Quote:
Originally Posted by useless
Wow that's a quarter of the purchase price no wonder they're going public with this.
More like 8% when you factor in what GBT would be expected to put aside for ROW repayment.
Reading between the lines....
$18 million is not an insignificant amount of money but when you factor in the other amounts it does seem pretty small.
Ferguson's debt allegedly owed from FTP is $14 mil so this almost washes out the debt reported recently and reports indicated that GBT tried to acknowledge Ferguson's debt by trying to include repayment via passive shares in the new company which the DOJ was against according to what we've heard.
Reports are that FTP shareholders only want a deal that will get players paid. If that is true then this deal we're hearing about will have a provision for those funds. We've heard that the DOJ will handle US players and GBT will handle ROW players.
Somewhere along the chain of deals there has to be a provision for that $150 mil to be accounted for ROW player funds stuck on FTP. I would hope that the AGCC would also not even consider relicensing FTP if those funds were not accounted for.
So I would expect that GBT needs to pony up $80 mil to buy FTP from DOJ and somehow prove they set aside $150 mil to represent ROW players for a total of $230 mil. That's only about 8% of what GBT would be expected to pony up not 25%
If the deal goes through GBT would still be able to go after the $18 mil in loans. They aren't just going to vanish but GBT is eager to get these resolved before the deal goes through and indicated that this might negatively impact whether the deal goes through.
It sounds like there might be some merit to the rumors that GBT might not have the money necessary to complete the deal (or doesn't want to fork it all over themselves.)
Hopefully for people that have money on FTP I'm reading too much into this.