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Skullcandy, Inc. Message Board

  • michaelsistowicz michaelsistowicz Jan 15, 2013 3:22 AM Flag

    VFC - SKUL merger / buyout

    VFC is the likely potential buyer of SKUL... Read their profile as well as connection (now occurring with SKUL board member)

    I would expect the deal to happen soon (within a year)

    What the premium for SKUL will be is ???


    Sentiment: Strong Buy

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    • I would think select companies would be interested in buying Skul for its product and brand. The current low share price may generate some buyout buzz, but I would feel pretty confident that management would have no interest selling at below its IPO price, let alone the recent prices. As of today, this is not a struggling company with a weak balance sheet like a Billabong. Skul management believes in this company and has an ego as to what its worth.

      These guys like their company and want to see their brand succeed regardless who owns them. So I don't think they're selling out to just anyone, but what can help build the brand (Nike, Under Armour). Many large companies with cash just sitting there generating no return. I think they're weighing the possibility of writing a $800 mil check which could generate immediate return on investment as opposed to sitting in a checking account.

      • 2 Replies to chaz16669
      • I agree Chaz... I do think they are looking at possible suitors at this point however. It will be interesting to see how the Balance sheet and guidance going forward is in February. If there still is a "growth" story things will get interesting quick.

        These guys do have an ego I agree. I also know that these guys get together with certain entities at trade shows etc. and start throwing around possibilities of partnerships, numbers etc. after a few drinks. The CES and the Miami conference surely created some possibilities.

        Sentiment: Strong Buy

      • 'Skul management believes in this company and has an ego as to what its worth'. I don't want to be negative, I want to be realistic. Unfortunately, investors don’t believe this management any more. That is the reason why short scould cover most of their shared by buying investor shares and the stocks plunge under $7. The report will show in next few weeks. There is no grantee it does not go down more.

    • The benchmark for valuing retail companies via acquisitions is about 15 times EBITDA. Skul's EBITDA for 2012 should be around $55mil with 2013 projected at around 65 mil.

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