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eUniverse, Inc. (EUNI) Message Board

  • irbbping irbbping Feb 5, 2002 7:59 PM Flag

    L 90 AQ

    Help me out here folks. In looking (granted superfically) at the Co being bought out, their record does not seem as near as strong as EUNI, why is this a good deal for EUNI again and what earnings is it supposed to bring to the bottom line in the 1st fiscal year? If this has all been discussed before just give me a post #.

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    • It is GOOD deal because L90 is being bought with its own money.

    • You're not alone in your skepticism. During the EUNI conference call, an LNTY analyst tried to get to the bottom of it, and she had to ask her questions several times because she kept getting either evasive answers or no response at all.

      The one thing I would see as positive about this acquisition is that EUNI gets the much stronger LNTY brand, which makes them a better acquisition target after the merger. Of course, there are those who might argue that LNTY's brand isn't worth all that much and that they already sold themselves to DCLK a few months ago. Since LNTY's going to sell for well under $2 despite its large reach and is funding the majority of that themselves, there may be truth to that arguement.

    • Go to EUNI website and click on investor relations and you will see a webcast where the mgmt discusses the LNTY acq and why it's a positive. Also my post 1009 is a crude conceptual framework which explains why LNTY can be profitable at EUNI because EUNI can eliminate alot of the overhead costs and can cross sell the products so that 1 + 1 can be more than 2.