. . . A few thoughts on BDE. . .
First, the equity investment by media investors, worldwide, helps explain what I was telling someone last night. . .the buying this week was FAR bigger than just our thread. . .there has been some serious ACCUMULATION going on, which has been sucking up the float.
Remember when I said the cage was open and we had a free bird??
Today's news CONFIRMS what we already suspected. Now the rest of the world is finding out with this news. And if Intel DOES have plans to spend some of that quarter billion collected for investing in 64-bit software development companies. . . BDE being their OBVIOUS favorite [look at Intel website]. . . then they had better start writing that check or they will end up paying much more than they may have originally planned.
Now the WHO list of recent investors is sort of a wake up call to other investors in the film industry. It is like Paul Allen or Bill Gates investing in some unknown silicon company and the world goes. . huh? Who are they?
As for the financials, this is a young company that has struck it rich with a system of development of multi-path movies that has become the accepted standard. They will be given LOTS of freedom from worry about financial responsibility for some time to come. . .so that is a non news event, in my opinion.
The At Home Benelux. . European broadband content development deal for multi-path movies is more big news. Ever hear of any OTHER companies signing movie deals with At Home America or Europe? If you do, please let me know. . .I would like to invest in them as well [seriously].
Brilliant will provide @Home Benelux with Multipath(TM) Movie previews and Webisodes(TM) under a revenue sharing arrangement.
The key with these ATHM deals are the words "revenue sharing arrangement" . . .by sharing revenues, you share responsibility for success. No success, no revenues. It's the next closest to "joint-venture", which implies financial responsibility by both parties.
Often such deals are divided up where each company focuses on what they do best. . . probably means BDE provides content "masters" and passes along to ATHM for marketing, setting up servers, distribution, money collection and customer service. FAR FAR better than if BDE were to try to handle the whole thing from their website.
SIDEBAR:
I have signed such deals, where the distributor handles all production , marketing and distribution and sends me royalty checks for my artwork. . . nearly a pure profit arrangement for my side. . .yet other side had no worries about when or if they would receive product. . .they made their own. . .totally a win win.
Then the list of distributors of BDE is interesting, due to Intel once again being left off the list. Why does BDE keep forgetting to mention Intel to their shareholders? This is still a mystery to me. I go on to the Intel website and there is so many pages devoted to Brilliant Digital Entertainment, who they are, about multi-path movies, how they work, samples, etc etc etc. . .that I forget that I am on the Intel website. . .seems more like the BDE website.
Yet the PR never seems to mention Intel. Why is this? Does Intel plan on making a MAJORITY stake? I have no idea. But the missing reference of the world's leading chipmaker does give pause. And check this out. Remember the recent Intel news, where NBC awarded Intel the contract to develop NBC television programming for DIGITAL television?
If BDE is Intel's right-hand man. . .would this deal not INCLUDE BDE?
They are the ones that took the XENA shows, and childrens programming and made them digital for multipath distribution.
The NBC deal never mentioned "multipath" . . but again the question is this. . .If Intel is NOT going to be the "content developer" for Intel on the NBC digital television deal . . .then who will?
I would say accumulation will continue. . .and that it is just the beginning.
Rande Is
.
NOTE - - These are strictly my opinions and are not a recommendation to buy or sell any stock. I do hold a long position in BDE and currently hold no position in INTC, GE or ATHM. Do your own DD before investing in any equity. |
