News reached us last week that there is still no signed contract between PRN and WalMart for media sales and worse still, Walmart still likely to spin off their own business to do the same going forward. At this rate Goldman Sachs will be lucky to get USD 8 Million for the business, let alone the USD 80 million they are allegedly asking for.
Goldman Sachs has already shopped PRN around the logical possible buyers; NBC Universal, Fox, ABC Disney etc. (interesting side note is that Roy Disney was one of the original funders of PRN) and is now attempting to sell a combined Convergent and PRN.
PRN like many other folks in the ad sales business sell Walmart first (i.e their biggest / best known network) and then sell the brands into their other networks. Walmart used to be a good 80% of PRN’s revenues and despite a solid attempt at diversification we doubt that the other networks PRN represents make up a significant portion of their revenue just yet.
If the Walmart contract was in place, PRN would have a greater significant value simply because of the eyeballs that come through the door, without it though you have to question exactly what PRN is worth?