NEW YORK, Aug. 31, 2012 /PRNewswire/ -- On August 21, 2012 RTG Ventures, Inc. (OTCQB: RTGV) Board of Directors issued a moratorium on the issuance of any common shares for three months in order to attract value based investors and identify partnerships with like-minded entities. The Board believes this action will address the undervalued share price and is a key component in an overall plan to limit short term market tactics which do not serve the objectives of building a sustainable business and increasing shareholder value.
Reggie James, SVP Marketing Communications said, "As cited in the recent Letter To Shareholders (http://bit.ly/LwhMTH) and subsequent PRs, the public market continues to struggle with the valuation of digital media technology businesses. Recent valuations of Facebook, Groupon, Zynga and others illustrate that while private company investors understand the dynamics of building Company fundamentals, the public market remains short-term oriented and can't make up its mind what to measure. So the dialogue continues. As a result, the valuations range from a multiple of earnings, such as: Groupon x12, Google x14, Facebook x31, Linked-In x79 and Amazon x100. Using price: earnings ratio, Facebook x69, while Linked-In x852. By comparison, the market average for companies in the Standard & Poor's 500-stock index is about 16. In the manufacturing model, one valuation number was the criteria, not a range."
James added, "RTG is applying core values to building a 21st century digital media technology business. That strategy was reinforced in a recent article in the WSJ, in which new Yahoo CEO, Marissa Mayer has ordered that the daily stock quote be removed from the Company's internal website and 'to focus on users'. Another recent article in the NY Times entitled, 'When the Network Effect Goes Into Reverse ' on August 17, 2012, stated: 'Growth, not profit is what matters at the early stage in the life of Internet business."
RTG continues to share industry information as it evolves in order to provide shareholders the context of the business which is long-term and value based. The whole divergence in valuation within the industry supports RTG's buyout approach of Brand Entertain in mid-June. Valuing the venture, with several individual platforms in a year's time, will be based on results, not projections and will ensure shareholder value. The Business Plan continues to be executed, with its business development initiatives, in conjunction with its partner, Brand Entertain.
About RTG Ventures
RTG Ventures offers Music & Entertainment Technology Solutions and Digital Marketing Services. Harnessing the strength of its digital marketing agency, that has a trusted reputation over the last 8 years, the company has applied its knowledge process in developing cutting edge technology platforms for web, mobile and tablet devices.
Using Digital Clarity's application in the Marketing and Social arena, RTG Ventures offers a unique value proposition of intelligent, analytics based technology solutions with the support of an experienced digital marketing team. RTG Ventures, Inc. is an OTC:QB Company. Symbol RTGV.
About Brand Entertain
Brand Entertain develops strategic, multi-channel branded entertainment properties and ventures that drive consumer engagement and grow product sales for brand partners online and in-store. Brand Entertain plays the roles of developer, packager, co-producer and licensor when it comes to original branded entertainment and media platforms.
Brand Entertain provides the strategy, architecture and strategic partner development necessary to finance and operate economically viable properties.
Safe Harbor Provisions
The foregoing contains certain predictive statements that relate to future events or future business and financial performance. Such statements can only be predictions, and the actual events or results may differ from those discussed due to, among other things, those risks described in RTGV's reports filed with the SEC. Opinions expressed herein are subject to change without notice. This document is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy any securities in any state. Past performance does not guarantee future performance. Additional information is available upon request.
Investor Relations Contact Information
First State Internet Services LLC
Wilmington, DE 19804
SOURCE RTG Ventures, Inc.