Looking over my latest posts today I was appalled to see the high spam content. So to atone for my sins I had to choose between shaving myself bald with a cheese grate while listening to Spice Girls at full volume or post a full cross referenced commentary of Mattys and Davids travel reports. I chose the latter...
The Office
[David] This office is certainly nothing to brag about, certainly not an office that was constructed to impress clients but adaquate non the less.
For starters I think we can all agree that the company exists. As to the state of the office I think I'll agree with Peter Lynch: "Rich earnings and a cheap headquarters is a great combination". Nice, tidy and functional is just fine. Now, about those earnings...
The Conception
[David] Thom is an entprenuer who has started (according to him) two other companies prior to echo media.
Does anyone have any info about these companies? They would establish track record.
[David] Should mention as this time that there were 3 Brits only one of which Thom has to this day ever met.
[David] This BB shell and the Brits add cause for concern. They are from as best I can tell Venture capitalist out for a quick buck then on to the next deal.
[Matty] Mr. Burgess honestly was not aware of the 42 million outstanding. I am assuming these investors own the other locked up ones... along with softbank holdings.
Some handle on these VCs/Brits would be interesting. Anyone? It will be interesting to get the stock background when the financials comes out. Possible the VCs are trying to get as large a piece as possible of the company equity before it hits big. That would be in their best interest.
[Matty] Aside from the valuation of the company, Mr. Burgess pointed out that it was an easy way for this company to go public, and in a cheap way. [...] He told us that DoubleClick tried to go public three times; they failed twice. The third time they finally did it.
Interesting point. Could someone conversant with DCLK confirm this? It also highlights the fact that DCLK has been around much longer. I'd say that DCLK has about one year up on NETZ right now. It is hard to say exactly when NETZ will become optimal. With all this going on it may be sooner rather than later. It will be very interesting to see where they are, going into the autumn.
[Matty] When he got the money, he went out and stole some people from Digital Equipment corporation. [...] But I do remember that these people were heading the video streaming project over at DEC.
DECs streaming video project is partially run over here. I have some connections I could try. If I can get some names I will try to check them out.
Softbank Interactive Marketing
[Matty] 1)How much did they pay?
[...] He then went on to tell us that the budget they have for acquisitions in '98 lost a big chunk of it after the acquistion of Softbank. [...]
[David] Complicated aquistion. This leads me to believe lots of creative financing as pertaining to stock. [...] it was somwhere in the neighborhood of 4-8 million. Thom also eluded to the fact that this aquisition utilized a good chunk of the "20 million war aquistion war chest".
I am guessing here: possibly 25 mil shares and 15 mil war money was used to close this deal. Anyone care to comment? Please keep in mind that any money sunk into SIM is still 'owned' to 65% by NETZ. And NETZ has control over how SIM uses those funds. David?
[Matty] 3)Why did they finally choose Softbank Interactive Marketing?
[...] One of the ways he was going to make it profitable was to cut salaries. He stated that there was absolutely no way that they were going to pay the salaries of these bigtime executives. So they dumped some dead weight.
Guess Mrs Vanderslip didn't like the new figures on her pay check and left because of that.
[Matty] 2)Were they looking for other companies?
ANSWER: Yes. They had been in talks with other companies, including one i had never heard of called "Cats" and one I have called Cybereps.
Just want this clarified: are these still targets for acquisition or did NETZ pass on them?
Future
[Matty] His role is being reduced to the Director of Business Development. He has taken a backseat in this company, but he assures us that he will remain with the company as he believes in the potential. He likes where he is now and he wants to stay there.
I like that. The vision stays within the company. When the company has grown into its final shape, then maybe, it is time for the generic execs to step in.
Finally, the shoe fits better now and I think this may work out. There are some dark clouds but it is in their best interest to stay away for a while. The action when the financials are released will tell just how much interest there really is in NETZ. |
