How will Unlocked Value be Monetized ?Massive buying in recent months demonstrates that GVC is not only quickly moving to robust profitability but that it is gross;y unddervalued.
Undervaluation is a result of the discounted value of a holding company which bhas more than one business under its operating ownership.
A probable outcome in my view is that GVC will be taken private.
In that scenario, minority shareholders must approve the trasnaction by majority vote.
That will be prededed by fair value analyses.
Book value is a strong reference price of the floor fair value.
Book value is rising and is now $182.5 million which is $1.35 peer share.
That is more than a double from here.
The other option is to unlock value for each subsidiary either selling them or spinning them
out.
Value value is difficult to quantify but would be significantly higher that book value, perhaps douibling or more.
In this regard, we know that other countries have sued google and Facebook for stealing local news from domestic carriers.
Comparatively, the amount that GVC would receive is substantial.
Given this future outcome, it makes sence that GVC will be taken private before the financial outcome of such a litigation by the Fed Govt becomes fact.
With over $14 m in cash and no LT debt, GVC should be at least a double or more depending on the method of monetization chosen.