Rhythm One tenders off for outstanding YuMe shares

Online advertising firm RhythmOne presented an exchange offer to YuMe shareholders on Thursday to purchase the outstanding shares of the digital video brand, pursuant to the companies' previously announced merger agreement.

Subject to the terms and conditions of the offer, which was expected to close during the first calendar quarter, YuMe stockholders who validly tendered their shares would receive $1.70 of interest-free cash per share, as well as 0.7325 ordinary shares in RhythmOne.

RhythmOne hoped the acquisition would result in a combined entity with a complete end-to-end platform that had the resources and talent to drive earnings growth both organically and through further acquisitions.

As of 1440 GMT, shares had risen 4.73% to 288.00p.