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Have you considered buying WOW instead, it's trading at a discount?
Buying more here that was a nice move getting wow !
lol…
This stock soared on BS and now it is eating sh!t.
Down from well over $2.10 to less than $1.50 is a > 25% drop from recent highs.
I feel bad for peeps who bought up there without looking into GNUS.
They’ll very likely never break even and God help them if they try to average down and throw good money after bad.
Expecting a positive bounce tomorrow. Deal will make GNUS a stronger company.
Expecting a positive bounce tomorrow. Deal will make GNUS a stronger company.
I wouldn't, unless I had stock with a cost basis equal to or below his.
The ChizComm acquisition didn't make sense. It wasn't accretive. It about doubled the losses GNUS records.
I trust Andy more then anyone on these boards about what’s profitable for the company.. lol
I don't know if it makes sense or not for GNUS. Andy Heyward is a GNUS shareholder and he seems to like the deal.
I think it would have made more sense for GNUS to make an offer on WOW last year, before it started turning a profit and was trading near $0.30 per share.
Purchasing an animation studio is an acquisition that I thought GNUS should do, when Andy was saying GNUS would make accretive acquisitions. GNUS has the cash to fund animated movies/series based on the IP GNUS has. Owning the studio gives them more control on the production timing.
It was a good move .. bigger and stronger company !
It doesn’t make any sense at all from a GNUS shareholders perspective.
GNUS is bleeding cash on a quarterly and annual basis.
Just to survive they very heavily diluted the common shares and this WOW deal does not (AFTER WOW EBITDA) even turn GNUS into a near term profitable per share investment.
A very clear example is that the most recent quarter (MRQ) very clearly showed a loss per share of $0.02 on 300,600,000 shares or over $6.5 million.
WOW’s EBITDA annually doesn’t even cover a quarter of the annual losses (2020 and YTD) for GNUS.
They’re throwing $53 million dollars into WOW and it is only accretive to the extent THAT MAYBE if GNUS actually runs their company responsibly that they may come close to breakeven versus continued losses.
In other words…today’s 20% haircut may simply have been a haircut for a person who is going bald anyway.
Let em sell,those Twitler fools are led around by their noses and never have a clue,they panic sell if the sky is cloudy when they were told it was to be sunny in a tweet.
I've been scooping up cheap shares today and will watch the after hours trading.
Got it, people were hoping for a quick pop that comes with being purchased rather than acquiring a company that will make you stronger long term.
From the posts I was reading, people were expecting GNUS to be bought out. I didn't see anyone expecting GNUS to be spending money.
This deal makes more sense than the ChizComm acquisition.
Good discussion, appreciate the thoughts of the board.
At least as of this afternoon, the market doesn’t appear to be thrilled by the news for gnus.
Hopefully that changes…
You are right about basing the purchase price on a multiple of revenue. I should not have implied that.
We have seen that GNUS paid $8.5 million in cash plus nearly 2 million GNUS shares (worth about $1.80 a share at the time) for ChizComm. ChizComm doesn't look close to producing that kind of revenue and ChizComm will generate a loss (negative earnings).
Acquiring WOW is a much better deal for GNUS than the ChizComm acquisition.
I am not saying WOW will make GNUS profitable, but, it's at least6 stepping in the right direction.
WOW's EBITDA is growing and WOW probably would have shown a profit for 2021, probably in the 5-6 cent US a share range. A P/E of 30 would place the share price around $1.50 to $1.80 (without any crazy speculative spiking).
Unless WOW will hit a shortfall in revenue, it looks like WOW shareholders would be better off not being acquired by GNUS.
Okay Rick…
I disagree with WOW. Yes their revenue is easy enough to find and so are their EBITDA info showing a near 10X multiple on earnings.
Don’t make the mistake of basing a purchase multiple off of revenues.
Any company that makes $200 million in revenue but that revenue cost $300 million is not worth a $200 million purchase price.
WOW is not worth their revenue for a purchase.
WOW is worth breakeven or a multiple of profitable earnings. In this case it appears that GNUS is paying a hefty multiple for WOW’s EBITDA.
Sorry for the edits. I add edits within the (15 minute) time period to save on new posts.
As a WOW shareholder, I'm not sold on this deal. WOW was heading for a profit for 2021 (it was EBITDA positive for 2020) and it's likely a decent P/E would have pushed the share price beyond what GNUS is buying it for.
WOW is hardly garbage. Revenue for the last 12 months is about $56 million US. GNUS is paying less than one times revenue, revenue is something something GNUS sorely lacks. With WOW's animation studios GNUS can fast track animation series at slightly lower costs. Also, putting Kartoon Channel on the Frederator Networks could drive a lot more views, increasing ad revenue.
WOW has some fairly high profile projects ("Castlevania" animated series, "Adventure Time", "Fairly OddParents", etc).
It's clear why GNUS is buying WOW.
GNUS is cratering because of the speculative increase that happened on Monday's PR announcing today's conference call. GNUS was trading near $1.30/$1.35 before Monday's press release. It's still up based on that.
I held GNUS going into June of last year. I know the company and the dilution that has taken place. It will still have a long way to go to hit breakeven.
Lol @ noting an edit while you’re writing a post.
How about you just go back and make appropriate additions or corrections while you’re typing your post unless…
Ohhhh I see…
For some reason you think that writing it that way somehow makes it seem that much more credible.
WOW is garbage. GNUS is paying $53 million for a garbage company with cartoons that are outdated.
