Attention IGN Shareholders

You’re stock is now worth $12.


From: http://biz.yahoo.com/bw/030502/25511_1.html

IGN Announces Going-Private Transaction
Friday May 2, 11:03 pm ET

SAN FRANCISCO–(BUSINESS WIRE)–May 2, 2003–IGN Entertainment (Nasdaq:IGNX - News) – home to IGN.com®, the web’s largest information and entertainment destination for video gamers – today announced the signing of a definitive agreement for the merger of IGN Entertainment, Inc. with a new corporation formed and majority-owned by Great Hill Partners, LLC. IGN co-founders Chris Anderson and Mark Jung (IGN’s Chairman and Chief Executive Officer, respectively) will hold minority interests in the new company, and each has agreed in writing to vote in favor of the merger. IGN will be the surviving corporation in the merger. Following the transaction, IGN will no longer be publicly traded.
Under the terms of the agreement, the new corporation will pay $12 per share in cash for each of IGN’s outstanding shares of common stock.

A special independent committee of the Board of Directors as well as IGN’s full Board, excluding Anderson and Jung, have approved the transaction and definitive agreement. In reaching its decision, the special committee and the Board received a fairness opinion from IGN’s financial advisor, Alliant Partners. The closing of the transaction is subject to a number of conditions, including approval by a majority of IGN stockholders.


New owners: http://www.greathillpartners.com/

It’s an interesting to see a dotcom company like IGN going private, especially via an outside private equity investment firm. It’s more common to see the old owners or founders re-purchase the existing shares or for these companies to be bought out…or just to go belly up.

Looks like Great Hill is a private equity incubator - they buy up companies, gussy up their earnings and then sell them down the road to an industry or strategic buyer.

I used to work in that industry - very interesting stuff.

What was it worth yesterday?

That press release was issued on Friday.

http://finance.yahoo.com/q?s=IGNX&d=c&k=c1&a=v&p=s&t=5d&l=on&z=m&q=l

Early trading this morning pushed the stock price right up and the buying started at like $11.50 when the markets opened this morning. If you didn’t have the stock before Friday, too late now. :)

$8

$12 is about 25x less than its high point after the IPO, by the way. If anyone else wants to give me a dollar and get back four cents three years from now, let me know, I’ll send you my PayPal address.

That’s what I figured.

Heh, fair enough. Still, it’s a decent premium for a stock that was a buck post 9/11. 12x return in 18 months for anyone who bought it then.