Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Paxson Communications (PAX) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (146)	9/10/1999 3:08:00 AM
From: Safe Cents	Read Replies (1) \| Respond to of 154

PAX turned down 3 offers at $16/share earlier this year from AOL, Seagrams and Time Warner. They are worth more now. News tends to travel fast. I will be surprised if they announce before next week if it's true. The confidence level from my contact is high. Never 100% though, of course. I don't know why it's only $16. Maybe just scared to jump in unless they expect it to happen. PAX isn't profitable like several other media deals. Picture this; what if NBC buys PAX and then Sony or USA Network buys NBC? Start those car dreams, I have a 944 so I would probably want to add a 5 series to the stable. The numbers shouldn't lie, if it goes 1/3 of the company for $400 million, that would make the whole company worth $1.2 billion. $16/share x 61,789,000 outstanding shares = $988 billion market cap or company worth. Well $1.2 bil is only 20-25% more than current. That also means the stock might only gain another 25% from the buyout. $16 becomes $20/share. There is usually a run over the selling price, if you can execute accurate timing you could do a little better. Sometime as much as 30 - 50%. If the deal is for $500 mil than you get a 50% bump from here to $24 min. As always there is the possibility of premiums being figured into the deal. (That would be good.) Motley Fools reported a possible 23% premium. Sometime down the road when soemthing happens with the other 2/3s, the long term outlook is pretty decent. Intellectual book value could be figured at $2.8 bil. (That would be nearly $50, but again long term)