Nexxen Seeks Authorization for New $20 Million Ordinary Share Repurchase Program

Rhea-AI Summary

Nexxen (NASDAQ: NEXN), a global advertising technology platform, has announced plans to seek authorization for a new $20 million Ordinary Share repurchase program. The program will commence after completing the current repurchase program, which has $7.2 million remaining as of July 31, 2025.

The company is pursuing a balanced capital allocation strategy, including a $35 million investment in VIDAA to increase its equity stake to approximately 6%. Additionally, Nexxen plans to invest in commercial and media teams expansion, product innovation, and explore strategic opportunities to enhance its capabilities and market presence.

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.

Positive

• Initiating new $20 million share repurchase program, demonstrating confidence in company's value
• Strategic $35 million investment in VIDAA to expand North American CTV presence
• Strong cash position with profitable and cash-generative business model
• Plans for expansion of commercial and media teams and product innovation

Negative

• Program implementation subject to 30-day creditor objection period and bank lender approval
• Current geopolitical risks due to Israel-Hamas conflict could impact operations
• Program may be suspended or modified at any time

Insights

Capital Markets Strategist

Nexxen's $20M share buyback and strategic investments signal confidence despite undervaluation, balancing shareholder returns with growth initiatives.

Nexxen's announcement of a $20 million share repurchase program while simultaneously investing $35 million in VIDAA represents a well-balanced capital allocation strategy. The buyback initiative, which would follow the completion of its current program (with $7.2 million remaining), indicates management's confidence in the company's intrinsic value and belief that shares are trading at a discount to their true worth.

This dual approach is particularly noteworthy. While the share repurchase directly returns capital to shareholders and potentially supports the stock price, the VIDAA investment (increasing Nexxen's stake to approximately 6%) targets long-term growth through expanded CTV capabilities in North America. This balanced approach suggests management is avoiding the common trap of choosing between growth and shareholder returns.

The company's ability to pursue both strategies simultaneously stems from its self-described "profitable and cash-generative model," providing the financial flexibility for these initiatives while still investing in commercial teams, media teams, and product innovation. The explicit mention of future strategic acquisition opportunities—albeit smaller than the previous Amobee deal—signals a disciplined approach to inorganic growth rather than large, potentially dilutive transactions.

The required 30-day creditor objection period and need for bank lender consent introduce some execution risk, though these appear to be regulatory formalities rather than significant hurdles. The company's confidence in completing its current buyback ahead of schedule (before November 19, 2025) further underscores its financial health and commitment to capital return.

NEW YORK, Aug. 15, 2025 (GLOBE NEWSWIRE) -- Nexxen International Ltd. (NASDAQ: NEXN) (“Nexxen” or the “Company”), a global, flexible advertising technology platform with deep expertise in data and advanced TV, today announced that it is seeking authorization to initiate a new $20 million Ordinary Share repurchase program (“new repurchase program”), which would commence following the completion of its current program. The new repurchase program is intended to capitalize on what the Company believes is a compelling opportunity to acquire its Ordinary Shares at a discounted valuation, reflecting confidence in its long-term prospects.

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.

As previously announced, and in parallel with its intention to launch a new repurchase program, Nexxen will 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.

The Company also 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.

In addition, Nexxen is exploring targeted strategic opportunities (expected to be smaller in size than the Amobee acquisition) 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.

As an Israeli company, Nexxen must comply with Israeli regulations requiring the Company to await the expiration of a 30-day creditor objection period before the new repurchase program can become effective. While Israeli court approval is not required, the program’s commencement is contingent upon receiving consent from the Company’s bank lenders.

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.

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.

As of July 31, 2025, approximately $7.2 million remained under the Company’s current Ordinary Share repurchase authorization, which is expected to be completed prior to its scheduled end date of November 19, 2025.

About Nexxen

Nexxen empowers advertisers, agencies, publishers and broadcasters around the world to utilize data and advanced TV in the ways that are most meaningful to them. Our flexible and unified technology stack comprises a demand-side platform (“DSP”) and supply-side platform (“SSP”), with the Nexxen Data Platform at its core. With streaming in our DNA, Nexxen’s robust capabilities span discovery, planning, activation, monetization, measurement and optimization – available individually or in combination – all designed to enable our partners to achieve their goals, no matter how far-reaching or hyper niche they may be.

Nexxen is headquartered in Israel and maintains offices throughout the United States, Canada, Europe and Asia-Pacific, and is traded on Nasdaq (NEXN). For more information, visit www.nexxen.com.

For further information please contact:

Nexxen International Ltd.
Billy Eckert, Vice President of Investor Relations
ir@nexxen.com

Caroline Smith, Vice President of Communications
csmith@nexxen.com

Forward Looking Statements

This press release contains forward-looking statements, including forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Forward-looking statements are identified by words such as “anticipates,” “believes,” “expects,” “intends,” “may,” “can,” “will,” “estimates,” and other similar expressions. However, these words are not the only way Nexxen identifies forward-looking statements. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the Company’s plans with respect to its cash reserves, and ongoing and future capital allocation priorities (including with respect to potentially initiating a new repurchase program, continuing to invest in its commercial and media teams and ongoing product innovation, and exploring strategic opportunities), as well as any other statements related to Nexxen’s future financial results and operating performance. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors that may cause Nexxen’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including, but not limited to, the following: negative global economic conditions, including risks related to tariff impacts or policy shifts (including trade negotiations or enforcement actions) that could materially affect market sentiment, consumer behavior and advertising demand; global conflicts and war, including the war and hostilities between Israel and Hamas, Hezbollah, the Houthis in Yemen and Iran, and how those conditions may adversely impact Nexxen’s business, customers and the markets in which Nexxen competes; changes in industry trends; the Company not receiving the necessary approvals to initiate a new share repurchase program; and other negative developments in Nexxen’s business or unfavorable legislative or regulatory developments. Nexxen cautions you not to place undue reliance on these forward-looking statements. For a more detailed discussion of these factors, and other factors that could cause actual results to vary materially, interested parties should review the risk factors listed in the Company’s most recent Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (www.sec.gov) on March 5, 2025. Any forward-looking statements made by Nexxen in this press release speak only as of the date of this press release, and Nexxen does not intend to update these forward-looking statements after the date of this press release, except as required by law. Nexxen, and the Nexxen logo are trademarks of Nexxen International Ltd. in the United States and other countries.

FAQ

What is the size of Nexxen's new share repurchase program?

Nexxen (NASDAQ: NEXN) is seeking authorization for a $20 million Ordinary Share repurchase program, which will commence after completing the current program.

How much remains in Nexxen's current share repurchase program as of July 2025?

As of July 31, 2025, approximately $7.2 million remained under Nexxen's current Ordinary Share repurchase authorization, expected to be completed before November 19, 2025.

What regulatory approvals does NEXN need for the new buyback program?

As an Israeli company, Nexxen must complete a 30-day creditor objection period and obtain bank lender approval before initiating the new repurchase program.

How is Nexxen investing in VIDAA and what's the strategic importance?

Nexxen is investing $35 million in VIDAA to increase its equity stake to approximately 6%, supporting VIDAA's North American CTV expansion and enhancing Nexxen's data and advertising monetization rights.

What are Nexxen's capital allocation priorities for 2025?

Nexxen's priorities include the $20 million share repurchase program, $35 million VIDAA investment, expansion of commercial and media teams, product innovation, and exploring targeted strategic opportunities for growth.