I've been thinking about this one also.
While we focus on the financial reporting aspects of the acquisitions, the manner of the recognition of expenses and revenues, and on the glitter of another Net IPO and the back door funding possibilities , the fact is that the new investment by Ampex in TVW really represents an additional infusion of funds at this moment of time.
What do they need these funds for? What operational imperative is looming to justify this employment of Ampex funds at this time? By the numbers, the new stake is about 150% of the initial stake.
This new addition follows on a relatively rapid ramp up of TVW from the minority stake. I believe Dave Gardy said that, in the ramp up, they went from less than 10 employees to almost 100. That was about 3(?) months ago. Now, so soon after, there is something which is going to absorb the use and need for these additional funds.
From today's press release, for me, the following two paragraphs really stood out:
"Ampex is developing an Internet video network which will create television for the web. It will focus on producing and delivering content to targeted online audiences
that is distinct from repurposed television programming for the web.
The Company is engaged in discussions to add even more Internet video production and distribution operations in major U.S. and overseas cities through strategic
investments and acquisitions along with a number of internal development projects. "
Perhaps I am over-ampexologizing meaning into this, that is, taking it out of context, but I see a very sharp turn and emphasis in the direction of Ampex toward narrowcasting and content business specialization.
In sum, there is the speculative possibility that the customer reception to well funded and seriously backed Ampex affiliates is driving Ampex to recognize this aspect of their operational portfolio as having the most promise at this time.
Time will tell. Here, I also am sensing an acceleration of the time table as these events roll out. I wonder what will be in a time frame as far out as six months from now – six months?
Ed Perry
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