Ampex Corporation (AEXCA) Message Board

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Technology Stocks : Ampex Corporation (AEXCA)

AMPX 10.66

+2.4%

3:59 PM EST

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To: killybegs who wrote (6849)	4/7/1999 9:28:00 PM
From: Carl R.	Read Replies (1) of 17679

Not true. Ampex is public, not Ampex Data Systems. They could have IPOed the video subsidiaries without this restructuring. The only thing they can do now that they couldn't do before is to IPO the new subsidiary. The neat thing about this restructuring is that they can now show financials for the data systems division without showing any expense for the holding company. This will make the data systems division appear more profitable, and easier to IPO or sell. It will also allow any growth in the new division to be clearly seen and separated from any shrinkage elsewhere. Thus if Data systems sales are increasing, but royalties are shrinking, the data systems division can still receive a high valuation because it is growing. I think the move to a holding company structure is very good. Carl

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