ADW Capital Partners L.P., which holds 9% of IDW Media Holdings’ stock, has called to sell the company to a “strategic partner” in order to “maximize value of intellectual property.”
The request has been made in a form of an open letter.
“But what it does not mean is that our content is any less valuable. It simply means our Company does not have the resources / the right cost of capital to BEST monetize its large and growing IP/content portfolio.”
“…we believe the intrinsic value of the Company’s assets is far higher than the Company’s trading price would indicate. We believe the market is discounting the Company’s ability to financially monetize its IP portfolio given its lack of scale, operational resources, balance sheet, and/or willingness to monetize the Company through a sale.”
“I am asking management to do the right thing for all stakeholders today and publicly announce a strategic alternatives process and its engagement of a major investment bank. By seeking a strategic partner at this stage in the game, it should ensure that the Company can grow significantly without many of the competitive / cost of capital risks of staying a small and independent public company.”
It certainly is an interesting time for the company. Quite a lot of changes are already happening. What the future holds for our beloved brands in comic form, is yet to be determined.
You can read the full letter courtesy of Bleeding Cool, after the jump.