CB,
Looks like Charter could swallow up HSAC and we will all lose on dilution.
If Charter exercises all it's options, it will own 7,750,000 shares, or 14.3% of outstanding common stock (based on total outstanding shares of 54,117,849). This hardly qualifies as "swallowing up". At this point, HSAC would have exclusive access to 11+M homes passed, a major player with corresponding market valuation. From an investor standpoint, I'd welcome this level of ownership, especially considering that these shares were merely transferred from VV's hands to Charter's hands, as opposed to being newly issued (therefore, I don't see the merit in your "we all lose on dilution" argument). VV, being a venture capital firm, would at this point have completed it's work (since HSAC would be firmly established) and received monies suitable for future investment in "venture" firms (this is what they do) and Charter would have considerable cause to desire and promote success for HSAC. Textbook "Wired World" synergy, IMO.
Regards,
PM |
