Sagi in November 2018.

  Aftermath

  Team Internet became Matomy's only remaining operating subsidiary.

  Source

• 2017

  Concentrate the portfolio on three businessesStrategy

  Background

  Matomy was under pressure to simplify its portfolio and improve operating discipline after activist investor criticism.

  Action taken

  Management identified Team Internet, Mobfox and Optimatic as the group's principal businesses and reduced emphasis on other activities.

  Aftermath

  The focus was short-lived: Optimatic closed in 2018 and Mobfox was sold later that year, leaving Team Internet as the core asset.

  Source

• 2020

  Medigus seeks a major stake and management change[1]Matomy Mediaen.wikipedia.org

  M&A · Leadership change

  Medigus announced negotiations and purchases intended to give it a substantial stake in Matomy and support the replacement of the company's management.

• 2019

  Team Internet sale leaves Matomy without an operating business[1]Matomy Mediaen.wikipedia.org

  M&A · Bankruptcy

  Matomy sold Team Internet to CentralNic, used proceeds to settle obligations, and became a cash shell.

• 2018

  Optimatic closes amid video-advertising quality pressures[1]Matomy Mediaen.wikipedia.org

  Product generation · Other

  Matomy closed Optimatic after stricter quality requirements from video advertisers materially weakened the unit's revenue.

• 2018

  Matomy sells Mobfox[1]Matomy Mediaen.wikipedia.org

  M&A

  Mobfox was sold to Teddy Sagi as Matomy attempted to raise funds and reduce its operating portfolio.

• 2017

  Activist investor prompts management and board changes[1]Matomy Mediaen.wikipedia.org

  Leadership change · Other

  Brosh Capital pressured Matomy to replace its chief executive and add representatives connected with the activist campaign to the board.

• 2017

  Matomy narrows operations to three principal businesses[1]Matomy Mediaen.wikipedia.org

  Other

  The company announced a more concentrated portfolio centered on Team Internet, Mobfox and Optimatic.

• 2016

  Matomy adds a Tel Aviv listing[1]Matomy Mediaen.wikipedia.org

  Other

  The company became dual-listed after its securities were admitted to trading on the Tel Aviv Stock Exchange.

• 2014

  Matomy becomes publicly traded in London[1]Matomy Mediaen.wikipedia.org

  Other

  Matomy completed an initial public offering on the London Stock Exchange's High Growth Segment and received a major strategic investment from Publicis Groupe.

1. 1Matomy Mediaen.wikipedia.org