Is that when you will quit? When everyone's done in? Is that what you wish to contribute toward? Would that represent triumph for you?
Why not face it, your boys just want a settlement if Zulu gets big again. I'm sure they think it prudent to have a lawsuit waiting in the wings? Incidentally, have formal papers been filed? Has everyone been deposed? Is the case ready to move forward into trial? Of course not! They want a settlement.
It's not enough for them to do well by the shares they own. Their egos are bruised. It's obvious. I'd venture to think that they think Zulu will pay 'em off just to get rid of 'em. 'Cause they're going to block Zulu every step of the way and be real pesky critters--just like you!
Forget it! Jon, you're not going to get your wish. Your act will be an act of the past and will be miniculed by Zulu's future success.
"The Next Act
Smith acknowledged the company's history of
troubles, including a lack of communication with
investors, but stressed that the company will
mend its ways.
"Our plan is to go forward with the merger and
go back to the investors," said Smith. "It's what
we wanted to do in March and April, but we just
stubbed our toes for awhile."
He insisted that any attempts by former
Softbank Interactive executives to block the
completion of the Zulu-Tek and Enhanced
Services merger will fail. The former executives
are correct in their assertion that the assets of
ZuluMedia may not be sold without their
consent, he said, but that point is moot.
Enhanced plans to acquire the assets of
Zulu-Tek, not ZuluMedia. Zulu-Tek owns 75
percent of ZuluMedia's stock.
"Zulu-Tek is selling Enhanced its shares of
ZuluMedia. You can't prevent a shareholder from
selling his interest," Smith said.
While lawyers wrangle with the details of the
proposed merger, the company is proceeding as
though it's a done deal.
Following a hiatus lasting several months, it is
briefing analysts again, said Smith. Charles
Payne, head analyst at research firm Wall
Street Strategies, said he read over some
promotional materials sent to him by Enhanced
and "likes the story," although he has yet to do
any deep research or meet company
executives. The company would not name any
other analysts it had contacted.
Smith also pointed to another pending
acquisition as proof of the company's
forward-looking strategy.
In June, a Connecticut-based company called
eCommerce Corporation signed a letter of intent
to be acquired by Enhanced Services in a mixed
stock and cash deal. ECommerce develops
online catalogs that come equipped with the
capability to complete a sale online. The
company has built catalog sites for an
impressive list of clients, including Yahoo,
Sports Illustrated, and Simon & Schuster. It
projects revenue of about a $1 million in 1998.
ECommerce's founder and CEO, Lance Estes,
said that Hayton and executives from Enhanced
Services approached him about three months
ago, after eCommerce sent out feelers for seed
money. Estes was immediately excited by the
prospects of a deal with Enhanced/Zulu,
because it would give eCommerce access to the
clients in Zulu-Tek's ad network.
"Our client list is very nice, and their client list is
very nice," he said. "It's a very symbiotic
relationship."
Estes said he researched Hayton's past and
remained undaunted. "He's done some great
deals in the past. You guys make him out as
the beast, but we don't see him as the beast.
Nobody's going to put that much money into a
company and then run it into the ground."
Estes also said he was aware of the evictions,
and the various outstanding judgments and
liens, but brushed them off as the by-product of
growing pains in a promising start-up.
"I don't know if I can go into Pat Hayton's logic,
but there's a logic to the plan. All bills will be
paid and everything will be taken care of.'" |
