Replies to post #10050 on Genius Brands International Inc (GNUS)

[rickn23]

You are right about basing the purchase price on a multiple of revenue. I should not have implied that.

We have seen that GNUS paid $8.5 million in cash plus nearly 2 million GNUS shares (worth about $1.80 a share at the time) for ChizComm. ChizComm doesn't look close to producing that kind of revenue and ChizComm will generate a loss (negative earnings).

Acquiring WOW is a much better deal for GNUS than the ChizComm acquisition.

I am not saying WOW will make GNUS profitable, but, it's at least6 stepping in the right direction.



WOW's EBITDA is growing and WOW probably would have shown a profit for 2021, probably in the 5-6 cent US a share range. A P/E of 30 would place the share price around $1.50 to $1.80 (without any crazy speculative spiking).

Unless WOW will hit a shortfall in revenue, it looks like WOW shareholders would be better off not being acquired by GNUS.