Will Neteller be bought and go private

Beanie · #1 12-27-2006, 11:25 PM

am I the only one that thinks this will happen. There would have to be buyers lined up to buy them and take them private.

I know the complications involve what the US can and can not do but the reality is they won't know for some time.

I expect this to happen pretty soon. Just a hunch.

Jeremy · #2 12-28-2006, 12:46 AM

I suppose it's possible Beanie. And after we almost bet what we bet in Amsterdam, I will not wager here.

But I would say the cost of a company like Neteller would be pretty high for the risk involved for buying them. Even if taking them private, you are rolling the dice that the U.S. banking system doesn't shut them out down the line.

If that happens, their value drops just like PartyGaming did on that sad day.

Brandon · #3 12-28-2006, 12:57 AM

I am changing the title so no one gets the wrong idea...like I did

Georgia Poker · #4 12-28-2006, 08:41 AM

I have a few thoughts on this that I'll share next week, I'm heading to the airport this AM and won't return till next week. Turks and Caicos here we come!

Beanie · #5 12-28-2006, 10:24 AM

Quote:

Originally Posted by Brandon

I am changing the title so no one gets the wrong idea...like I did

I forget what the title was but I was trying to pose it as "is it possible".

Thanks for the change.

Certainly there is risk, but there is potential reward. It is completely possible that this law is unenforceable, or at least there would be no point. When you evaluate a business you take these factors into account.

All someone would need to do is pay the value of the Foriegn customers. Is the stock price still really low?

freydaddy · #6 12-28-2006, 04:25 PM

I dont think neteller would sell, i think they will make the necessary changes to continue to serve the United States market, atleast this is what i hope will happen, if not like jerremy said there will be another company to pick up the peices!

Beanie · #7 12-28-2006, 05:11 PM

they will need to go private to stay in the US market. At least that is what most people think.

At this point it looks like they are goners.

PPP · #8 12-28-2006, 06:02 PM

$350,000,000 is a lot of cash to just buy something. You'd have to come up with a really accurate number of what it would be worth strictly without US customers... but then at that point, why would the company sell? If it was worth say $350m based on non-US action, what would they have to pay to get it? $385m? Even then, not a lot of private outfits have $35m to potentially just lose three months.

Obviously could be a great idea, but it seems like a great idea you wish somebody else would do just so you could see what happens.

stocktrader · #9 12-29-2006, 10:07 PM

Am i the only one who thinks this is a crazy idea? buying a company right before a major law kicks in?

If it gets bought out it would be after. The potential buyers would buy them like Party bought Empire - let Neteller bow down to their shareholders and let it crash. Then pick it up for 20 cents on the dollar. Then go back into the market if you want to.