Perion Networks Ltd. tumbled the most in 14 months in New York on concern its partnership with Google Inc., which allows the Israeli company to package the world’s no. 1 search engine in its products, will be terminated.
Perion sank 8.6 percent to $10.76 in New York on trading volumes that were almost seven times the stock’s three-month daily average, according to data compiled by Bloomberg. The decline was the steepest one-day slide since Nov. 16, 2011.
The Tel Aviv-based company corrected its annual report today, clarifying that the expiration date of its partnership agreement with Google was Jan. 31 and not Jan. 1, as was stated on one page of the document. Bloomberg Television said in a report aired yesterday that the Google deal expired Jan. 1. The company is in final discussions over the renewal of its pact with Google and will update investors before the end of the month, Perion said in its statement.
“Perion is selling off today on concerns that its contract with Google has not been renewed,” Jay Srivatsa, an analyst at Chardan Capital Markets LLC in New York who has a buy rating on the shares, wrote in an e-mailed report today. “We further expect that Perion will receive its renewal from Google before the current contract expires.”
Google spokesman Aaron Stein said in an e-mail that the Mountain View, California-based company had no comment on Perion’s contract as a third-party distributor of its search engine.
Perion shares traded in Tel Aviv declined 4.7 percent to 42.50 shekels, or the equivalent of $11.40.