Friend Finder IPO Today

From reuters:

"Last year, the company co-issued, through its subsidiary Interactive Network, a total of $551 million of debt due in 2013 and 2014 -- all to cover previous debts, according to the filing."

Also: "FriendFinder's revenue grew about 6 percent to $346 million last year, while its net loss increased 14 cents to $3.14 per share."

Source: http://mobile.reuters.com/article/id...10511?irpc=932

Does anyone know what that places their valuation at?

They wanted to establish a public value for the company. Hoping that it would reflect favorably in terms of their ability to raise capital or pay down debt. If it stabilizes at 7, is that terrible for them. Less than ideal sure, but I'm wondering what their "disaster price" is.

I'm also wondering at what price they might become an acquisition target for a match.com or the like.

I haven't been following their offer closely, I have no idea what portion of their company is reflected through their public offering.

At $7 their market cap would be $187m.
Income from Operations is 71m, Net Loss is 43m in 2010. So its roughly 2.5 years of Income from Operations. Not great at all...

Their debt is whats killing them... and the IPO was a requirement from the lenders I am sure, since the lenders required a downpayment of the debt. The full 43m that they made with the IPO directly goes to the lenders to pay principle.

Gosh you guys are so negative.

Ive got share in Cisco, Exxon, AT&T, Verizon and others. Im thinking of selling my entire portfolio of 12 stocks and investing 100% of the proceeds in FFN.

This way I will become a rich bitch and you will stay poor bore

Probably wrong guy to be replying that to

5/12/11
FriendFinder Networks Inc.
(NasdaqGM: FFN )
Real Time 7.35 Down 0.50 (6.37%) 12:04PM EDT



this is short's wet dream.

http://www.sec.gov/Archives/edgar/da...443/d28208.htm
"We do not anticipate paying cash dividends for the foreseeable future."

From IPO Watch:

ADG

The S1 filing has around _30_ Risk Factory, including such Fun Things like "we Risk defaulting on certain covenants of the loan because we previously did" or talking about how they were in default for ages with their previous debt.. Ton of great stuff in there.

crazy that they could even obtain over 1/2 billion in "new" debt- that is due to mature in next couple-3 years.

No doubt they will need to keep rolling it over...but what happens if rates jump?

what would a default leave for biggest creditors?

Who will pay hosting bills if AFF/cams will really default as someone say in this thread, and so stop to pay $40 million a year to affiliates and tubes?

Wow, down below a half a million shares. Yesterday it was 2+ million.

Go ahead and buy as much as you can, prove us all wrong. I will be back here laughing at you when this gets delisted or becomes a penny stock. It wont be long, at most 3 years before its worthless.

I'll wait till it drops to .25 cents a share and buy everything you selling LMAO.

pulling a mark cuban

I guess we are just waiting to fight over the scraps.....

Investing money in adult company is way too risky. There are better internet companies to invest money in like Yandex and etc....

From the initial purchase of the company. I believe it's alot higher now.

Conru played his cards right. I remember articles floating about Friend Finder's value for a while in all the business rags, chumming the waters.


Exactly.


I've sat on both sides of the table, in the end our business model doesn't seem to succeed in that type of environment. It will still run, but it won't run as well. IMO you need to have an entrepreneur mindset to thrive. When a company goes public it never runs the same; it becomes bloated, sluggish.

OK, well my house is on the market now and I own 100% of it.

Ill get $20k when that sells (it was a small house, actually more of a glorified shed).

Ill invest that $20k into FFN while I rent (another shed).

I'll just sit in my shed with a laptop, connecting on wifi and pressing refresh on the browser to update the FFN share price.

That's gonna be a tough one, but I wish them the best of luck.

i bought a share

If you're sending AFF traffic, take it as a warning bell.

FFN is in a spiral of death. 5 days of trading and it's down more than 35%. I can imagine the brokers calling their clients, telling them it's a bargain and asking them to buy more of this turd. AFF

Today $5.63

Change -21.81%

So, how is this working out for you Sleazy?