That is why the stock is cratering and has fallen from over $2.00 per share to $1.50 in two days.
PERIOD!
GNUS revenues (GNUS IS THE COMPANY DOING THE BUYING HERE) are at a constant loss to shareholders.
GNUS loses money every quarter and wouldn’t have a penny if it weren’t for dilutive share offerings and convertible debts.
GNUS is garbage. Hold or buy here at your own risk.
My understanding $GNUS has $90,000,000 in cash on hand and zero debt
As a WOW shareholder, I'm hoping for another buyer.
If WOW ended the year with profit, it's likely the share price would be above this buyout price.
Thanks for sharing, very helpful information. Sounds like we should have good days on the way.
I'm a WOW shareholder. The deal looks good for GNUS. I'm hoping another company comes in and makes a better bid for WOW.
This deal is for less than one times WOW revenue
This deal should cost GNUS about $40 million in cash plus 11.4 million shares of GNUS.
WOW is EBITDA positive, is showing about a $0.03 US cent a share profit so far for 2021 ( for Q1 and Q2). Has revenue for the last 12 months of about $56 million US.
WOW has a substantial MCN (YouTube multi channel network)generating over $20 million US in revenue and animation studios generating over $30 million US in revenue. This will add substantially to GNUS.
There is good synergy for lower cost animation for GNUS and much better distribution on Frederator/WOW networks.
Edit
It's a much better deal than the ChizCom buyout.
Edit 2
The Frederator Networks generate about a billion views a month and generate over $20 million US a year for WOW
https://www.channelfrederatornetwork.com/
The (70) millions of views GNUS has been PRing are pitiful.
There has got to be dilution happening right now unless it’s shorting knowing dilution will occur.
Deal looks good but might be short term pain to finalize it.
The deal has been outlined in a SEDAR filing for WOW. Today's filing.
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00027273
It's 0.271 shares of GNUS and C$1.169 (about $0.935 US) for each share of WOW stock.
It looks to be a good acquisition for GNUS, if it goes through.
Edit
It includes converting some debt WOW has into shares.
Lololol
Hey folks???
LMFAO at “cash and shares”
Oh really?
What cash?
All of the shares needed to buy WOW OF COURSE WILL MASSIVELY DILUTE shareholders!
Holding on to this stock or buying it right now is pure insanity.
May as well pick up a bottle clearly marked with 3 BIG BOLD X’s at the top and a skull and crossbones in the middle and drink up.
Picked up more here against my better judgement, can this thing rip yet?
Seems like we should be going the other direction.
Give it time for the weak hands to bail. Bagged a few at 64 to add to the stash.
Peeps waiting to find the bottom.
Yeah I’m just about done with the market these days .. always in shorts favor and manipulated .. gme was a perfect example.. for once shorts got beat up .. but look how many stocks go to zero .. and even then Robinhood just got a slap in the wrist ..
Yep..very good news..should be up big
Huge buying opportunity!!
Should be up big .. but they blocked any momentum.. sec and market corruption at its finest.. market in bed with the short sellers ..
Not looking good here today, what’s up folks?
“Wow also has a large social media footprint across YouTube, TikTok and Giphy that will help expand the Genius Brands kids’ demo to teens and young adults. Wow has over 1 billion views per month on its Frederator YouTube Network, with over 2,500 advertiser supported channels.”
09:41
GNUS
Genius Brands agrees to purchase Vancouver-based animation company Wow! Unlimited Media for approx. US$53 mln, according to Deadline (halted) (1.87)
Interesting...positive business development ?
Trading halted until after the 9:30am CDT Conference call.
BOOM!!!
Yeah I just grabbed some
Grabbed a starter here…
Hoping this is a good entry point.
Really that sounds pretty good!
I saw something with DIS on Twitter
What’s the rumor on the positive news coming ?
$GNUS Is Genius Brands Going to Ride with Shaq O'Neal to $10 and Beyond?
https://www.nasdaq.com/articles/is-genius-brands-going-to-ride-shaq-to-%2410-and-beyond-2021-03-28
GNUS - Monday Rundown, Tuesday Expectations
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Genius Brands International, Inc. (Nasdaq: GNUS) is a leading global kids media company developing, producing, marketing and licensing branded children’s entertainment properties and consumer products for media and retail distribution. The Company’s award-winning ‘content with a purpose’ portfolio includes Stan Lee’s Superhero Kindergarten, starring Arnold Schwarzenegger; Rainbow Rangers for Nick Jr.; Llama Llama, starring Jennifer Garner, for Netflix; award-winning toddler brand Baby Genius; adventure comedy STEM series Thomas Edison's Secret Lab; entrepreneurship series Warren Buffett's Secret Millionaires Club; and Stan Lee's Cosmic Crusaders, created with Stan Lee's Pow! Entertainment. Through licensing agreements with leading partners, characters from Genius Brands’ IP also appear on a wide range of consumer products for the worldwide retail marketplace. The Company’s Genius Brands Network of channels, including Kid Genius Cartoon Channel, Baby Genius TV, and Kid Genius Cartoons Plus!, are available in over 100 million U.S. television households via a multitude of distribution platforms, including Comcast, Cox, DISH, Amazon Prime, Sling TV, Apple TV, Roku, Amazon Fire and more.
Genius Brands International, Inc. Investor Relations
190 North Canon Drive Floor 4 Crescendo Communications, LLC
Beverly Hills, CA 90210 T: 844-589-8760
GNUS@crescendo-ir.com
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