Deciphering George Gilder’s comments re: MLNX EZCH proposed acquisition.
As I see it, It appears that GG as the early the early discoverer / long time promoter / investor (his largest investment) favors the acquisition, but reluctantly so because-
+ the apparent “ ridiculously cheap” valuation.
+ the disappointment - GG obviously feels disappointed / injured (as many of us do) as this was perhaps his last great hope for another QCOM, a 10 bagger or more. For over 15 years he held hope (“...Pretty much everything I hoped for technologically happened, but somehow the market did not comply “...) that EZCH’s time would come, but now realistically realizes (understanding the motives of his long time friend – Eli) the best current outcome is via the MLNX acquisition.
I don’t believe GG had any inkling of Eli’s decision prior to the announcement ( the impact of losing CSCO & its bearing on Eli -his retirement), but has recently spoken with Eli and Eyal and thus the message in his most recent post----
Snip>>>
“...As a user of EZ's chips, eventually the NPS-MX, Mellanox will harvest 10 times the revenues EZchip can get as a producer of chips alone.
In effect, Mellanox would become an EZ competitor, across the street in Yokneam, focusing on systems that EZ cannot produce or market.
Eli will buy MLNX shares as soon as the deal is completed.
He says the momentum is irreversible and the consequences of turning down the deal are dire for us all. ..”
Repeating GG’s last words>>>>
“...the consequences of turning down the deal are dire for us all. ..”
............Something for the angriest among us to think long and hard about.
....especially those not fully protected / hedged, and those **without** inside information of the number of shares intending to vote no. |
