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It's not easy being a micro cap company. But, with lots of capital sloshing around, why not just go private?
That's the thinking at Image Entertainment Inc. (NASDAQ: DISK), a licensee and producer of entertainment programming.
David Bergstein has led a group of investors for the deal (one is D.B. Zwirn & Co., which is a hedge fund). He is a film producer and has actually been buying up film distributors lately. The deal is for $4.40 per DISK share and represents a 35% premium over the past 30-day average price.
Image Entertainment has a film library of more than 3,000 DVD titles, as well as about 200 CD titles. The assets attracted the attention of Lions Gate Entertainment Corp. (NYSE: LGF), which made a $4 buyout offer last year. Lionsgate currently owns 19% of Image Entertainment's stock.
In the third quarter, Image Entertainment posted a loss of $3.5 million or $0.16 per share and revenues plunged 38% to $24.4 million.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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