Genius Brands International Inc (GNUS)

[moneym8ker]

It doesn’t make any sense at all from a GNUS shareholders perspective.

GNUS is bleeding cash on a quarterly and annual basis.
Just to survive they very heavily diluted the common shares and this WOW deal does not (AFTER WOW EBITDA) even turn GNUS into a near term profitable per share investment.

A very clear example is that the most recent quarter (MRQ) very clearly showed a loss per share of $0.02 on 300,600,000 shares or over $6.5 million.

WOW’s EBITDA annually doesn’t even cover a quarter of the annual losses (2020 and YTD) for GNUS.

They’re throwing $53 million dollars into WOW and it is only accretive to the extent THAT MAYBE if GNUS actually runs their company responsibly that they may come close to breakeven versus continued losses.

In other words…today’s 20% haircut may simply have been a haircut for a person who is going bald anyway.