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Dark Blue Sea Accepts PGA Buyout, What Does it Mean for Fabulous?

November 30, 2009dark blue sea, Domain Registrars, Domaining, Domainnamewire, fabulous, photon groupComments Off on Dark Blue Sea Accepts PGA Buyout, What Does it Mean for Fabulous?

Photon Group to acquire Dark Blue Sea.

Dark Blue SeaDoes 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 value”.

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.


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Related posts:

  1. Takeover Bid Launched for Dark Blue Sea
  2. Board Battle Erupts at Dark Blue Sea
  3. Photon Group Continues to Buy Dark Blue Sea Shares