With over 500 data brokers in California facing privacy challenges, Reklaim offers an M&A solution that allows many to become compliant and remain solvent
NEW YORK, Sept. 14, 2022 (GLOBE NEWSWIRE) — via InvestorWire — Reklaim (OTCQB: MYIDF) (TSXV: MYID) (“Reklaim”), the destination for consumers to access and reclaim their data, announces plans to explore strategic M&A deals with data partners that are struggling with compliance issues in the face of a rapidly changing privacy market. Privacy laws such as GDPR in Europe and CCPA & CPRA in California require that data companies obtain explicit consumer consent to remain compliant in selling their data. Additionally, large data firms such as Oracle and others have recently become the focus of litigation for their data practices. Many firms operating in the data space today may not have the tools or the interface to communicate with consumers. As a result, these companies may be exposed to potential litigation and business risk in the near future. Furthermore, as more brands look to replace their existing data suppliers with those adhering to new privacy standards, there may be pressure on these firms to find a partner to solve this compliance gap. Reklaim is that solution.
“The global data market has historically been built on collecting data unbeknownst to consumers and arbitraging it to as many different firms as possible for as much money as possible,” said Neil Sweeney, founder, and CEO of Reklaim. “This is quickly coming to an end, not only with accelerating changes in privacy legislation but also in how companies such as Google and Apple are quickly reducing the amount of data leaking from their products.”
In California alone, there are over 500 data brokers that few have ever heard of before, all selling consumer data. In the face of increased data privacy legislation, Reklaim believes many of these firms will suffer significant revenue declines, and those without a compliance partner will likely cease to exist. Reklaim, which captures and maintains consumer consent, is the partner that can provide the necessary compliance required to operate in the emerging privacy landscape. Over the coming quarters, Reklaim plans to target those data companies looking to solve this issue strategically, which can be accretive to Reklaim’s revenue and cash flow.
The dramatic shift is underway already and being felt increasingly across the business landscape. Facebook announced in Q4 2021 an expected $10 billion write-down on revenue due to Apple’s changes that prevent user tracking on external applications. Additionally, Oracle was recently the subject of a $5 billion class action suit in California for harvesting data on unsuspecting users across the USA. When combined with the removal of the third-party cookie from Google’s browser – a small piece of code that is responsible for 65% of the consumer targeting on the internet – as well as accelerating state-level privacy changes, including amendments in Virginia, Nevada, Connecticut, Colorado, Utah, and others, the pendulum of privacy is swinging increasingly faster toward consumer inclusion. Reklaim is poised to consolidate this industry with its strategic plan.
To read Reklaim’s most recent Q2 financial release, click here: REKLAIM ANNOUNCES Q2-2022 FINANCIAL RESULTS WITH REVENUES UP 277% YEAR-OVER-YEAR AND 65% QUARTER-OVER-QUARTER
About Reklaim Ltd.
Reklaim is driven by consumer data and the evolution of privacy. Offering compliant, zero-party data to Fortune 500 brands, platforms, and data companies, Reklaim allows consumers to visit the platform, confirm their identity, and unveil data that has been collected and sold for years without the consumer’s explicit consent. Reklaim enables consumers to take back control of this data by setting up a Reklaim account through which, should they choose to, they can be compensated for their data or choose to protect it via a suite of privacy tools. To view more information about Reklaim, visit https://investors.reklaimyours.com.
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Ira Levy, CFO
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