RE:RE:Buyout at a lossretiredcf wrote: It seems from the conference call that much of the lowered forecast can be attributed to increased capex spending in order to ramp up their business in PA, NJ etc. The company wants to be a leader in multiple areas so they are spending money to make money. But this long term thinking is running headlong into the daytraders or younger investors who are obsessed with the short term and have no patience. Presumably most of these investors have now departed so we can settle down and see if this longer plan works. GLTA
Not true at all, you are falling for their spin. The market did not buy it, which is why the stock fell 18%, even though it was already trading near 52-week lows.
The increased spending for Foxbet was not something that just appeared out of thin air. They had obviously budgeted for it. The were trying to spin away from the fact that results were so poor across the board.
Also, remember that they already have a full operation running in NJ, it is really just PA where they need to launch. Clearly, Fox is making them pay through the nose for the deal, just like Sky did. TSG will bend over because they have no choice. Their core international business is dying even faster than they expected.