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

To: flickerful who wrote (8696)	5/22/1999 8:24:00 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 17679

flickerful, thanks for that educational post, a good description of the ups and downs in the M&A business, and another proof that a deal is not a deal until it is a deal. Two little lessons from this post are that, yes, now it is 50% or more ownership to be included in te parent P&L statement and not the higher 65% I thought was still effective. The second lesson is Kitze willingness to risk the NBC deal rather then not continuing with his secondary, and I think he was absolutely right, there was a very good window to get a bunch of cheap money into the company on one side (a bird in the hand) and the possibility of a sugar daddy on the other (two birds on the tree), and he selected the bird in the hand. Strategically it strengthened him vis a vis his negotiations with NBC (and that was probably one of the reasons NBC was displeased) because his cash cache gave him more "breathing room" and more strategic options open. How does that relate to AXC and its I-net properties? Well, they can chose to move slowly with the groups thus keeping them possibly positive cash flow and not do an IPO, or accelerate the development and being negative cash flow and prepping the groups for IPO's. Both approaches have substantial risks as was discussed often on the thread. I think that big cash in the coffers at this time is more important than positive cash flow visibility over the next few quarters. Zeev