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 : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Heibeck who wrote (8606)	5/20/1999 10:16:00 PM
From: killybegs	Read Replies (2) \| Respond to of 17679

Re exercise of majority..remember 51% is the minimum..Ampex's stake could be in excess. I understand, from scuttlebut in the Phil Fisher sense, re AENTV, the majority option is for 60% of the stake. I don't know what it is for TvontheWeb, but if it is the same, you could do an IPO and retain control. Assume 10million shares pre-IPO for TV on the WEb, with Ampex owning 60% or 6 million shares. Assume a filing of 1.8 million new shares, leaving 11.8 million outstanding post IPO. Ampex would then own 6/11.8 of the public TVontheWeb or 50.8% of the company and control. Assume 1.8 million is priced at $12 for a 141 million post offering valuation. Tv ontheWeb gets 21 million for general corporate purposes to grow. Ampex sees an IPO valuation of $72 million on their TVontheWeb stake, preTax. If the recent pattern persists, public market trading may significantly boost that... Now listen, I totally made up all the numbers above to illustrate the mechanics. I have no clue or special insight into the numbers. I picked a 120million pre-money valuation (10X $12) out of the air mostly, but TvontheWeb did have $4million in revs in 1998, with about 25% coming from the Internet Video operations, which was about 6 months of operations(source 1st Dave Gardy Fireside)(beginning to look like the notations in Lord of the Rings appendices). ------------------