Bankruptsies #2 coming soon i suspect if he thinks this is such a great deal, then he obviously hasn't learned much from his mistakes.

I've fallen and I can't get up!

FFN needs the help of LifeCall!

(sigh) You guys really don't know much about stocks, do you?

1) They sold 5M shares (out of 26.72M), so about 20% of the company.
2) Those shares can go to zero, and it would not "affect" the company - you don't go automatically BK when your share price goes to zero.
3) When the stock price gets low enough (let's say $0.50/share), they could buy them all outstanding shares back for $2.5M and take it private (if they wanted). BOOM! They just "washed" their company from private to public back to private and made $47.5M (minus fees) from all those sucker investors.
4) The only people who "lose" money are all the idiots who bought the shares and sold them for a lower value.
5) As others have said, they HAD to do this deal to try and lower their debt - their interest costs are crushing.

IMO, they're fucked. Unless they can cut costs or dramatically increase profitable sales, they're still losing money every quarter/every year. They are in a slow death spiral.

They're not going to be able to go back to the stock market (obviously), and the reason they went to stock market in the first place is because they can't get credit from any bank.

The next thing you're going to see from them is to start selling assets, presumably the least profitable segments of the business first.. whichever those may be - I suspect Penthouse goes on the chopping block first, but who knows.. they may ride the whole thing down until it crashes.

Ironically, they ALMOST pulled it off. Basically, when you IPO, you're either growing SO FAST that you can't tranditional financing (i.e. banks) because banks don't loan on "potential" (that's what the stock market is for), OR.. you can't get traditional financing because the banks don't like your numbers/business model/whatever.

So you go to the IPO market, and hope you can find a bunch of dipshits who will buy your stock and allow you to pay off the debt you accumulated.

So, had FFN been able to get out of the gate in 2007/2008 right before the market crashed, and assuming they could have sold $460M of IPO, they would have "transfered" the debt to all the idiots who bought that IPO.

Sure, the stock would have taken a massive hit, but fuck it, what do they care? They wiped the debt, they've got an extra $75M/year (that went to interest) to add straight to the bottom line.

It was a ballsy strategy (but a very common one - google: "leveraged buyout" or LBO) but they just missed on the timing, and it will end up costing them the company me thinks..

I love the way you think.

?Nasdaq stocks posting largest percentage decreasesAP(Tue 6:03PM EDT)

bah... this is adult... i bet there are mm's manipulating the shit out of this.

Number 3 is wrong. When they announce they are going to do that, and they have to announce it, they will have to pay a premium. Also, if they did that too soon, they'd get sued and spend a ton defending themselves. It isn't that easy to "wash" as you say.

Their EPS is -3.14 and their income -43.15M. They have 25.31M in cash. Unless they quit going through cash, they have 7 months.

So they went through all of that, according to what you said, to scam 50M out of wall street investors... AND THEY still probably had a NET loss for the year!! LMAO. considering they had a net loss of 43M last year! Not to mention the 500M of outstanding debt they have that will be coming due in a couple years.

They are fucked. As long as the stock price tanks it makes the stock worth that much less as they try to sell out their own shares (26M). I don't much about stocks but I know stock crashing is better than shooting up in value and making their company value worth a lot more.

FFN will be bankrupt in 2-3 years, where did this 50M cash grab go.... i would bet into someone;s pocket. I see this as a last ditched money grab on their part before the company implodes.

So which AFF shill are you ?

Almost 50% now.

Wonder if they would invest with me

It'll bottom out at some point. Like Playboy, it'll probably have a wild ride all the way down to $1 - 2/share and then bounce back up to $5/share or something crazy like that.

FFN hit a new intraday low of $2.50 and a new closing low of $2.52 At the rate FFN has plummeted since going IPO, it should be under a buck by the end of the year.