peridotcapital Posted February 5, 2014 Share Posted February 5, 2014 I have just bought more BH. :) Gio I too added today at $413. This price makes no sense. Link to comment Share on other sites More sharing options...
pantheman Posted March 1, 2014 Share Posted March 1, 2014 Biglari Buying Maxim Magazine, Terms Not Disclosed http://online.wsj.com/article/PR-CO-20140227-916724.html Link to comment Share on other sites More sharing options...
giofranchi Posted March 1, 2014 Share Posted March 1, 2014 Biglari Buying Maxim Magazine, Terms Not Disclosed http://online.wsj.com/article/PR-CO-20140227-916724.html I don’t know Maxim, but I don’t like magazines in general… let’s hope he has paid a very low price… ;) ragu, any comment? Thanks, Gio Link to comment Share on other sites More sharing options...
wescobrk Posted March 1, 2014 Share Posted March 1, 2014 It was supposed to have sold for 28 million but that fell through. Zardari stepped in. Sardar is likely to have paid a similar amount. Link to comment Share on other sites More sharing options...
Morgan Posted March 2, 2014 Share Posted March 2, 2014 Maxim probably has the highest market share within its niche. I wonder what Sardar has planned for the magazine? Do a major online push? Are there significant revenues, and more importantly, profits online for the magazine? BH earned $140m GAAP in 2013 and $20-$30m GAAP or so 2010-2012. Lets just say he paid about $30m for the magazine. He also likely (hopefully) paid a small multiple too. So lets say Maxim currently earns $4m/year give or take a million. That seems pretty small in terms of the rest of BH and is also in a dying industry. Getting back to its niche, how likely will it be that he can double the profits from the magazine and in what time frame? Does he know much about the magazine industry? He obviously knows many things I don't. I am very curious to see what he does with this. I hope more information is disclosed. Anyone have anymore thoughts? Link to comment Share on other sites More sharing options...
MYDemaray Posted March 3, 2014 Share Posted March 3, 2014 alright, let's start the betting on when Sardar changes the name MAXIM to BIGLARI (for a fee, of course) Link to comment Share on other sites More sharing options...
rkbabang Posted March 3, 2014 Share Posted March 3, 2014 alright, let's start the betting on when Sardar changes the name MAXIM to BIGLARI (for a fee, of course) Yes within the first year. And of course every issue will feature his face on the cover. Link to comment Share on other sites More sharing options...
MYDemaray Posted March 3, 2014 Share Posted March 3, 2014 what I really want to spend my morning doing, is photo-shopping a mag cover for the next issue of BIGLARI with Sardar flanked by two scantily clad women, chowing down on a Steak-N-Shake burger on the front porch of a Cracker Barrel, but alas I have better things to do.....or do I? Link to comment Share on other sites More sharing options...
rkbabang Posted March 3, 2014 Share Posted March 3, 2014 what I really want to spend my morning doing, is photo-shopping a mag cover for the next issue of BIGLARI with Sardar flanked by two scantily clad women, chowing down on a Steak-N-Shake burger on the front porch of a Cracker Barrel, but alas I have better things to do.....or do I? Make it him standing in the parking lot of a Cracker Barrel, so you can show him standing next to his Lamborghini and the girls laying on top of it. Also, don't forget that the Biglari Magazine logo is his signature. Link to comment Share on other sites More sharing options...
peridotcapital Posted March 3, 2014 Share Posted March 3, 2014 http://nypost.com/2014/03/01/texas-investor-scoops-up-maxim/ "Alpha Media has finally found a buyer for its beleaguered Maxim magazine — Texas investor Sardar Biglari. Terms were not disclosed but sources said San Antonio-based Biglari Holdings paid between $10 million and $15 million. The laddie magazine lost an estimated $7 million last year on revenue of about $35 million, sources said." Link to comment Share on other sites More sharing options...
premfan Posted March 3, 2014 Share Posted March 3, 2014 Could be an okay deal. Cut expenses and show a profit. Why would biglari waste this time and energy on something that won't move the needle. Where is the insurance company he promised shareholders. Link to comment Share on other sites More sharing options...
giofranchi Posted March 3, 2014 Share Posted March 3, 2014 Ok. Now, let’s show the entrepreneur in each of us: If you were in Mr. Biglari’s shoes, what would you do with MAXIM, and how would you use its publishing infrastructure? For $10 to $15 million you got hold of a publishing infastructure already present in 75 countries... now what? Any ideas? Gio Link to comment Share on other sites More sharing options...
T-bone1 Posted March 3, 2014 Share Posted March 3, 2014 Ok. Now, let’s show the entrepreneur in each of us: If you were in Mr. Biglari’s shoes, what would you do with MAXIM, and how would you use its publishing infrastructure? For $10 to $15 million you got hold of a publishing infastructure already present in 75 countries... now what? Any ideas? Gio Given his taste in cars, I assume he bought Maxim for the same reason Donald Trump bought the Miss Universe pageant . . . and I don't think it was for a cash return Link to comment Share on other sites More sharing options...
constructive Posted March 3, 2014 Share Posted March 3, 2014 Ok. Now, let’s show the entrepreneur in each of us: If you were in Mr. Biglari’s shoes, what would you do with MAXIM, and how would you use its publishing infrastructure? For $10 to $15 million you got hold of a publishing infastructure already present in 75 countries... now what? Any ideas? Gio I'd increase targeted online marketing and marketing on university campuses, and stop doing business in the most unprofitable of those 75 countries. And try to flip it to Playboy or another strategic buyer as soon as I possibly could. Link to comment Share on other sites More sharing options...
