I agree. Andy seemed to go for lowered expectations when he mentioned the buyout value of DIC. It's a bad attitude to expect shareholders to wait until he sells the company to unlock value.
No one on the call brought up the fact that Secret Millioaire's Club is in year 4, 5, or 6 (depending on where you start. And Thomas Edison's Secret Lab is in its fourth year of being out. Not much fruit coming off of them. They are not billion dollar IP.
It looks like the Netflix deal isn't as bad as I thought. If GNUS can get costs down to $200K per half hour, it should generate a small profit (even after Andy's producer fees). But, merchandising sales need to do the heavy lifting. Andy didn't mention any specific products.
I hope they are planning on releasing a DVD set of season 1 loaded with extras (blooper reel). It could sell really well.
I'm also thinking that all 30 episodes in pre-production are "Llama Llama", regular fifteen episodes for season 2 and 15 holiday episodes. It could double the revenue.
Andy did mention that the two "Llama Llama" trailers garnered 2 million views before the series came out. That wasn't shabby.
Andy missed the opportunity to talk more about merchandise sales for "Llama Llama" and "Rainbow Ranger". It would have been a more upbeat conference call. They could be selling tons of stuffed Llama Llamas and red pajamas.
Edit
They could be selling tons of t-shirts, Llama Llama, Mama Llama, and Where's Papa Llama.
