Does Pope's have groupies?
Think I have found the missing 5 bil in the LCOS deal..
To: +GAB1 (1673 )
From: +Miguel Octavio Wednesday, Feb 10 1999 5:30PM ET
Reply # of 1674
After reading Mr. Davis' statement in Reuters I did some research, if what I came up with is the truth, then these guys are fairly stupid about explaining things.This is what I dug out:
1) Seagram controls 45% of USAI
2) USAI has TWO types of shares. 124.5 million are class A and are listed, 31.18 are class B and are not listed. It is these 31.18 that are owned by Seagram and correspond to 45% of the company. (Warning: This is my interpretation, I might be wrong)
3) If 2) is correct, the market value of the A shares was 5 billion the day of the deal, which represents 55% of the company. Thus the WHOLE company was worth approximately 9 billion on the day of the deal.
4) Add to this the 5.3 billion of Lycos and the 3 billion of Ticketmaster then you get 17.3 billion.Lycos gets 30% of 17.3 billion, thus this is worth 5.19 billion, not far from the value that day.
If this is true, then it explains the whole thing, except these guys dont even understand their deal. This explanation is consistent with the numbers they have been throwing around, and indicates that Lycos should go back to $127. Would appreciate any comments.
Miguel
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term obligations................. $ 12,918 $ 42,906
Accounts payable............................................ 185,101 95,421
Programming fees ($19,091 and $9,051 to related parties,
respectively)............................................. 43,553 40,717
Other accrued liabilities................................... 118,169 93,998
þß---------- ----------
Total current liabilities......................... 359,741 273,042
LONG-TERM OBLIGATIONS (net of current maturities)........... 448,346 271,430
OTHER LONG-TERM LIABILITIES, net............................ 43,132 56,875
MINORITY INTEREST........................................... 372,223 356,136
COMMITMENTS AND CONTINGENCIES............................... -- --
STOCKHOLDERS' EQUITY
Preferred stock -- $.01 par value; authorized 15,000,000
shares; no shares issued or outstanding................... -- --
Common stock -- $.01 par value; authorized 800,000,000
shares; issued and outstanding 87,430,586 and 71,985,806
shares, respectively...................................... 874 720
Class B -- convertible common stock -- $.01 par value;
authorized, 200,000,000 shares; issued and outstanding,
24,455,294 and 20,450,112 shares, respectively............ 244 204
Additional paid-in capital.................................. 1,558,037 1,284,815
Accumulated deficit......................................... (103,601) (116,662)
Unearned compensation....................................... (3,202) (5,330)
Note receivable from key executive for common stock
issuance.................................................. (4,998) (4,998)
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