Media Endeavor IPO on friday - here's the salespitch to investors

Should have gotten Jeremy Piven for the video
 
They should make Chael the new UFC president
 
phatron said:
Should have gotten Jeremy Piven for the video
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"We desperately need the cash to pay for our gargantuan debt service incurred by purchasing UFC!"
 
Anyone actually watch the video??

Obviously it's made to highlight everything great and how everything will continue to be great into the future. But a lot of it is truth about WME's business. They do have a lot of different avenues of revenue to capitalize on. Entertainment business isn't going anywhere. I think overall the stock will do ok. It's slow growth stock. By no means is it any type get rich quick stock or any one thing that will make it pop. It's a stock you invest in for the next decade plus if your looking to make money.


P.S.: A Lot of companies are pushed over the edge to go public when they have become to big and continue to want growth. Many times it is to strictly help fund the company's ventures and there is nothing wrong with that. To go public is no thoughtless process. You instantly become publicly scrutinized for everything and your books are more or less open to everyone. News flash many funds raised from IPO's go towards paying debt. But that is only one piece of the pie.
 
"... Heavy emphasis on inflating numbers to make it look more valuable than it truly is"

It should've been worded lol


Jk
 
The funny thing is that investors are going to get totally screwed. In theory, this should be a sound investment -- IF they use capital raised from the IPO to help pay down their debt. However, that would essentially be them selling off their shares and then paying down the company debt with their own money (with the company now over 50% owned by investors).

Do we really believe these guys are going to do the right thing? They're using this to de-leverage themselves and they will find ways to pocket almost all of the money from the IPO. The company will then be just as debt ridden as it was before, but now if it fails, the former majority stake owners are no longer left out in the cold.

Ari and whoever else are selling off over 50% of the company, but they're making Class Y and Class A shares with 20 and 1 vote per share, respectively. For those who don't understand, there's something called "dual class shares". I can own 100% of a company, but then go public and sell 90% of the shares. However, I give my shares 20 votes each and the other 90% of the shares 1 vote each. That way I get a 200:90 vote ratio. So even though I only own 10% of the company, I still own a voting majority to control the company.

So these guys are still in charge, they still have the voting majority, but they have de-leveraged themselves of the financial risk. It's a joke. They should be legally required to use the IPO funds to pay off the companies debt, first and foremost.
 
Is this like an IPA but different? <28>
 
This is terrible news, the UFC will be dead within weeks
 
AmericanUppercut said:
Damn, was nice knowing you UFC.
I guess Bellator will pick up the fighters and we will all move there.
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Sorry bro the fighters are all under UFC contract, meaning that once the UFC dies the fighters will all be killed
 
Alpha_T83 said:
The funny thing is that investors are going to get totally screwed. In theory, this should be a sound investment -- IF they use capital raised from the IPO to help pay down their debt. However, that would essentially be them selling off their shares and then paying down the company debt with their own money (with the company now over 50% owned by investors).

Do we really believe these guys are going to do the right thing? They're using this to de-leverage themselves and they will find ways to pocket almost all of the money from the IPO. The company will then be just as debt ridden as it was before, but now if it fails, the former majority stake owners are no longer left out in the cold.

Ari and whoever else are selling off over 50% of the company, but they're making Class Y and Class A shares with 20 and 1 vote per share, respectively. For those who don't understand, there's something called "dual class shares". I can own 100% of a company, but then go public and sell 90% of the shares. However, I give my shares 20 votes each and the other 90% of the shares 1 vote each. That way I get a 200:90 vote ratio. So even though I only own 10% of the company, I still own a voting majority to control the company.

So these guys are still in charge, they still have the voting majority, but they have de-leveraged themselves of the financial risk. It's a joke. They should be legally required to use the IPO funds to pay off the companies debt, first and foremost.
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i don’t understand.

Aren’t de-leveraging and paying off the debt the same thing?
 
Fucking infomercials on this site. Fucking infolinks.
 
San Griente said:
i don’t understand.

Aren’t de-leveraging and paying off the debt the same thing?
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Not necessarily. It depends if you are de-leveraging your own position, or a companies position.

If I own a private company with $1 billion in debt and sell off 90% of my share in the company at its current valuation for $2 billion, then I have two choices: 1) I can play games and keep almost all of the $2 billion for myself, leaving the company with still $1 billion dollars in debt, the risk for which is assumed by the new shareholders or 2) I can understand that there exists some expectation that I will use some of that $2 billion to pay off the companies debt and do so.

As long as it is not specifically stated in the IPO that the companies debt will be paid off from the proceeds, then it's not really fraud to essentially abandon the company and cash out (de-leveraging yourself). But it's still a scumbag move.
 
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