Quote:
Originally Posted by mynameisjim
From the NYT paper.
"[AFF] posted a net loss of $29.9 million on $48 million in revenue in 2007. For the first nine months of 2008, FriendFinder had operating income of $17.6 million and a net loss of $32.3 million on $244 million in revenue."
So my thinking is their debt is not just from the initial purchase. When a company losing money goes for an IPO, it better have huge upside potential. I'd say AFFs best days are well behind them. If they haven't made money yet, I doubt they ever will.
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What I really dont get it is, how the AFF could be bought for 400 milions, when they arent even able to make net earnings...
There is another take on the story, written by will76 on another board (I am reposting it without his permission, so hopefully he wont get angry):
Quote:
Originally Posted by will76
"I read this in one of the comments:
""""" Just read the S-1. The most important point is that the acquisition was funded primarily by Notes which is why there is so much debt now. So now the company is trying to go public to raise equity cash to pay off the previous owners Various Inc.
Also there is a $60M+ issue where the previous owners did not collect/pay VAT in European countries so that?s part of why the purchase price looks only in the $400M?s even though it was originally announced at $500M. """"""
Which makes a lot of sense. It sounded like Penthouse wanted to go IPO but they were a sinking ship with shitty sales figures. They lured (greed) Various to the table and promised them riches beyond their wildest dreams if they would sell out to Penthouse so penthouse would then look good enough on paper to go IPO.
At some point penthouse couldn't pull off the IPO so Various bought Penthouse (shuffling paper) and now Various is the one trying to do the IPO.
I'll have to dig up an old post I made over year ago, if the IPO didn't happen I bet Lars and Andrew get fucked. Penthouse has had a terrible history and has no future. They got suckered in on greed, were paid note and sold on future riches of an IPO. If the IPO doesn't happen they will likely be a lot worse off than they would have been if they didn't do the deal with Penthouse.
Its funny, Various was looking for someone to sell to, knowing AFF was at its peak they wanted to unload. Along comes Penthouse, sinking ship, they both try to use each other to make a ton of money. Would love to see this cluster fuck blow up. Almost there."
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if this is so, it would be really funny to see one of "the most smartest bros" going down. it looks like that "the karma thing" still works...