Quote:
Originally Posted by oldjudge
Sam, I completely agree with you. Having said that, I think this was a bad move by Blackstone. The strength of PSA isn’t their grading quality; they are no better or worse than other graders. Their bedrock is their registry. I know the Blackstone guys are a lot smarter than me, but I don’t see how you crack this. Without a viable registry platform to compete with PSA I think you just become another grading company. I think they would have been smarter to buy SGC. At least that way they would start with a registry base, albeit a very flawed one.
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Jay, I hear you. I was very surprised by the $500mm valuation. My guess is that their comic and currency/coin business is the driver of valuation. But there’s so much PE money out there right now - I wouldn’t be surprised if they paid a heavy premium.