Quote:
Originally Posted by datatank
Fabian/Nathan I have a very simple question.
Where did you get $140 million dollars?
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I doubt that it was anything close to a 100% cash transaction, or that Nathan / Fabian put up all of the cash, collateral, etc.
Nathan / Fabian has acknowledged that there are other "shareholders", he just won't mention who they are, even though if they are reputable people/companies, that might go a long way towards easing some of the uneasiness that many feel about the Mansef - Manwin deal.
If you recall, Penthouse reportedly purchased Friend Finder Network (AFF, etc) for something around $500 million, even though they didn't have anything close to that amount of cash on hand. In fact, Penthouse was significantly smaller than FFN/AFF, and was carrying major debt itself (as FFN/AFF was).
As I understand it, Penthouse is currently in debt up to it's neck, and although they have tried to get an IPO off the ground for a few years now (which failed), they are somehow still trying to make a bid for Playboy, which I presume would mean they would have to assume even more debt.
Sometimes corporate finance is like a house of cards, where the people controlling the deck greedily squeeze out as much for themselves as they can before the cards come tumbling down.
Even if they leave a path of destruction behind them, they often emerge relatively unscathed if they played their own cards right.
ADG