Well the numbers jive as far as ONSM is concerned. At 45 cents, that is just a little over $20 million in cash for the stock of ONSM. Since KITD walked away with just over $28 million since the secondary, KITD might even up the bid a little more to seal the deal and still take on no additional debt doing the acquisition. The numbers add up that the target might be ONSM. Time will tell.
ONSM holding firm up 10% since the rumor began. MMs usually don't allow a stock to trade above the intended take out number. Still a little bit of a premium left in it.
If this happens there will be many pissed off OnStream shareholders.
My guess all considered is 50/50 they are the one.
If it does happen Kaleil will have to put on his best salesman suit to convince the market this is truly acretive.
If it is ONSM I suspect Kaleil has his eye on their iEncode.
The stock action today has more to do with the dilution confusion.
Kaleil is keen on keeping dilution at a minimum, said so again in the CC last week. He has his money on the line too.
Wouldn't surprise me if it was ONSM it the price were .45 per share, and considering the cut in the secondary offering; I'm guessing there is a significant share swap going on here, which would have more to do with the stock price hit we're seeing.
B-roo that stat about the Fortune 1000 companies sounds like the hook here doesn't it?
Bingo! I think you nailed it. Current market cap it $16 m and the .45 takes it up to $20 mil not counting a little debt they show.
I hope you are right. Interesting that Frost and Sullivan picked OnStream as "Entrepeneurial Company of the Year" in 2006
As we know "noted" blogger Dan Rayburn is 'Principal Analyst' for Frost and Sullivan. If this is the company KITD buys Rayburn will have to defend, oh my!
From 2006 award;
"Seventy-eight percent of the Fortune 100 CEOs and CFOs and almost half of the Fortune 1000 companies currently use or have used Onstream Media's services. Onstream Media customers include: AOL, AAA, AXA Equitable Life Insurance Company, Disney, KPMG LLP, MGM, Deutsche Bank, Thomson Financial/CCBN, PR Newswire and the U.S. Government...."
Interesting, Florida is home to Gen2Media (GTWO.ob) http://www.gen2media.com/our-company.php but with a market cap of $20 mil and revs barely $1 mil I would not consider them.
EndavoMedia in Georgia http://www.endavomedia.com/
The acquisition is certainly well hidden, at least for us regular folks that don't have contacts that have "heard" stuff.
Delve or Mutlicast are still my outside picks. Move would be amazing.
Thanks Bombardierg, yes I saw it. Barely generous considering what they know about the company. What does it take to get a conviction buy, overweight or strong buy?
"ThinkEquity initiates coverage on KIT digital (OTC: KITD) with a Buy rating. To see all the upgrades/downgrades on shares of KITD, visit our Analyst Ratings page. KIT digital, Inc. (KIT Digital), through its subsidiaries, is engaged in the business of providing Internet software products and solutions that enable its customers to distribute video content through Internet Websites and mobile devices."
Here is the transcript of the CC the other day.
You notice Think Equity guy was a bit pesky, a little contentious?
Of the three analysts on the call he was the least impressed it seems.
Good luck with your investment. We have a winner here IMO.
Wow Digi, my scan did not go deep enough to get to Move but it makes sense. IPTV in North America was talked about thoroughly in the recent CC and Move is all about that.
$20 mil seems cheap, to cheap for Move but who knows?
Kaleil says (on twitter) he was at Sundance Film Festival so maybe (likely) the SLC trip had nothing to do with the acquisition.
I found this passage, among many interesting ones in the CC transcript.
"But where the “beef” is in the industry in our view is good old-fashioned, heavy-duty use of video. And that is on-deck mobile deployment, that's cable—both hybrid- and closed-network—and some over-the-top telco and ISP deployment of cable TV using IP. And, of course, corporate communication systems, security and surveillance systems, human resource and training—where you are moving a lot of video, and you have to integrate that video with either real cost savings initiative or real revenues.
And that is our sweet spot. We serve that Fortune 500 type of client. We would like to get to a point over the next year or two where we can envision an ad campaign that says “8 out of 10 Fortune 500 companies entrust their IP video needs to KIT digital”. We want to be the Oracle of our space. We want to be deep in the data layer."
"I mean, we've said for a long time now that on an organic basis from here (so excluding acquisition activity for 2010) that we would like to break through some time in that early 2011 period to a US$100 million revenue run-rate. And that is actually something we talked about as long ago as four or five quarters ago—that was kind of a bogey for us."
Amazing, hold on and today was a day to seize some cheap shares.
yea, you're not kidding
New York, San Fran, Las Vegas, Salt Lake, Atlanta, LA
I bet he gets really nice travel perks on the airlines, this guy isn't on the ground more than a day or two.