To the Editor:
I cannot believe the deafening silence from the wireless community with regard to MobileMedia Corp.’s plan to extinguish the equity in the company.
If the industry has truly been maligned (which I believe it has been) and the prospects are as good as everyone claims (which I believe they are), then why haven’t any of the players acquired MobileMedia for the ridiculously low price at which it has been trading? I realize the company has high debt, but so do the other companies, and the creditors are certainly willing to negotiate the principal balances.
Aren’t 3.5 million customers and the company’s infrastructure worth something to the competition? The company is worth close to or more than its debt of $1.3 billion, or certainly has the ability to be worth more than the debt within a fairly short period of time-particularly after negotiations with the creditors. In addition, an acquisition would terminate the Federal Communications Commission hearing. Perhaps this is why MobileMedia is extinguishing the equity.
One-hundred and fifty million dollars and 97 percent of new stock. What a joke. What a selling point for upcoming industry initial public offerings.
Either the industry is truly doomed or everyone is in denial. The wireless industry should be outraged about this announcement. Which shares will be worth $0 next? Good luck with future IPOs. It’s not nice to fool small investors.
Remember the movie, “High Plains Drifter,” with Clint Eastwood? The town (wireless community) watches the marshall get whipped to near death (MobileMedia shareholders). Subsequently, the town requests the help of a stranger (the marshall/MobileMedia shareholders), and the town mercilessly suffers.
Perhaps you can share my concerns with your audience.
Gary R. Angelmyer
Santa Rosa, Calif.
