Hi Jim,
I found this thread and SI from a surf. I've been looking for a FAQ or info page on SI but was unable to find one.
I've been following NTN since I started playing Trivia back sometime in 1990. I went over a good chunk of this thread (waiting for a batch job to finish) and ran across a few questions where I might be able to provide some insight.
- Takeover rumors: These have been around forever. Back a few years ago, NTN passed an anti-greenmail/poison pill provision. At the time, the board was very committed to staying independent, and I believe they still are in that stance. IMHO, any buyout would require a large enough premium to ward off attempts.
- INNN and NTN: Early on (c. 1990), the NTN games started with a copyright/disclaimer page which mentioned Interactive Network. Many investors (including myself initially) were under the impression that they were the same company. This lead to a soft linking of the stock prices. INNN had seed money and support from GE, and the INNN CEO appeared often on CNBC hyping their product. INNN began a series of home tests in the Chicago area (and others). This was the biggest failure I've seen in marketing. They were asking for a $199 equipment investment, and they gave their word that they would never increase their $20/month connection fee. During the test, INNN moved from around $5 to over $15, dragging NTN up a few points also. The home market was the only place the two were going to compete. Investors were betting on INNN extracting money from all cable TV subscribers, thereby growing to billions in revenue as the cable giants have. I don't think they realized how the American people felt about their cable bills, and were never going to let another company hook them in and then jack up the monthly rates. In the end, the tests failed to produce enough revenue to satisfy TCI and the company eventually ceased business operations. INNN tanked in 3 swoops $15-5, 5-2, then fianlly off the board. Each big move down dragged on NTNs price, even though NTN was making nominal money then. I think that large investors remember being burned on INNN and don't think too highly of interactive TV (3DO "recently" tanked also).
Recently, as was posted, a few of them have begun to come back in to the ITV market. I think the FCC debacle really scared them and hence this great buying oppportunity.
... I see my job finished. Back to supergravity...
l8r,
Rich |
