{
  "docId": "019dd923-622c-750b-8b99-58801594b94c",
  "docSlug": "9551be67f14d",
  "documentTitle": "Perion Network Ltd. (PERI)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-05-23 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 102,
  "pageCount": 127,
  "prevPage": 101,
  "nextPage": 103,
  "slideType": "comparison_table",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 24,
  "notes": "The slide uses color coding (red/yellow) to highlight problematic valuations and settlement status.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "data_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b99-58801594b94c/102",
  "deckHref": "/decks/019dd923-622c-750b-8b99-58801594b94c",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b99-58801594b94c.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-58801594b94c#slide-102",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Spruce Point has determined that two of three transactions completed by PERI have fallen below planned targets.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-203b-7073-9f2f-4b52d9927a5c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "contingent payment obligation: $9.1m",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-203b-7073-9f2f-4da383fb2fa9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.17
      },
      "kind": "paragraph",
      "text": "Spruce Point has determined that two of three transactions completed by PERI have fallen below planned targets. By looking at the accrual for the contingent payment obligation, we see that both Content IQ and Pub Ocean have fallen below the initial valuation. Pub Ocean was settled for $9.1m in 2022, below the initial valuation and significantly below the $17m maximum payment level. Furthermore, we find a large revision to Vidazoo's initial earn-out valuation and troubles with Content IQ's reporting. Why is PERI continuing to report the fair value of the Content IQ contingent payment obligation when it is more than 2 years past the date of closing?",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "44cde1a9-ec4e-49ee-a6fd-e1bd76e24429",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.94,
        "x": 0.03,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "Perion 20-F Reports (1) Between 20-F reports, PERI revised its disclosure about Vidazoo's estimated initial fair value... (2) In Q1'23, PERI disclosed a $13.3m contingent acquisition payment...",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5a80dd56-daa3-4325-9a96-c2d7e7142a0f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.48,
        "w": 0.94,
        "x": 0.03,
        "y": 0.39
      },
      "kind": "table",
      "text": "Analysis of Contingent Payment Obligations table showing Company, Earn-out Period, Max Earn-out, Initial Value, and Fair Value over time.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "58135f25-0b60-4031-8ea3-b4d66d1700bc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.04
      },
      "kind": "title",
      "text": "Based On An Earn-Out Analysis, Recent M&A Deals Appear To Be Struggling",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fb02837f-87c7-4229-be6a-39c1a6d8d65b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "81284dcf-e71c-4910-a5bd-fa3dffb6be35",
      "evidence": "The slide explicitly questions the validity of reported fair values for contingent liabilities.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 127,
      "from": 6,
      "beatId": "31d83761-6e14-4d29-a0aa-1ff8a80344ff",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "Expose Contradiction",
      "beatSlug": null,
      "evidence": "The deck spends most of its pages exposing contradictions and inconsistencies in PERI's financials, partnerships, and growth story.",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [
    {
      "to": 127,
      "from": 6,
      "name": "Logic Chain",
      "slug": "01-logic-chain",
      "bestFor": "Skeptical audiences, controversial recommendations, rigorous analysis",
      "matchId": "e972ccdf-c217-46cb-9470-ba2f8b94de5a",
      "evidence": "The deck presents a series of logical and coherent arguments to build a case against PERI.",
      "position": 0,
      "objective": "To present a logical chain of evidence and reasoning to support the conclusion of significant downside risk to PERI's share price.",
      "structure": "Premise 1 (Accepted truth) -> Premise 2 (Observed fact) -> Therefore... (Inevitable conclusion)",
      "confidence": 0.8,
      "description": "Build an airtight chain of logic where each premise leads inevitably to the conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}