Mike22332233
$PPLI
If $MGM could buy back 27% of their total shares at 50% of the current depressed price of $32.58 would they do it?
Let us figure out the purchase offer for PPLI that would accomplish just that.
The 66.8 mil shrs of MGM that PPLI owns equals $2.176 Bil, so they would need to net pay $1.088 Bil on the BO to get their shares at a 50% discount.
They could keep the PPLI VC portfolio (Turo plus more) and cash out $0.4 Bil later, and also keep $0.6 Bil of the PPLI cash ...
They could then IPO a clean, higher leveraged, print and digital media company at a conservative 1.1x sales and 7× EBITDA at $2.4 Bil.
So they could pay a total of $4.488 Bil ($1.088+$0.4+$0.6+$2.4) which equals $60.28 per PPLI share ...
The only question now is if Diller -- with overall 46% voting power thru class B holdings-- will accept this price ...
Upon dropping his MGM bid, Diller did signal he was willing to still do a deal together.
I expect a BO offer this week of $55 to $60 !!!
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