investora2z Saturday, 11/16/13 07:06:37 AM Re: None Post # of 35808 While the lawsuit is moving forward as per schedule with the Markman hearing in June, the company has been making forays into new high potential segments. With the all share acquisition of Avcom, the company has entered into the social casino segment which holds good potential for growth over the next few years. The fantasy sports and online / mobile gaming space, where MGT is building its presences through FanTD and Hammercat studios, also hold a lot of promise. These three businesses are expected to be the real game changers for the company in the long run. The management will need to work hard to build these businesses so that they can start yielding tangible results. The acquisitions so far have been mainly funded through equity issue, and hence the sellers who hold the shares may continue to have interest in the future success of MGT. Even in the case of the Avcom acquisition, the future share based payments are based on achievement of certain revenue metrics. In an article on seekingalpha, the value of this acquisition was put at around $1.5 million upfront (491,000 shares valued at current market price) and nearly $1 million earned-out payments (330,000 shares) over 18 months. Avcom founder will be the GM of MGT Studios managing the online and mobile gaming part. This makes the sellers keenly interested in the future success of the company. It will take time for these three businesses to grow and develop, but it is good that the company has entered into these high potential segments without much cash outflow. Regarding the lawsuit, the seekingalpha article has calculated the value of the share at around $5.10 even if it gets a settlement. MGT's amendment of the complaint in September 2013, to include the potential infringement of Patent '554, has only added to the possibilities.