premfan Posted March 3, 2014 Share Posted March 3, 2014 Ok. Now, let’s show the entrepreneur in each of us: If you were in Mr. Biglari’s shoes, what would you do with MAXIM, and how would you use its publishing infrastructure? For $10 to $15 million you got hold of a publishing infastructure already present in 75 countries... now what? Any ideas? Gio I would focus my time and energy on moving 585 million of shareholder equity forward. To increase my cult following and leverage that to get more deals. I surely wouldnt waste my time on such a small deal. I would try to keep my promise to shareholders on acquiring a insurance company. I would cut cost to the bare bone and keep whatever profit is left knowing i'm in a dying industry. Link to comment Share on other sites More sharing options...
Morgan Posted March 3, 2014 Share Posted March 3, 2014 Why would biglari waste this time and energy on something that won't move the needle. That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle? Link to comment Share on other sites More sharing options...
A_Hamilton Posted March 3, 2014 Share Posted March 3, 2014 Why would biglari waste this time and energy on something that won't move the needle. That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle? Maybe take Maxim name and go into hard core porn market? Not kidding. Link to comment Share on other sites More sharing options...
peridotcapital Posted March 3, 2014 Share Posted March 3, 2014 Why would biglari waste this time and energy on something that won't move the needle. That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle? Since he is keeping the management team I don't think it will take too much of his time. I'd bet he's definitely looking beyond print, and in that sense it could move the needle over time. He clearly likes good brand names and he got a pretty good one for ~$10 million. It could be a steal if he can get the magazine into the black by $5M/year and then leverage the brand and infrastructure into other areas. I would imagine the product licensing opportunities alone cold move the needle 5 years from now. I don't think it's a slam dunk but for $10M there are multiple levers to pull for it to wind up being a real bargain a few years down the road. I like the risk-reward at the bargain price he got it for even if at first glance it appears odd. Link to comment Share on other sites More sharing options...
Morgan Posted March 4, 2014 Share Posted March 4, 2014 Why would biglari waste this time and energy on something that won't move the needle. That's exactly what I'm wondering. Surely this will take up a decent amount of his time. What are the repuational costs for him if he fails? And the upside if he is succesful... right back to how will this move the needle? Since he is keeping the management team I don't think it will take too much of his time. I'd bet he's definitely looking beyond print, and in that sense it could move the needle over time. He clearly likes good brand names and he got a pretty good one for ~$10 million. It could be a steal if he can get the magazine into the black by $5M/year and then leverage the brand and infrastructure into other areas. I would imagine the product licensing opportunities alone cold move the needle 5 years from now. I don't think it's a slam dunk but for $10M there are multiple levers to pull for it to wind up being a real bargain a few years down the road. I like the risk-reward at the bargain price he got it for even if at first glance it appears odd. If he actually got it for ~$10m then yes, that was sounds like quite a good buy. Especially if he can make profitable soonish then leverage the brand some how. I suppose he must have some sort of plan for it. Fun to follow to say the least. :) Link to comment Share on other sites More sharing options...
giofranchi Posted March 4, 2014 Share Posted March 4, 2014 It could be a steal if he can get the magazine into the black by $5M/year and then leverage the brand and infrastructure into other areas. It is precisely those “other areas” I am trying to figure out… what are they? A_Hamilton suggested hard core porn… ;) well, besides that one, which are the plausible “other areas”? Gio Link to comment Share on other sites More sharing options...
ragu Posted March 4, 2014 Share Posted March 4, 2014 ragu, any comment? gio, Can't say I saw that one coming! It looks to me like BH weren't involved in the initial bidding. After the collapse of the Darden Jr. "bid", there was a potential second bid for around $20 million:http://nypost.com/2013/12/20/darden-not-alpha-enough-to-nail-maxim-mag/ I can't find anything on why that might have not gone through. It'll be interesting to hear from Sardar at the AM as to how this came about. Currently unprofitable business and desperate sellers might have been enough for the purchase price to have been a bargain. I can't see this in the BH umbrella for the long-term though and I suspect a sale might happen a few years down the road. As for plans, there's potentially this: http://variety.com/2013/tv/news/maxim-magazine-plans-cable-tv-network-report-1200609750/ Best, Ragu Link to comment Share on other sites More sharing options...
TheValueDude Posted March 19, 2014 Share Posted March 19, 2014 Looks like Biglari finally bagged an insurance company... http://www.prnewswire.com/news-releases/biglari-holdings-inc-acquires-first-guard-insurance-company-251047701.html Link to comment Share on other sites More sharing options...
MYDemaray Posted March 20, 2014 Share Posted March 20, 2014 Wait...truckers?...MAXIM?...it all makes sense now! Link to comment Share on other sites More sharing options...
Nnejad Posted March 20, 2014 Share Posted March 20, 2014 Plus, look at the products CCA sells. http://www.ccaindustries.com/ It's all coming together. Link to comment Share on other sites More sharing options...
ragu Posted March 20, 2014 Share Posted March 20, 2014 http://www.prnewswire.com/news-releases/biglari-holdings-inc-acquires-first-guard-insurance-company-251047701.html By writing business directly rather than through agents and brokers, First Guard enjoys one of the lowest cost structures in the insurance industry. The Geico of truckers insurance. Best, Ragu Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now