Following on from my previous instapost here, my point is (as basically outlined in the "Could LIN TV Corp. [TVL] Acquire Looksmart?" post), is that Looksmart need only to sell a (say) 51% 'control' of the company to another interested party and on the basis of the company then returning $1.00 per share to shareholders (in the form of a special 'dividend'), to quash any further PEEK involvement, as such.
In a deal (if not a similar situation - with Yahoo selling back its shares to Alibaba), Yahoo says it will return $3 billion to shareholders. - With an approx. 17.2M outstanding LOOK shares (as issued), there shouldn't be any problem in doing so.
How much is Looksmart worth?
Holding over $20M in cash (and a current market cap of just $13.83M) some may say, 'not much', I guess.
Yet in the Co's (August 2nd) rejection of PEEK's Tender Offer, Looksmart have advised that:
Among its assets is LookSmart's market positioning as a:
*Scalable search advertising platform for ad networks;
*Independent ad network able to integrate Search and Display and deliver an efficient marketplace for advertisers and publishers; and
*Independent ad network able to deliver high quality traffic to advertisers and high value advertising opportunities to publishers.
To understand that 2nd position above, of having that 'Independent ad network [that's] able to integrate Search and Display and deliver an efficient marketplace for advertisers and publishers' is to understand exactly why Looksmart is surely worth a whole lot more, than even a $40M valuation.
It should be clear that Looksmart (in Q3) are likely to be on the brink of returning to profitability and are (uniquely) sitting on the very cutting edge of "the intersection of Search and Display"
Estimated percentage of global internet users who visit looksmart.com:
Any buyer (being of a 'controlling stake basis') would naturally then gain control of the Board, with it being conditional of any such deal.
This would then see the departure of Dexmier along with those of the other under-performing Board members.
Always, only an opinion.
Disclosure: Long LOOK