You are not wrong. This "merger" is really a takeover. The worst part is we're being offered shares in the merged entity as most of the payment. The question is, how do you value those Nine shares? I for one value Nine at less than half it's current market cap so FXJ holders are getting ripped off.
Most of the supposed "premium" in shares has already evaporated. I would not be surprised if it goes negative closer to the closing date.
This is a deal full of golden handshakes and arrangements to benefit board members, not shareholders. I am happy to vote out the current board and install a bunch of random hotcopperites to lead the company, can't do worse than the old fogies that are currently there.
Clearly they've given up. Their "strategies" to date have been accounting trickery, spinning out part of domain. The operational efficiencies with the newscop print sharing arrangement, and now just letting the company be bought by nine.
Is that all they've got? In this new age of disruption... wtf kind of a strategy is that.
They have no idea to grow the businesss so they should all just resign.
FXJ Price at posting:
81.0¢ Sentiment: Hold Disclosure: Held
