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Technology Stocks : The Learning Company (TLC) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas C. Donald who wrote (5274)	8/4/1998 11:09:00 AM
From: Doughboy	Respond to of 6318

I just got my proxy statement regarding the TLC buyout of BROD. Some interesting facts I have not seen before: (1) BROD reports that sales of Riven are slack and that returns are up in 3Q98. They sound pessimistic about future of Riven. (2) On the face of the deal, we BROD shareholders are really getting screwed; the avg (mean) share price of BROD throughout 1996-97 was double that of TLC. And in 1998, we can only get 80 cents on the dollar. (3) On the other hand, according to BT Alex Brown, the contribution of BROD in the combined company in 1998 was 30.5% of revenue, 27.9% of gross margin, 7.5% of operating income. In 1999, they estimate 26.8% revenue, 25.9% gross margin, 16.5% of operating income. (4) After having discussions with TLC, BROD management "held discussions with other companies as to potential strategic transactions, but none of these discussions resulted in any transactions." No other takers. I voted yes. DougHboy.