I know there has been a lot of excitement about the potential for the DreamPlay JV, but I was just reading through the latest proxy statement and saw an amendment to the CEO's compensation package that entitles him to a performance bonus in the amount of 50% of the net income derived from the JV (assuming the company gets at least $15M from it). So the company paid $8M + issued 1.5M shares to NantWorks, AND Nantworks gets a preferred return (i.e. they get paid some unspecified amount before JAKK gets their first penny). Also, JAKKs only has the right to the technology through 2018 after which, assuming it is successful, they will probably have to pay through the nose to keep it. So they paid $8M cash, diluted the share count by more than 5%, spent god knows how much in R+D, and will spend even more in sales and marketing all for a 5 year look at selling toys based on Nantwork's technology. And oh by the way, Nantworks gets to skim the initial profits in some undisclosed amount and anything after that, the CEO of JAKK gets 50% of?!?! No wonder he didn't want to sell the company. It is much more profitable for him to milk it dry for a few more years first. I really want to buy shares in JAKK given the massive underperformance to HAS and MAT and the fact that Soon Shiong (clearly no dummy) keeps plowing in at these levels, but the shameless lining of his own pockets by the CEO makes it very hard. Also, he now gets $13M if he gets fired due to a change of control, essentially lowering the amount that a potential acquirer would pay for the company. Does anyone else here think this is ridiculous?
I still can't for the life of me figure why they had the unforgivable hubris to sneer at the previous $20 buyout offer, and instead wasted a fortune buying shares at that same price themselves. Anyone who isn't familiar with the old saying "cutting off your nose to spite your face" should look it up.....it certainly applies here.
Any future offers at $20 or above should be accepted by management with gratitude and humility.
I did force my finger to buy recently. JaKK's Iron Man kit to the rescue. The movie Box office is racking up kid demand IMO. FWIW I think SOON SHIONG wants to steal this whole company before the earnings improve. You just don't recently plunk down 8 million for nothing?