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......
They bought ID&T for $130 million in 2013. Beatport was purchased in Feb 2013 for $52 million. Totem OneLove promotions was bought for $75 million. I-Motion was purchased for $12 million, Paylogic=$16.2 million. Miami Marketing Group=$16.9 million Made Event=$35 million. For $337 million. In addition they bought Disco Donnie presents, DayGlow, Fame House, Arc90, Tunezy for another $150 million. Just those alone were purchased for close to $500 million. Beatport itself has grown revenue tremendously and is probably worth $90-$140 million alone. Granted they have $300 million in LT debt and other liabilities....to the right buyer there could be big significant value.
The stock should be $3-$4
More panic selling for sure but then the real buyers who have done their home work will see the underlying value despite the horrible CEO et all
The assets of this company are very valuable. Granted there is also $295 million in LT DEBT.
He will partner with private equity and buy the entire company for $3 to $4 and restructure it and make a fortune.
He will not issue more shares at this price. Also the huge festivals happen in the next few weeks where they will make a ton of money. He will not borrow more money nut partner with private equity to buy back the entire company cheap and then restructure it and make a fortune.
He will buy the company for $3-$4 saving himself over $200 million from set upon bid
Those that were betting on a deal all sold when they saw the deal was not going to happen and $5.25 would not be seen. All the arbitradge guys lost and lost on Friday. Now the new players betting on another deal will bid the stock back up towards $4 the price a likely new buyer will step in.
The SGA expense is outlandish. I would love to see line items that make up 40 million a quarter. The company had a great revenue quarter but SGA wS TWICE gROSS PROFIT. I agree with you..expenses should have been matched to the revenues with advanced ticketing etc....there is no doubt the company overspends on salaries etc.
Nothing has changed but the stock price and that only fell because of Sillermans #$%$
that is just plain stupid