Quote:
Originally Posted by The Porn Nerd
Well, there goes my promoting AdultFriendFinder then.
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Why ?
It has been spelt out to you what is actually happening here.
a) The founders sold the company to some smart arses who did not have the money to actually buy the company, but the smart arses thought they could leverage the profits of the company to pay for the sale ($400m)
b) The loan notes have paid 14% interest to the founders of the company ever since the "sale".
c) The smart arses were not as smart as they thought they were, and the company never made enough money to pay down the debt.
d) Because the trading profits were not able to keep pace with debt repayment the debts spiraled out of control. Balance sheet meltdown. The debts became so large the the founders were not even getting their 14% anymore.
e) Foreclosure.
f) Business as usual for AFF and it's affiliates. (the smart ones) The dating and cams business generates nearly $300m a year and returns a trading profit of around $20m. The only problem for the new owners of the company has been that 14% of the $400m purchase price is $56m in interest payments.
g) The founders have lived like kings on the 14% and other funds raised by IPOs etc, and now the founders have taken the very profitable asset back from the smart arses.
h) I wish I was as smart as the founders of AFF.
