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Agree. I think this announcement is bull...
This is great, if we knew what these guys have left after shutting things down, and entering into a toxic financial agreement for Kazaa with BDE...
Was the .008 move to .35 the 'big move' and here comes the kill again? Now that we're stinkin pinkin...it's a free for all...
Unfortunately, all that I see in D420's post is that Ellin was trying to kill the stock price, and has now successfully done it, and ATRN has shut down the majority of it's operations, with few assets left...
What am I missing?
PPS was $3ish...
Without researching all these people's backgrounds and the price at which Ellin acquired the shares, I don't get it...
Seems like ATRN has played musical chairs with Directors in the past, and they continue to do it today. I'll see if I can figure it out tonight when not at work, but at first blush, ATRN comes across as a 20 something individual that has no idea WTF he wants to be when he grows up.
I'm digging for anything and everything mobile associated with ATRN to see if there's something there...
Hedge Fund money...
I'm not seeing sells either. I'm also seeing WARRANTS for Dyne to purchase at a later date with an exercise price of $2.90
He could, however, allow them to expire, obviously.
What's with all the David Copperfield $#it these guys are pulling...
Oy!
With what asset?
Do you understand what I'm saying. Kazaa No longer exists for ATRN...BDE cancelled the MSA...and ATRN wound it down...
The past apparently stripped the organization of all relevant assets, shut down the effective agency business only to reveal that we don't own anything of value...
Or am I missing something?
OK, furthering the Spyder information, I've been searching for lots of information on ATRN's Spyder that comes from other sources than this cos obvious bullshit.
At the very end, all I found that was relevant was VLF's post...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72016426
So, if the Affiliate Network / Agency business is canned, then what really is left.
Here legal, legal, legal, legal!!!!!!!!!!!!!!
I wish legal was my dog!
This will make you all sick...
OK, so you answered how the Kazaa asset transfer to ATRN from BDE plays out. So we are absolutely clear, from the filings, that ATRN cannot own Kazaa assets.
So now it leaves 2 choices:
1. Spyder is Kazaa reborn, which as far as we know, ATRN still owns; or
2. ATRN is a shell company that Brilliant Digital sucked the assets out of, only to leave retail investors holding the bag.
How in the phuck is #2 legal?
As of 12/1/2011, ATRN would down support of Kazaa...
http://www.sec.gov/Archives/edgar/data/1022899/000114420411068005/v242221_8k.htm
From their last 10Q
Note 4 – Kazaa
Kazaa is a subscription-based digital music service that gives users unlimited access to millions of CD-quality tracks. For a monthly fee users can stream and download unlimited music files and play those files on multiple computers and mobile devices. Unlike other music services that charge each time a song is downloaded, Kazaa allows users to listen to and explore as much music as they want for one monthly fee, without having to pay for every track or album. Consumers are billed for this service on a monthly recurring basis through a credit card, or mobile device. Royalties are paid to the rights’ holders for licenses to the music utilized by this digital service. Atrinsic and Brilliant Digital Entertainment, Inc. (“Brilliant Digital”) jointly offer the Kazaa digital music service pursuant to a Marketing Services Agreement and a Master Services Agreement between the two companies, each entered into effective as of July 1, 2009.
Under the Marketing Services Agreement, Atrinsic is responsible for marketing, promotional, and advertising services in respect of the Kazaa business. Pursuant to the Master Services Agreement, Atrinsic provides services related to the operation of the Kazaa business, including billing and collection services and the operation of the Kazaa online storefront. Brilliant Digital is obligated to provide certain other services with respect to the Kazaa business, including licensing the intellectual property underlying the Kazaa business to Atrinsic, obtaining all licenses to the content offered as part of the Kazaa business and delivering that content to subscribers. As part of the agreements, Atrinsic is required to make advance payments and expenditures in respect of certain expenses incurred in order to operate the Kazaa business. Since inception on July 1, 2009, and through September 30, 2011, the Company has incurred $17.4 million of cumulative net losses, net of recouped funds in order to support the development of the Kazaa brand.
[8]
--------------------------------------------------------------------------------
Also in accordance with the original Marketing Service Agreement and Master Service Agreement, Atrinsic and Brilliant Digital were to share equally in the “Net Profit” generated by the Kazaa music subscription service after all of the Company’s costs and expenses have been recouped. For the nine months ended September 30, 2011 and 2010, the Company has included in its statement of operations, Kazaa revenue of $7.1 million, net of deferred revenue, and Kazaa revenue of $8.4 million, respectively, and expenses incurred for the Kazaa music service of $12.7 million and $11.5 million, respectively, net of reimbursements from Brilliant Digital. Kazaa revenue and expenses are recorded as part of subscription services segment.
