Darrell: <<We know what the market has valued Seek shares at - at least before the deal. >>
Seek was bet. $100 and $35 before this total buy-out announcement, so what do you think the fair value for SEEK should be? Apparently, Eisner thought the fair value was around $40, and that is why he said he already paid a premium. It beats me that why DIS paid $50 a share one year ago, and now only valued SEEK even less.
<<look at China today. If Eisner had played this game right, he would have offered $65+ for Seek then turned around and made a bang up entry of Go.Com on the market with the addition of the Disney properties. >>
Agree with you completely. But the way Eisner played the game now, Go.com might not even worth $40/share if the market tanks, or the bear market starts. So where does that place Seek? Maybe like DIS stock itself, lost 30% of its value year to year? I mean another 30% lower from $50s.
This kind of merging/buy-out business is risky by default. If DIS does not want to take the heat, it should just leave SEEK alone. What DIS has done is a rip-off of the SEEK shareholders.
One last thing, is there any successful tracking stock on the Wall Street? If there isn't, why should I believe DIS can create one? The company's own record proves otherwise. |
