Another interesting acquisition by Yahoo!
Ironically, it wouldn't surprise me in the least if Yahoo eventually sets its sites on Modavox along with the likes of possibly Google, Microsoft or some other media organization.
We still don't know who the "large media companies" are that may be violating one of Modavox's main patents as referenced in their previous investor presentation but what if some of these companies were infringing?
With the fierce competition between these companies, especially Google and Yahoo, wouldn't one of them be anxious to acquire a profitable company possibly owning a very valuable patent in which the they knew the other party was also infringing upon? Would the acquirer then consider going directly after their competitor seeking substantial past, present and future royalties for the infringement of the patent in which they procured via the Modavox acquisition? What if the patented technology itself gave one company a strategic advantage over the other one?
I'm just thinking out loud. One thing for sure, it's going to be interesting to watch and see who goes after them and its not if but when imo. Secondly, based on recent action, the cat now appears to be out of the bag on our previously undiscovered little gem. I think many of us believed this day would come but recent M&A activity might cause some things to materialize even faster than the most bullish of us even expected.
That being said, my target for 07 remains $3-$5. If by chance, any of my hypothesis regarding them being an acquisition target happens to come to fruition as I now suspect it may, we may all be pleasantly surprised at where this one finds itself eventually trading.
Remember, if you value Modavox solely based on their unique visitors to just their Voice America Network, you have roughly 5 million unique visitors to the site and UTube was bought for $65 per unique visitor as Google intends to monetize them through on-line advertising. UTube owned no patents, had no content and was actually being sued over the use of others content, no technology and was not profitable. I almost wonder if whether maybe even UTube itself may be infringing on Modavox's patent? Regardless, I'm just talking the Voice America asset, don't forget about the rest of their already profitable business, growing marque client list and the AudioEye technology as well.
You guys can do the math yourself on a potential valuation if purchased based on the same metrix. The implications could obviously prove to be staggeringly positive for us Modavox shareholders. The nice thing with Modavox that I mentioned before is that management is taking nominal salaries and they own over 12 million shares or around 30-35% of the company I believe. Their goals are totally aligned with ours as shareholders.
Thanks again for the post on today’s Yahoo acquisition. It clearly confirms that we appear to be at the right place, at the right time and very likely riding a winning horse.
(Post taken from anbother board)
