Money McBags had some thoughts on the latest shelf yesterday, but for some reason Yahoo won't let him post the link here.
Anyone know what is going on with Yahoo?
Thank you for that bit of info Dan. I think I will add to my KITD holdings Monday.
If BC has turned down $500 mil then KITD is undervalued by by 1/2 maybe 3 times the current price.
Some wonder why work your stocks late on a Saturday night. That question has been answered.
Have a nice weekend Dan.
I know of two companies who have talked to Brightcove about acquiring them and the numbers given back were in the $500M range. I'm not saying they can or can't get that, just stating that's what the investors are looking for and have, so far, turned down offers that would trump $250M from KIT.
I have no clue what they plan to do with the money, but I'm not sure why everyone seems to think they must be acquiring one big company with it? They could acquire multiple, smaller companies with it. They could simply hold on to a large portion of it etc.. there are a lot of options.
"Brightcove didn't raise $100M in fudning to then sell the company for $250M."
How much of that has BC burned through? Double return in this environment might be the best they can expect.
How many of the companies bought out by KITD had investors hungry for that kind of return?
Not sure why this idea prompted a three post response from you Dan. Anything BC sure gets a quick and detailed response from you.
Accel may want ten times return but those kinds of returns are prehistoric thinking.
Ten times probably puts BC in the .05 bil to $1 bil valuation on IPO or sale, crazy. Look at KITD currently $250m market cap give or take and it's understood their revs are much higher than BC.
KITD is severely undervalued if we are going to give BC such a high multiple.
KITD is buying all kinds of companies in the OVP arena. FeedRoom and Multicast come to mind.
Don't forget too Brightcove is a competitor in the enterprise space.
Dan, the $250,000,000 shelf is that high for a reason. I don't know why Kaleil wanted that much but we have all learned something about KITD. They buy companies. Who else out there is worth a quarter billion dollars?
KIT's Media suite platform only accounts for 20% of KIT's revenue, but has 800 of the 1080 total customers. The VX Enterprise suite has 300 customers 90% of which are SaaS based.
Brightcove does not license their software/platform to companies directly like KIT does. The two companies have some overlap, but not much. Most of KIT's and Brightcove's products are VERY different.
So yes, when it comes to how the industry defines an "OVP", Brigthcove is first. Could KIT be first in another classification, possibly, depending what it is.
Too many people on this board want to compare KIT to Brightcove. They have very little similarities in their product portfolio. I have an account from KIT to use their platform and it is very different from Brightcove's. You have to use these services/platforms and really look what the companies offer, who they offer it to, what problem they are solving etc..... before you can comape one company to another.
That thought had definitely crossed my mind as well...
Building a roll-up company to be acquired is one thing... it's a great strategy if it's the right 'in-demand' type of company.
However, I think there's a point where you build something 'too large' to be deemed an effective acquisition... not because the value isn't there, but because the price tag (given the roll-up growth) simply becomes too high.
Think about it this way... when they were forecasting $100m in sales, a sub $1b pricetag seemed realistic... HOWEVER, now that they're probably well over $100m (maybe even as high as $150m.. conjecture on my part), does the potential growth multiple then discourage potential suitors who don't want to pay a higher multiple than they would have before the 'masterpiece' was fully built?
Interesting thought process, that's for sure.