DCM Capital Ltd., which opened a trading venue offering analysis of posts on social networks such as Twitter Inc. and Facebook Inc. (FB) last month to help traders gauge market mood, put itself up for sale in an online auction.
The company published a sale prospectus on its website with a guide price of 5 million pounds ($7.9 million). The online auction started today and ends on Feb. 18, DCM said. The highest bid as of 3 p.m. was 1 pound. After the auction closes, the winner will be asked to deposit 10 percent of the offer and DCM will then allow access to its books for due diligence. Bids are non-binding, the company said.
“Twelve months ago we put a team together to build the world’s first social media, investor sentiment analysis trading platform,” DCM said on its website. “Now we move onto our next project, to successfully use social media to publicly auction our company and innovative technology to the highest bidder.”
DCM Capital, a London-based company formerly known as Derwent Capital Markets, started a hedge fund using social media to gauge sentiment in August 2011. The Derwent Absolute Return Fund closed three months later.
Last month, the company opened a spread-betting platform called DCM Dealer that included a feature to calculate sentiment for individual stocks, indexes and commodities. An algorithm gives securities a rating from zero to 100, where the top end indicates the most positive feelings from social media.
The winner of the auction will get the entire issued share capital of DCM Capital, its assets, intellectual property, technology, trademarks, branding, domain names, licenses and software, the company said in the prospectus.
An external spokeswoman for the company wasn’t immediately able to comment. Calls to DCM Capital weren’t returned.
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