Okay, Geo watchers, Moxy Media, the company formerly known as Geosign is back in the news. And just like you can judge a man by the company he keeps so can you judge a business by its corporate bedfellows. Geosign wants to team up with Avid Life Media Inc., the parent company of dating websites such as CougarLife.com , EstablishedMen.com and the notorious AshleyMadison.com for aspiring adulterers.
The Globe and Mail reports:
Avid Life will use part of the money it raises in a private placement to acquire privately held Moxy Media, an online advertising sales company based in Guelph, Ont., that runs more than 300 websites.
The merger would create a far larger, and more diverse, media company.
Moxy reported sales of $192-million and $27-million of EBITDA in 2009, according to documents used to market the deal. After the takeover, Avid Life will list on the TSX Venture Exchange or Toronto Stock Exchange by staging a reverse takeover of a shell company.
I must confess I’m somewhat surprised by that $192 million in ad revenues. How is Moxy still getting traffic to its websites without help from Google AdWords? Where’s it coming from? Or are these fantasy figures designed to fool suckers like American Capital Strategies.
My suggestion: DO NOT BUY STOCK!!!!