They could have made an announcement in the Fall that they were pursuing strategic alternatives for the Viggle App with 10 million registered users. The stock would have exploded. Instead they surprise everyone with a fire sale at $4.7 million in stock sale. This from a CEO who floated his own $40 million bid for Wetpaint division just this MArch in a blatant attempt to put a stupid valuation on a #$%$ business. What does he do with the jewel...fire sale.....just dumb.....
It is held in NYC and has a huge following of institutional investors. This is a top tier conference to attend.
Here are a number of examples. He controlled a company called CKXE which was a public company that he offered to take private in a takeover. When time to fund came up he backed out and stock collapsed and was bought by private equity at a huge discount. he then took SFXE public at $13 a share two years ago and mismanaged it. He offered to buy all the company a year later at $6. When stock fell he lowered his price to $3 then backed out the day of funding and the stock went to .20 cents. Now Viggle. He offered in March of this year to buy 25% of Wetpaint for $10 million and have the option to buy the remainder at another date for total consideration of $40 million. Guess what..that was a complete fraud..an attempt to put a stupid valuation on a terrible web site. He then allowed expenses to bleed money from Viggle while user numbers balloned creating the potential for a huge media company worth $100-$200 million..instead he mismanaged and sold the App for $4.7 million in stock......
your points are all valid and i would agree with most...That doesnt change my premise that Sillerman is an idiot and his incompetence ruined the Viggle APP and therfore he wins the worst CEO of the year...he destroyed both companies by his inability to account for corporate expenses. Viggle was a simple arbitradge advertising dollars vs. rewards....the difference going to shareholders.
He destroyed both Viggle and SFXE
The runner up was Sillerman for SFXE...two companies totally destroyed by incompetance and stupidity
when a company is wildly overvalued and it does a reverse split then almost every time the stock continues to fall...stock splits often mark the top in many rising companies as well...this is a $10 million company with $100 million in assets...a reverse split may very well happen..but it is irrelevant..the stock is cheap
Fantasy Sports will remain....it will just be regulated across different states. That is what all the big players have been advised by their lawyers etc....
Viggle is poorly run and mismanaged..splits and reverse splits are talked about by the ignorant....they have no material change to anything but the stock price..valuation remains the same. Viggle is a $10 million company with $30-$45 million in assets.
if your worried about reverse split than you should not invest in any company because it has no material effect on company
like buying cisco at 40 as it climbs to $60 then goes to $10. Waste of billions.