What is going on here?
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Family's past between 1930 to 1945? Please elaborate,,,,
quote:
what cengage may do best is demonstrate how, when given a chance, women and minorities of all kinds can be just as inept as any old white guy
You've been fooled. An old white guy runs Cengage. I would be interested to know what the Hansen family credo was between 1930 and 1945 and how they embraced their ethos.
Easy to be woke when you're unwilling to acknowledge your family's past.
GET ON THE TRAIN!
what cengage may do best is demonstrate how, when given a chance, women and minorities of all kinds can be just as inept as any old white guy
Greetings,
Once the earnings statement is released, it will be clear.
I will speculate but must preface this by saying I have no data without an updated filing due shortly.
My uninformed guess is the 500m is being invested in raising the firm's ability to borrow.
The private equity could be investing in Cengage's debt with a strategy to sell it, or it could be engaged in a purchase of 500m worth of shares from either an existing shareholder who is cashing out or new shares that are being created. Perhaps those shares pay dividends funded by debt that will eventually exceed the 500m investment.
There are many ways to make money by investing in failing businesses. I'm sure Apollo knows how to legally pursue these strategies.
Not a chance it goes public. Dog sh-t business. Single digit growth at best. But it’s at least predictable.
Paying off debts and trimming costs to show sustained YoY growth. Sounds like a near-term IPO or selloff with APAX cashing out and Apollo netting a fat stack of shares. My guess is we'll have a significantly different ownership structure in less than 3 years.
I get that people use this site to vent, but the doomers don't have the right read on the business as a whole. What this DOES mean however, is that Cengage wants to show sustained profit growth, and labor is an easy place to cut costs if the revenue isn't there.
Someone who understands finance can help me out here but in layman’s terms this means that APAX is willing to dilute its ownership in exchange for what most likely will be big fat dividends for members of its Cengage fund, debt pay down and some money to invest.
It means APAX either thinks less shares will be worth more in the long run or it’s recouping some of its investment. Probably a bit of both.
It’s why finance rules the world.
Another private equity investment. I'm sure this will end well.