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Originally Posted by Snowman
Ya, I thought that was pretty funny. I kept reading people saying PWCC was insolvent and that Fanatics likely scooped them up for merely the cost of their debt. Lol. Zero chance that is true. They likely heard that from the SCR clown. PWCC was and is a very viable business. They may have been temporarily cash poor, but that is quite different from being insolvent. No way in hell Brent and Betsy are just walking away with empty pockets after everything that they've built and everything that has happened over the past few years. They've been looking to get acquired for a while now. They were either going down swinging or getting paid and walking away while flipping all their haters/eBay the double bird on their way out. They probably walked away with an 8-figure payday.
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None of us have seen PWCC's books, but them selling into a down market suggests things weren't going well.
Also not a stretch to assume their lending program was in trouble - the assets backing the loans were off 25-90%, and the cost of capital had increased dramatically. Let's be real - this is a financial environment where banks have failed and are still in trouble - what are the odds their lending program was in good shape? That program going south could easily sink the ship. When business fail, they fail fast.
I also suspect the move off eBay hurt sales pretty dramatically, and they for sure lost significant share to Goldin.
Do agree the would have received a decent payday, their client base and technology has real value.
But there is no doubt in mind they sold for a fraction of what they would have exited for 12-18 months prior, and I wouldn't be at all surprised if they were buried in bad debt. Hard to believe that it wasn't a distressed asset when Fanatics acquired it.