Effective January, 2011, in order to more accurately report revenue based upon the effective date of customer subscriptions, the Company began recognizing subscription revenue related to the Kazaa business, net of deferred revenue.
On October 13, 2010, Atrinsic entered into amendments to its existing Marketing Services Agreement and Master Services Agreement with Brilliant Digital and entered into an agreement with Brilliant Digital to acquire all of the assets of Brilliant Digital that relate to its Kazaa subscription based music service business.
Among other things, the amendments extend the term of each of the Marketing Services Agreement and Master Services Agreement from three years to thirty years, provide Atrinsic with an exclusive license to the Kazaa trademark in connection with Atrinsic’s services under the agreements, and modify the Kazaa digital music service profit share payable to Atrinsic under the agreements from 50% to 80%. In addition, the amendments remove Brilliant Digital’s obligation to repay up to $2.5 million of Atrinsic’s advances and expenditures which are not otherwise recovered from Kazaa generated revenues and remove the $5.0 million cap on expenditures that Atrinsic was required to advance in relation to the operation of the Kazaa business. As consideration for entering into the amendments, Atrinsic issued 1,040,358 unregistered shares of its common stock to Brilliant Digital on October 13, 2010. The issuance of these shares resulted in the Company recording an intangible asset of $1.4 million which is being amortized over 10 years.
The amendments to the Marketing Services Agreement and Master Services Agreement are part of a broader transaction between Atrinsic and Brilliant Digital pursuant to which Atrinsic will acquire all of the assets of Brilliant Digital that relate to its Kazaa digital music service business in accordance with the terms of an asset purchase agreement entered into between the parties. The purchase price for the acquired assets includes the issuance by Atrinsic of an additional 1,781,416 shares of its common stock at the closing of the transactions contemplated by the asset purchase agreement as well as the assumption of certain liabilities related to the Kazaa business. The closing of the transactions contemplated by the asset purchase agreement will occur when all of the assets associated with the Kazaa business, including the Kazaa trademark and associated intellectual property, as well as Brilliant Digital’s content management, delivery and customer service platforms and licenses with third parties, have been transferred to Atrinsic. The closing of the transactions contemplated by the asset purchase agreement is subject to receipt of all necessary third party consents as well as other customary closing conditions. At the closing of the transactions contemplated by the asset purchase agreement, Atrinsic has agreed to appoint two individuals to be selected by Brilliant Digital to serve on Atrinsic’s Board of Directors. In addition, at the closing, each of the Marketing Services Agreement and Master Services Agreement will terminate.
When I got into this stock in early February, it was my understanding from the latest 10Q that the affiliate network was taking off, and they were beginning to shed the losing aspects of their business. Now, with the most recent bogus PR, it now strips away the most profitable aspect of this business.
2 potential scenarios:
1. BDE and ATRN are entering into transactions that are complete losers for ATRN, and we'll be left with nothing; or
2. There is some credence to the notion that Kazaa is really something, and that's where any value is. Obviously, the music subscription business was BS, so Kazaa must be something else.
I wish they would just announce their intentions to shareholders in order to create value. Obviously, this plan has been in place since 12/1, when they wound down Kazaa...
More later, gotta run!
Institutions!!!!!!
Institutions!!!!!!
Because...
1. Didn't we confirm that the bogus PR was from Dyne's counsel?
2. If true, Fong was as vague about that PR, as he has been about this next glorious foot in the ass.
3. What is left of the company after they wound down what generated 32.5% of revenue in one measley quarter?
The more time that goes by, the more they have an opportunity to strategize how to F the little guy...
AMHO of course.
BLOW UP THIS PHONE NUMBER FOLKS...
i.e. everybody call
Problem is...
Didn't Kazaa default back to BDE in one of the more crooked deals in decades?
I think the announcement is going to be Craig Campbell IMHO
I think the way this Board has acted is total BS. Fine, you wanna go dark...do it, but not on the backs of shareholders you purport to represent in an effort to maximize shareholder value. What sense does it make to have a client list of 500+, growing transactional revenue that is extremely profitable, and when you fail to sell it, you shut it down?
What revenue is coming from where now, especially with ALL the heavy hitters at the co. gone? Go dark on REPORTING, but if you gave a rats ASS about shareholders, you'd at least communicate with them in a way that doesnt reak of shady.
IMO...the company is being stripped of assets behind the scenes, and they are trying to figure a way to F us all so that their tracks are covered. What a bunch of rich, pompous, thieves that will hopefully share a super hot seat in hell. It's gonna take legal action to get any value for us.
Mine, in my measley position as an insurance salesperson...is 2 years. Guaranteed that for a public tech company, those sons a biatches are AIR TIGHT!
