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  "documentTitle": "Stroer SE & Co. KGaA (SAX)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Muddy Waters Capital",
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  "presentationDate": "2016-08-10 00:00:00",
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      "text": "Muddy Waters estimates that Mr. Müller and Mr. Ströer made a profit of more than 20 million euros when they sold freeXmedia via Media Ventures to the company.",
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      "text": "One of the three pillars of the digital strategy was the purchase of Ballroom International in 2013, which primarily runs the online advertising business in Turkey and Poland. Muddy Waters claims to have discovered a considerable number of cases of fraud and designated the internal investigation Project Zero, but never disclosed the cases of fraud. Ergo the following questions:",
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      "text": "2.9 While ProSieben invests in companies, what do I gain as a Ströer stakeholder when Mr. Müller and Mr. Ströer receive high extra payments in order to arrange investments?",
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      "text": "2.5 Ströer also answered that the transaction had been reviewed by independent consultants. Why has Ströer not published any reports, comments or professional opinions on the transactions? I am hereby requesting that all of these opinions and reports be disclosed, indeed now at the general meeting or via the homepage.",
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      "kind": "paragraph",
      "text": "2.7 Is it correct that Media Ventures invests in companies and that this typically and at least partially occurs through payment in kind, i.e. advertising?",
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      "text": "3.2 How much turnover, EBITDA and profit in Turkey stem from fraud?",
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      "text": "Ströer had announced that Dirk Ströer would leave the board of management toward the end of 2015, which he did. In fact he rejoined the board of management at the beginning of 2016 without it becoming public knowledge.",
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      "text": "2.6 Is it correct that Media Ventures pays only 10% of the list price for advertising which goes through the Ströer network?",
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      "text": "3.1 Was there an investigation of potential cases of fraud in Turkey? Was it called Project Zero? If not, then what was Project Zero? Was there a written report on the investigation? If not, why not?",
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      "text": "Media Ventures has an agreement through which it purchases advertising from Ströer at a reduced price and which it then passes on to the companies in its portfolio.",
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      "kind": "paragraph",
      "text": "Thus to Question 1.5: Why did he leave the board of management for just a few months?",
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      "text": "Muddy Waters estimates that Mr. Müller and Mr. Ströer made a profit of more than 20 million euros when they sold freeXmedia via Media Ventures to the company.",
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      "text": "Ströer responded to this accusation to the effect that the purchase price was not distributed to all three companies which Ströer at that time had acquired through Media Ventures. That leads to question 2.2: How much did Media Ventures pay in cash, and not in payment in kind, for the other two companies that it then resold to Ströer?",
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      "text": "2. Aggregate This applies to transactions with related persons and companies.",
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      "text": "2.3 How much money – so again no payment in kind – did Media Ventures invest in companies before they were resold to Ströer?",
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      "text": "3.4 Did Ströer turn to the police or public prosecutor's office with the findings made in Turkey?",
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      "text": "3.3 Why did Ströer not rectify the results of the digital business in Turkey due to the cases of fraud disclosed? How much responsibility do the company, the board of management and management bear for the failure to rectify?",
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      "text": "2.8 Is it correct that the companies which receive payment in kind from Media Ventures often pay an administrative fee to Media Ventures to partially cover the advertising costs invoiced by Ströer Media Ventures? How high is the typical fee in percent which Media Ventures pays to Ströer?",
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      "text": "2.4 How high is the actual amount in cash which Media Ventures paid for freeXmedia? Muddy Waters estimates it at 1.5 to 2 million euros.",
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      "text": "Question 1.4 concerns the Sambara Foundation. What is the relation between Dirk Ströer and the Sambara Foundation? Who benefits economically from the Sambara Foundation? Why did Mr. Ströer transfer stock to the Foundation without any quid pro quo?",
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      "text": "1.6 During the time he was not a member of Ströer's board of management, was Mr. Ströer or companies he is affiliated with implicated in any business involving shares or securities from Ströer, and what type of business was it?",
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      "text": "3. Aggregate: Ballroom International",
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      "text": "On that, question 2.1: Does Mr. Müller agree that it was wrong of him and Mr. Ströer to reap such a high profit from a company that was in their possession for only a few months?",
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