Carolco buys stake in movie company.Carolco buys stake in movie company Despite recent, potentially disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. events at Carolco Pictures Carolco Pictures, Inc. was an independent production company, that within a decade went from producing such blockbuster successes as and the Rambo series to being made bankrupt by bombs such as Cutthroat Island and Showgirls. Inc., the $164.6 million (1988 revenues) entertainment company does not appear to be breaking stride in its fast-paced Adj. 1. fast-paced - of communication that proceeds rapidly; "a fast-paced talker"; "fast-paced fiction" fast - acting or moving or capable of acting or moving quickly; "fast film"; "on the fast track in school"; "set a fast pace"; "a fast car" growth. Last week, Carolco agreed to purchase a 33 percent stake in The Vista Organization Ltd., a New York-based movie company, in exchange for "puts" on Carolco's stock with an exercise price of $1.08 a share in two years. Such "puts" will require Carolco to buy Vista shares from put-holders at $1.08 a share in two years. Carolco can choose to purchase the shares in cash or Carolco stock, under the deal. If Vista shares are trading below $1.08 a share in two years, and put-holders tender 100 percent of their shares, Carolco would acquire the entire company for $23.76 million. Carolco also bought an affiliated company last week, The Vista Organization Partnership L.P., for $29.33 million in debt and securities. Separately, Carolco announced last week that it plans to increase its stake in Live Entertainment Inc., a Van Nuys-based video company. Carolco already owns a 48 percent stake in Live, and Carolco officials feel the shares have been undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. ever since the Aug. 20 murder of Live's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Jose Menendez. Live's stock price has dropped from a recent high of $25 a share to $15.75 a share as of last week. |
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