This leads me to believe we will continue to see sizable EBITDA losses and negative cash flows going forward. They want to perhaps sell some of the assets to grow the Kazzaa business ? Well if they are going to go that route, why dont they sell off the entire business. They could easily shop it to Pandora, Spotify etc etc. Even if they sell off part of their assets, they will continue to draw the average higher up manager fees of 25k per month, of course that will accelerate the cash bleed, whereas if the whole biz is put up for sale now...that cash bleed would not continue
Of course the answer to this is obvious..They would all be out of work..go figure
1, I did hear the words from Musci re "significant announcements from ad agency coming" in the next few months 2. They are down to 40 employees now-good sign 3. They said there will be modest revenue growth q1 over q4 in the ad agency biz..Modest really means non significant 4. They said their product development costs with respect to KAZZA will moderate a wee bit from the 1.5 million in Q4. This will not help b/c these costs savings will be offset by the growth in 3rd party media costs with respect to growing the Kazzaa biz 5. Most importantly, In the q and a seesion, Musci di9sclosed to Gilliam that the revenue levels q1 over q4 will be the same..ie 7.8 million, I can assume..This is not good at all. 6. Re the restructuring efforts, the most potential to save is 50% of 6.5 million.these are the numbers floated in the last cc in response to Gilliams query, but even if that was the case...best case scenario we will still bleed 2-3 million..ie..a 7.8 m Q1 revenue base and a cost expense base of 10-11 million (that assumes the maximum of restructuring savings and a very modest uptick in 3rd party media acquisition costs, and modesrate savings on the product development front) This co. is exacyly where VTRO was about 15 months ago..can they turn the corner? VTRO did, and maybe these people can, but Pete Corrao the CEO of VTRO was a real passionate guy and very enthusiatic about VTRO prospects, I do not see this from this management team. That said, I still am holding out for a turnaround but not as much as I was with VTRO. I think that if they shopped the WHOLE COMPANY for sale right now, us shareowners would fare alot better than if we waited for a turnaround and saw this team continue to milk the co. cash levels on a business that is negative cash flowing to the tune of at the very least 2-3 million a quarter...also how many of these guys are costing us 25k per month..3? 4? 5? The 10k did not have their salaries..instead they will file an ammendment to the 10k to disclose their salaries at a later date. I will post each of the top managers salaries when they become publicly available. but suffice it to say..all these guys collectively are costing us alot of money. Again at the risk of sounding like a broken record they should SELL THE WHOLE COMPANY NOW. and give us all a liquidating dividend ..