Market cap is what? circa $15M on todays prices. Then add the circa $11m in preference shares to HBO. The balance sheet is not great as working capital is negative so after the recent cap raising lets be generous and at back $2M for the cap raising. That means enterprise value is about $24M if they buy the shares at current prices with no premium to current prices.
You will also be buying the DVD distribution business which is has zero future. So lets add back another $1M to exit the DVD business. So at current prices you are looking at say $25M for the business at no premium to current prices.
What do you get for $25M. A streaming website and associated arrangement with the likes of LG would probably cost less than a mill. That leaves $24mill to be spent on content.
Streaming is getting more popular and content will get more expensive but there is no way IMHO that QFX content and customer base is worth $24M
Cheers
QFX Price at posting:
1.3¢ Sentiment: Sell Disclosure: Not Held
