That depends on how much had been invested, and whether someone wants an end
game sooner.
Stock deals have the potential for larger return in the long run.
I believe in the next year there will be a hgih volume bid war for WISPs in
major markets getting top dollar.
The reason is that, the Hype of Wireless is more valuable to a large
publically traded ISP, in stock holder perception, than the network and
revenue that they are buying.
The average consumer doesn't understand jack about what wireless's capabilty
is, they just know Wireless is the next big thing, and the providers that
own the major markets have the best chance to win in the long run.
I'd also argue that one should demand/negotiate the stock price trade based
on the buyer's value prior to the anouncement of the buyout, so you can sell
your own portion of stock a month down the road, after the stock value
skyrockets. Easilly could increase the profit from sale > 20%, provided a
public company buying.
Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband
----- Original Message -----
From: "Gino A. Villarini" <[EMAIL PROTECTED]>
To: "'WISPA General List'" <[email protected]>
Sent: Monday, October 16, 2006 11:24 AM
Subject: RE: [WISPA]CovadExpandsBroadband
WirelessNetworkWithDataFloAcquisition
I would prefer 1.5x cash vs 3x stock
Gino A. Villarini
[EMAIL PROTECTED]
Aeronet Wireless Broadband Corp.
tel 787.273.4143 fax 787.273.4145
-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On
Behalf Of Charles Wu
Sent: Monday, October 16, 2006 11:06 AM
To: 'WISPA General List'
Subject: RE: [WISPA] CovadExpandsBroadband
WirelessNetworkWithDataFloAcquisition
Of course, the market is currently valuing such companies at 3x revenue on
stock deals.
But, minority stock in a privately held company (or even many "public" OTC
companies) is generally worthless
-Charles
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