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RealNetworks, Inc. (RNWK) Stock Plunges After Announcing Offering

Tuesday, April 27, 2021 09:30 AM | Kyle Depontes

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RealNetworks, Inc. (RNWK) Stock Plunges After Announcing Offering

What is going on with RNWK?

RealNetworks (RNWK) stock plummeted in pre-market trading today after the company announced it had commenced a proposed underwritten public offering of common stock. Shares of RNWK fell 19% to $2.76 as of Tuesday at 9:14am.

What does this mean for RealNetworks?

RealNetworks public offering  will benefit the company by allowing for an injection of funds into areas of RealNetworks choosing. While RNWK hasn't specifically mentioned where they will direct the proceeds from the offering, they have stated they will use it for "working capital and general corporate purposes."

Although the public offering will provide extra funds for RealNetworks, it will ultimately lower the stock price as new shares are added to the existing amount. This dilutes the overall share price as earnings must be divided up among a larger number of shares.

RealNetworks plans to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the public offering at the offering price. Street Capital Markets, LLC is acting as sole book-running manager for the offering.

The company is known for SAFR, its facial recognition platform for live video that increases surveillance by allowing security personnel to prioritize feeds.

Short-Term Technical Rank - 56

RNWK has a Short-Term Technical Rank of 56. Find out what this means to you and get the rest of the rankings on RNWK!

RealNetworks Inc is a digital media services and products company offering video sharing, casual games, direct-to-consumer ringback tone, and RealPlayer. The company also develops and markets software products and services that enable the creation, distribution, and consumption of digital media, including audio and video. It operates its business in segments which are Consumer Media, Mobile Services, Games. RealNetworks has operations in the United States, Europe, and the Rest of the World.

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