PR Newswire | Jan 7, 2021 08:04PM EST

01/07 19:04 CST

Investor Alert: Kaplan Fox Investigates Magnite, Inc. (MGNI) NEW YORK, Jan. 7, 2021

NEW YORK, Jan. 7, 2021 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating potential claims against Magnite, Inc. ("Magnite" or the "Company") (Nasdaq: MGNI) for violations of the federal securities laws.

On January 7, 2021, after the market opened, Spruce Point Capital Management, LLC ("Spruce Point") issued a report titled "A Repellent Investment" that states "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."

The Spruce Point report further states that "[w]e 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." The full report can be downloaded and viewed at www.sprucepointcap.com.

On January 7, 2021, Magnite shares declined as much as 13% from an opening price of $26.94 per share, and closed at $25.61 per share, a decline of $1.70 per share or over 6% on heavier than usual volume.

If you purchased shares of Magnite and would like to discuss our investigation, please contact us by emailing jcampisi@kaplanfox.com or by calling 212-329-8571.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, Oakland, CA, Los Angeles, Chicago and New Jersey, has decades of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:

Jeffrey P. CampisiKAPLAN FOX & KILSHEIMER LLP850 Third Avenue, 14th FloorNew York, New York 10022(212) 329-8571(212) 687-1980Fax: (212) 687-7714E-mail: jcampisi@kaplanfox.com

Laurence D. KingKAPLAN FOX & KILSHEIMER LLP1999 Harrison Street, Suite 1560Oakland, California 94612(415) 772-4700Fax: (415) 772-4707E-mail: lking@kaplanfox.com

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SOURCE Kaplan Fox & Kilsheimer LLP