Shares in MagicJack VocalTec Ltd. jumped almost 16% Monday amid a report by Axios that YipTV, an OTT video service provider, has proposed a deal to acquire the VoIP company for $9.50 per share.
The report notes that YipTV is looking to build a “multi-line, consumer home services business” and aim to “[d]rive YipTV services into at least 10% of MagicJack customers.” The report also pointes out that Michael Tribolet, YipTV’s co-founder and CEO, once served as chief business officer at MagicJack.
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MagicJack shares closed up $1.05 (15.91%) to $7.65 each Monday.
YipTV and MagicJack have not responded to inquiries seeking comment, but Axios said the proposed deal would have a small fish buying a big one, noting that YipTV is projected to have less than $10 million in revenues, while MagicJack made nearly $100 million last year.
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