Case: Magnite, Inc.
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NEW YORK, NY – 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 This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling 212-329-8571.  

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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. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(212) 329-8571
(212) 687-1980
Fax: (212) 687-7714
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4700
Fax:  (415) 772-4707
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it