Replies to post #10049 on Genius Brands International Inc (GNUS)

[moneym8ker]

Okay Rick…

I disagree with WOW. Yes their revenue is easy enough to find and so are their EBITDA info showing a near 10X multiple on earnings.

Don’t make the mistake of basing a purchase multiple off of revenues.

Any company that makes $200 million in revenue but that revenue cost $300 million is not worth a $200 million purchase price.

WOW is not worth their revenue for a purchase.
WOW is worth breakeven or a multiple of profitable earnings. In this case it appears that GNUS is paying a hefty multiple for WOW’s EBITDA.