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.
But like was said earlier, I'm an armchair billionaire. The real billionaires seem to be able to make money out of thin air....at least until the taxpayers bail them out  |
Interpretation. AFF as a business made 17.6 million. Once you include interest expense which was about 58 million, it lost 32.3 million.
So what's sinking the numbers is the interest on the debt. The owners of the debt could foreclose on the current owner, but in all likelihood they'd keep the underlying business runningwhich made 17.6 million last year, they wouldn't just shut up shop because that'd be killing the asset on which they have a lien.