Buyout chatter in past when stock was $10+, now no one interested? Cheaper by $1 BILLION
Buyout chatter in past when stock was $10+, now no one interested? Company has become cheaper by $1 BILLION now that company's market value is barely $200 mln. Why isn't anyone like GOOG, AOL, FB or MM showing any interest? Not that any investor would like to see buyout occur under $20 imho
It would still take at the very minimum 8x forward sales to buy these guys. That would just get the boards attention....it would take a higher multiple to get them to bite.
Take a look at the M&A in the closest comparable industry the past 2 years -- avg buy out was 10-12x forward revs.
Velti currently trades at .75x revs .
Do the math on that one. Think you will understand why the lowest price target on Velti last May was $20.
When the M&A consolidation fever hits the market - we will be a long long way from here.