A LEADER OF NEW MEDIA AND
TECHNOLOGY COMPANIES
Intertainment Media Inc. is a leading incubator of technology
and social media companies. The company’s strategy is to
develop, nurture and invest in high growth companies, with
the ultimate goal of bringing them public.
The company’s most significant division is Ortsbo, an online
real-time language translation technology platform with
about 40.0 million users. We believe that Ortsbo provides
a unique and compelling user experience and has a
technology that is unmatched in the industry.
We believe the market opportunity for Intertainment is
enormous, as market research firm IDC predicts that
worldwide online advertising will increase to US$138.0
billion in 2015 from US$70.0 billion in 2010.
We note that the company is in a strong financial position,
with cash of $21.2 million and long-term debt of $2.6
million.
Recommendation: We use a sum-of-the-parts methodology
to value the shares of Intertainment. We use a ten-year, four
stage discounted cash flow analysis to determine a present
value for Ortsbo of approximately $398.0 million or $1.24
per Intertainment share. In conjunction with the other
Intertainment assets, we derive a total value of $1.30 per
Intertainment share. Given our assessment of the company’s
attractive prospects, we initiate coverage of Intertainment
Research report on INT released by Salman Partners Inc.
Source :https://www.intertainmentmedia.com/Email/int0212inkehyf.pdf