RealNetworks: Exceptional Value at Current Levels
Mark Gomes submits:
RealNetworks (RNWK) represents an exceptional value at current levels. The founder and CEO, Rob Glaser, was arguably operating too many business units. This resulted in a lack of focus and sub-optimal profitability. On January 13, Glaser stepped down in favor of Robert Kimball, who has been brought in to maximize shareholder value. Glaser will remain involved as the Chairman of the Board.
RealNetworks’ new mission will start by divesting some of its business units. Specifically, RNWK and MTV (VIA and VIA.B) have agreed to spin off Rhapsody, their digital music joint venture. This transaction is expected to be completed by the end of this quarter. RNWK also plans to shed its gaming business, along with any other unprofitable activities.
Investing, Long Term Investment, stock market | admin February 17, 2010
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