In theory this should have little effect on RENN based on their investments and holdings. However it's going to be manipulated so pick up more shares when it happens.
the full letter but of course Yahoo seems to have already deleted it. And they wonder why their business is going down the toilet. You can find the letter on Street Insider.
Sentiment: Strong Buy
Surprised that they did not give out contact info for other shareholders to reach them....
Sentiment: Strong Buy
Thanks for posting this Jeff. I am surprised that Benzinga did not post the actual letter too. Unhappy RENN shareholders will be filing a petition for "appraisal rights" in a Cayman Island court and then simultaneously requesting injunctions in that court and a U.S. court to have all proceeds for the sale of any U.S assets (SoFi, etc). frozen. Chen is in a lot of trouble. And with the markets getting weaker and weaker companies like SoFi are going to try to get their IPO done sooner rather than later so RENN's price may just start rocking with NOTHING AT ALL that Chen can do about it. CNBC has a list on their site today of the top 50 Disrupting companies and at least 2 are RENN backed (SoFi and Motif). Chen is in trouble.
They can write sll the letters they want. This was a scam since day one. Chen has total voting rights, so the board is totally helpless as if they would anyway. Just like i told shareholders years ago ,their money is gone.
Chen controls the company so as long as the BOD will rubber stamp whatever he wants then he can BUY the company. However, that will not stop shareholders such as SB from exercising their appraisal rights in a Cayman Island court. Chen is not as scott free as some people think he is but Chen knows this which is why he is surely negotiating with SB now.
I believe that was a 10 mil share option exercise. Now, that he has the offer on the table, can't buy anymore.
Yes, deal is going thru for sure. Period of uncertainity helps Chen even more. Like I said, all they need is $250 mil bridge loan to close the deal.
I agree. I cannot see how this is a bad development at this price. Certainly points to the deal going through at the very least. That is a 15% return. Back in.
Regardless what happens...stock is undervalued right now. Nobody knows what's really up. Softbank is going to get the best deal they can get. Chen will get the best deal he can get. Should be good for current shareholders. Hopefully :/