XpresSpa Group Inc (XSPA)

[coolerheadsprevail]

So with a 700M settlement, if you say the sp will hit $12, then you are saying that the market will immediately reward VRNG with a multiple after only its first win? If not, then after taxes, there is no way the BV comes anywhere close to 12, especially with no ongoing source of operational revenue (and Facetones is too immaterial to even qualify for this conversation). Even without taxes, the BV doesn't hit 12.

Multiples are awarded for revenue streams that the market believes can be replicated. Not only does 420/664 have an extremely short shelf-life left, but even if VRNG can replicate another victory (ala MSFT), it is mathematically impossible to replicate the dollars simply because GOOG controls 65% of the search market. There is only a maximum of 35% left to monetize, with MSFT and YHOO each controlling ~15% each.

I would be interested in hearing your thoughts on this?