The Problem With Neulion - And OpportunityBecause this stock is closely held by Charles/Nancy and a few others - they may have no interest whatsoever in selling at any price and I suspect buyers know that. They know the value of their company so they are in no hurry to sell. They also know they have a unique product. However, as mentioned in a previous post - institutions won't touch this for a myriad of reasons (see my earlier post) - under $1, no material stake to influence or buy board seats, etc.
Buyers may not be lining up because the premium they would have to pay to wrestle this from Charles/Nancy and co would be too steep to pay. It's one thing for us retail speculators to suggest a buy-out of NLN should occur (which we all agree would help shareholders immensely) - but it's not like we would have much of a vote. We may think it's worth $5 a share - and Charles/Nancy may not consider anything short of $10 to $15.
I'm quite long NLN - but don't expect a buyout or sale anytime soon. I suspect Charles Wang and company are playing the long game - they are viewing NLN with a 5-10 year lens before they might consider selling. My evidence for that is the foray into the entertainment space with Saffron acquisition (whereas had they shopped around NLN to MLBAM as a sports streaming property with a presence in Europe - that alone would have been sufficient to attract buyers). They are doing all the right things to add shareholder value for those who are PATIENT!
Now, the only risk in this strategy is competition. There are many deep pocketed players now entering this space who can build similar technology (recognzing NLN is still miles ahead)....of course, the other major risk is losing one or two major marquee accounts similar to the NHL deal - I think that's why this has not sky rocketed as yet. The market is taking a wait and see approach which is usually quarter by quarter - hence - don't anticipate this to skyrocket overnight UNLESS - of course - they to announce a sale at a very good price.
If/when this does sell - it will be at a very good price - but be prepared to hold this for years.