In some cases, yes, but they rely on information provided by FB during that process. Once underwriting crunches the numbers, they'll put fair value to it. I personally think FB did a 180 at the last second on revenues, but the UW team in a precarious position, even though the value was set, they back peddled, but the UWs legal team will say "this is what was given" and the hammer falls where the buck stops.
Just sayin' how it all works.
Looooooooooooooong LEGAL FIGHT ahead...that may be uninsured.
The fly in the ointment is if the insurance carriers back off and exercise their exclusions. FB must have a D&O tower of at least $500M to $1B in coverage, at least. They'll need every penny to fight lawsuits and pay judgements, and they may begin conserving cash to do just that.
Perhaps this was a package deal being negotiated with none other than Facebook, and, the cost was too high for FB, considering litigation is going to hammer them.
So...
ATRN and MOTR decide they can join forces, develop a phone for Facebook, have them use it, increase revenues and plop this sucker down on their laps and say:
We just created $2B in revenues for you, for which we make commissions (substantial BTW). Now you can buy the package deal...at a higher price.
Problem...
ATRN goes private, MOTR gets all the love, and we get a nominal value for our shares...which $.72 is nominal if you ask me!
And I can tell you this...the whole FB debacle blew up in their face, and they may be saving $$$ for a long fight. If they violated any law, even if there is an allegation of self dealing a law breaking, D&O Insurers will exercise their exclusions, in which case, FB needs all the cash they can get!
http://www.propertycasualty360.com/2012/05/29/facebook-gives-insurers-do-jitters-on-future-ipos?t=es-specialty-business&utm_source=PC360DailyeNews&utm_medium=eNL&utm_campaign=PC360_eNLs
I think Chade's scenario is plausible about news...
He's always indicated he expected something by May 31st. Tomorrow is D-Day IMO!
The more pertinent question is...
Why is CSTI shorting the stock or diluting the hell out of shareholders? It's one or the other, because there's NO WAY IN HELL he has enough shares to keep up this torid pace.
Will we be left with a shell co. with no ees? The communication here is f'n awful!!!!!!! Worse than awful....
Dont think 'ship', think 'buoy'...
MOTRN....as in pain killer.
What he 'wants' and what is 'reality' are two different things, especially since a BOD that could buy him 100 times over is calling the shots.
Several of you said so yourself.
Bull $ hit PR...tanked stock to .03...
Panic...
More Panic...
Stock floats sideways, then down...
OH YEAH, Fong leaves ATRN along with other important employees...
Wait for it, wait for it...
What are you waiting for? I have no idea...
48.858M
86M shares...
$.57 / share
From their 10K...
http://www.sec.gov/Archives/edgar/data/1336691/000133669112000014/motr2011123110k.htm
Cash flows from investing activities
Purchase of property and equipment (9,632 ) (8,288 ) (4,890 )
Capitalization of software development costs (7,520 ) (9,132 ) —
Acquisition of assets held for sale —
—
(1,301 )
Payments for business acquisition (48,858 ) —
—
Proceeds from sale of discontinued operations —
—
300
Maturity of held-to-maturity investments —
—
5,425
Proceeds of assets held for sale —
1,199
874
Net cash provided by (used in) investing activities (66,010 ) (16,221 ) 408
Well, he stands to make a nice sum if he hits certain targets...
EXHIBIT B
Motricity Target Bonus Percentages by Job Title
Target Bonus Percentages by position or job level are as follows:
Position / Job Level Target %
Chief Executive Officer 75%
President Mobile Marketing 70%
President Enterprise 50%
President Carrier 50%
Chief Financial Officer 60%
VP/SVP [*****]
Director/Senior Director [*****]
Manager/Senior Manager [*****]
Individual Contributors [*****]
Support (Non-Exempt Employees) [*****]
WTF...
Atrinsic and MOTR are in litigation??????????
I say it's grab your ankles time folks...
Director's of Financially Solvent Companies owe a Duty of Care to the Corporation, and a Duty of Loyalty to the shareholders. End of story...
If there was something of value that, over the last 5 months, had been sold out from under the corporation, that breaches the Duty of Loyalty, as they prominently displayed self dealing. Self dealing is a killer in the court system...
A securities law firm would look to take on a case in the event that the real intrinsic value of the corporation was sold or given away, and not realized through improper transactions. I'm talking about high powered firms...
It likely would drag out for years...but make no mistake...self dealing is a FEDERAL CRIME, uncoverable by D&O insurance, and prosecutable by law...
Restitution therein lies the payments to stakeholders, but after everyone gets done chewing their fat off the bone, we're left with a bone.
WTF.
If they make it into a shell company, there will be over 500 SEC inquiries based on their last quarterly report. Plus, I'm pretty sure lawyers will begin crawling up their ass as the BOD and associated transactions / moves get torn apart.
If this is indeed worth billions, big time securities lawyers will have ZERO issue fighting this one out at length with these crooks.