Shares of online ticketing and movie info company Hollywood Media rose 15% Monday after the company filed a 13-D disclosing discussions that may lead to the acquisition of the company. According to the filing, Coghill Capital Management owns over 10% of Hollywood Media, and its principals:
"are engaged in discussions with management and representatives of the board of directors of the Issuer concerning various strategic alternatives, including a number of potential extraordinary transactions that could result in a change of control of the issuer, and intend to evaluate confidential information relating to the Issuer in connection therewith. For this purpose, the Reporting Persons and the Issuer have entered into a non-disclosure agreement (including certain related provisions). The Reporting Persons intend to continue these discussions and to closely evaluate the performance of the Issuer, including, but not limited to, the continued analysis and assessment of the Issuer's share price, business, assets, operations, financial condition, capital structure, management and prospects."
Hollywood Media owns Broadway.com, Hollywood.com and 26% of MovieTickets.com. The company earlier conducted a strategic review to better realize the value of its assets, but terminated the review with limited results to the disappointment of investors (summary). MovieTickets.com competitor Fandango was acquired by Comcast (CMCSA) in April 2007 (summary).
In its most recent filings, Hollywood Media disclosed that it has over $34 million of cash on its balance sheet, equivalent to over $1 per share. The stock closed Tuesday in shortened trading at $2.84. HOLL was downgraded by Roth Capital November 16th, having closed the previous day at $2.97.
Full disclosure: Seeking Alpha founder David Jackson is long HOLL.
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