Photon Group to acquire Dark Blue Sea.
Does a nickel make all the difference in the world?
Dark Blue Sea has accepted (pdf) Photon Group’s takeover bid after Photon upped its offer from 30 cents per share to 35 cents per share. In a joint statement, Dark Blue Sea Chairman Vernon Wills stated “We are pleased with the increased offer. It is in the best interests of DBS that this transaction is concluded as promptly and efficiently as possible.”
Let’s rewind a little bit and see what Wills and the board at Dark Blue Sea, parent company of Fabulous, had to say about Photon Group when it wanted to insert two of its own onto DBS’ board (something it will do after the takeover).
Photon may potentially change the strategy of Dark Blue sea in a way that will benefit Photon shareholders and not all Dark Blue Sea shareholders…The Directors of Dark Blue Sea believe that Photon is looking at Dark Blue Sea as an opportunity to reduce their debt be either selling the company, introducing significant debt onto Dark Blue Sea’s balance sheet by buying one or more of Photon’s businesses, or starting aggressive business activities to boost short term profitability at the expense of longer term shareholder valueâ€.
That was before Photon’s 30 cent offer, and also before the 35 cent offer.
Is the offer of 35 cents per share enough to change DBS’ mind that Photon is looking at the opportunity as a way to reduce its debt or over-leverage DBS? Or does it just mean that at 35 cents, the board is willing to jump ship and feel lucky to walk away with what it got?
Or maybe it was just shrewd negotiation. But it’s a fair question to ask if you’re a Fabulous customer.
Jay says
“Or does it just mean that at 35 cents, the board is willing to jump ship and feel lucky to walk away with what it got?”
Unfortunately I think that is correct. I started moving my domains months ago to godaddy as I got tired of hearing the repeated takeover bids and knew that it was only a matter of time, Fabulous could have been the best ever but I doubt that will happen now.
Snoopy says
“That was before Photon’s 30 cent offer, and also before the 35 cent offer.”
Well they (Photon) are making a cash offer so why should shareholders care once they have banked the cheque? The comments before hand were in relation to the company wanting board seats without having actual control of the company.
Having said that I doubt Photon ever had any grand evil plans. They bought in initially at a very high price (would have a significant loss on their holding) and I would imagine they just want do the takeover and get on with things.
Andrew Allemann says
Snoopy – right, we know what it means for the shareholders. So the question is what does it mean for Fabulous’ customers?
Matt says
Can anyone tell me what this means for Fabulous?
Matt says
Or at least what you think it means for Fabulous?
Stephen Douglas says
Someone chose to move their domains to Godaddy because of fears about Fabulous? Now THAT’S a wise choice. lol
I predict Fab will still move forward as one of the best domainer registrars. GoDaddy will move forward as one of the best ways for triple upsell pages generating so much extra cash they can take out Superbowl ads with objectified women as the “reason to buy a domain from GD”.
Domain Investor says
I hate to say it but I agree with Stephen.
🙂
I trust Fab. more than ever. And, much more any any other registrars that I use.
Registrars like Enom, Moniker, Godaddy, etc are predatory. You don’t see that with Fab.
And, under the new (complete) ownership, I don’t see that changing.
Most domainers should be running towards Fab rather than running away.
I’m sure we will see add’l promotional deals from them. Proton will want to show increased revenue in the coming quarters.
Stephen Douglas says
@ Domi — Perfectly said!
(Also the part about “trusting Fab more than ever”)
😉