RE: Strategic Alliance have now begun Not sure how much management control but they would need the backing of Fidelity if they try to take the company private or even sell it to another player. If this is taken private, all the shareholders would lose and management and the Board would walk away with millions. Private equity would pay very little for the stock, rewarding current management with continued employment and a very attractive paypacket. Than in two or three years when Mood Media became a IPO, management would be sitting on a massive amount of options at very very low prices. The shareholders that would benefit would be very few and limited to those insiders and the current board.
Mood Media is not a broken company, they have a broken share price. How we got to this current level is open to debate but I believe that the stock has been manipulated down to these levels possibly by a potential buyer. If management was serious about "unlocking" shareholder value, they would shelf the idea of selling the company, and do their job and start cutting expenses. Summerset is a dead division of the company yet it remains on the books 1 year after they put it up for sale. Get rid of it!!!!! Sell it for 2 Cineplex Odeon tickets but get it off the books. That alone will save millions of dollars in losses. Add in the expected $110 million increase in sales, cut their expenses, and the company is turned around.
Fidelity is the only hope we have of a decent share price on any takeover. In my opinion, everything that is wrong with the stock market from manipulation and greed could be found by examining the current management and board of Mood Media. Come on Mood, prove me wrong and do the right thing, but I fear that will not be the case.