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  "documentTitle": "Magnite, Inc. (MGNI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-01-07 00:00:00",
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      "text": "We believe investors are being misguided by Magnite’s growth prospects, and see 25%-50% downside.",
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      "text": "Magnite, Inc (Nasdaq: MGNI) was formed in early 2020 by a merger of two advertising technology companies - Telaria (formerly Tremor Video) and Rubicon Project. The merger was predicated on cost, and not revenue synergies, and bringing a Connected TV (“CTV”) product to Rubicon that it couldn’t build alone. Spruce Point finds evidence to suggest that both companies were hampered with business and accounting struggles prior to the merger. We believe they have continued to mask challenges with inaccurate financial reporting. Magnite’s pro forma organic sales are down -1% YTD with peers +16%. Multiple customer interviews all tell us that Magnite does not have much quality CTV inventory to currently sell. A recent subtle change in Magnite’s financial covenant from “Adjusted EBITDA” to “Maximum Cash Burn” suggests further pressures could lie ahead. Adding to concerns, Rubicon’s CEO failed to promptly disclose an SEC inquiry at Millennial Media (NYSE: MM) where he was CEO, while Magnite’s CFO held the CFO role at Spot Runner, accused in a lawsuit of running a pump and dump scheme. Magnite is being promoted by an analyst with a FINRA citation and checkered past that includes hyping the AOL / Time Warner merger, a former tech media darling that settled SEC accounting fraud charges. We believe investors are being misguided by Magnite’s growth prospects, and see 25%-50% downside.",
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      "kind": "table",
      "text": "5-row table detailing concerns: Dubious Management, Dubious Financial Reporting, Dubious Accounting And Leadership, Dubious Stock Promotion, Excessive Valuation: Poor Risk / Reward",
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      "text": "Spruce Point Estimates 25% - 50% Downside ($14.75 - $20.00/share) For Magnite (MGNI)",
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