Genius Brands International Inc (GNUS)

[rickn23]

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.