Genius Brands International Inc (GNUS)

[rickn23]

The 6x revenue was more of a metric for finding a purchase price (of all of GNUS) based on all possible revenue, especially for video IP currently underutilized (like Secret Millionaires Club). If a company like Netflix purchased GNUS, they could put the entire video library to work world-wide, maximizing revenue from it. GNUS can't do that.

As for using P/E ratios, the number of shares may change drastically this year (and maybe next). As of the last 10K, there were almost 10.5 million shares outstanding. But, warrants, options, convertible debt, and convertible preferred shares can bring outstanding shares to about 22 million.

I still don't understand the difference between the gross and net numbers in the guidance. I'm going to assume that 2019 numbers are minimum and the rest (2020 and 2021) are useless.