IME the way to obtain a buyout in this current economy is to develop multiple income streams. The biggest effect of current economic conditions is that the days of speculative merger-mania, buyouts are less-common. In the past, hype alone fueled a purchase of a given entity.
Now actual income streams are going to be the determining factor--profit over expense etc. I read an article in the past few days about how Facebook has yet to really make a true profit. It still has investment backing of course but they're struggling in creating viable income streams.
They have a huge following and people love the service but in some ways IMO they neglected to generate revenue streams from all the structure. Let's face it when you put up a great deal of expense you need to make a profit.
A co. may claim they are worth 10 + billion all day but what is their income stream?
I think most would agree with me today that a co. bringing in several million revenue a month with 250K in expenses is a much-more attractive proposition in this economy.
The above type of ratios open the door for buyout opportunities. Who wouldn't want to buy a business with that kind of positive cash-flow? Or alternatively who would want to sell such a promising entity until maturity?
IME management should offer every hypster user a monthly offer via email for products/services etc. They should carve out an agreement with a major artist who is looking for a bigger market and who can bring their following to hypster.com
If Mr. 'Singer' has 500K rabid fans then bring those to hypster.com and in return Mr. 'Singer' gets an exclusive 'in' to 1,000,000 + people who enjoy music. They can direct sell their CDs, their T-shirts etc. and concert tickets to hypster.com community as well as the community they already developed.
Perhaps even at a bit of a 'discount' but only if purchased exclusively at hypster.com Those who join hypster.com get a base free service but also access to special promotions and discounts not offered elsewhere.
Management has a 'treasure trove' of possibilities in income streams for example 5% kickback on all online ticket purchase etc. but not so much that you discourage an artist from wanting to be associated with hypster.com The most rabid fans could pay 5.00-20.00 a month to be part of a 'private' artist Web site with encrypted passwords and special offers like backstage passes, autograph signings etc.
There are hundreds if not thousands of realistic ways to create viable income streams here. Now comes a need to get the ideas to not only paper but reality.
If we had 5-10 artists like above can you imagine the growth of hypster.com and the word of mouth and associated loyalty?!!!
We need to make some acquisitions in the sense of acquiring the loyalty and following of music artists. We will afford them a greater cut of their earnings, offer them a springboard to sell their products in return for bring their following into our fold.
