They will not dilute shareholders under $2 a share that would be insane. Sillerman will not dilute himself that much. Its either bankruptcy or private transaction.
No hope with Sillerman on board
Great concept but structured like an idiot and owned by a greedy #$%$
Private equity can spend $400 million buying all the stock for $100 million and paying off all the debt. In return it would own all the festivals and assets and a business that was estimated last march to have 70-80 million in EBITDA. In addition, Beatport alone could be worth $100 million.
That would be smart so Silly can concentrate on bailing out SFX
Watch volume..good indicator
Stifel and same analyst had this as a buy with a $14 target. Then a $12 price target.. then it was changed to $6 and now $1.....this is your chance to buy before it gets bought
Tullo is a complete and utter idiot...SFXe is bleeding money and despite great assets it is far from out of the woods and its debt levels are high. having said that At $1 its way too low
Stock will be a great buy on this as Silly will end up buying this for $3-$4
i dont trust Sillerman at all. but i do know the assets they bought and the revenue they are generating.
you can buy all the debt and all the stock right now for less than he was offering for just the stock.
The stock price is just stupidly low.
The stock price is considerably undervaluing the assets. Obviously sillerman is slimy but the EBITDA ability of these assets and the assets themselves are worth much more than stock price even with all the debt.
The assets are worth $1 Billion and EBITDa next year will be $80-$90 million.....
First of all the assets that were bought were improved and consolidated since being acquired and expenses are still being reduced with a ton of room to go. EBITDA estimates were $65 million after Currency translation issues reduced by 412 so the company believes it can do $80 million In EBITDA....At 10x that is a $800 million enterprise value
Beatport does over $60 million in revenue with $15-$25 million in profit
of course he overpaid. But there has also been a great deal invested into all the purchased properties that have increased their value. Beatport alone is worth $100 million if not more. The cost structure is being reduced although not very quickly. There is a ton of additional value in marketing contracts and user databases they own talent managemnt firms that control EDM space...Unfortunatelyit is being abused by Silly Sillerman......I think there is value left after all the debt is factored in above $3 to the right buyer
could happen but stock is already discounting that now. $139 million Mkt cap? Total Enterprise value of around $440 million is fire sale......