MagicJack has got around 40 bidders since it announced for selling its business but still till now the company hasn’t decided the suitable one. Thus it’s not sure that the company still wants to sell the business or not.
MagicJack did a great Business in previous two years, but now the sales of MagicJack is continuously declining. So the company is constantly suffering from instability in their share prices. The fluctuation of prices is mostly towards downwards. If ever the Share prices rise then it not more than $2-4. The company was continuously looking for people to show interest in buying their business. Recently it was heard that they want to sell the company by the end of this year and to speed up its selling process company has appointed three persons. Don Bell, Izhak Gross, and Thomas Fuller were appointed to plan out the sale process and were given a target to not to sell it for less than $10. MagicJack seems like to be one of the cheapest devices available in the market. Earlier when it presented the offer for selling, then many bidders showed interest in buying the company share at the demanded price, but MagicJack didn’t finalize any of them for selling its shares. Yip TV was the one who placed the Bid for $9.50 per share, but still, it was not selected for selling the business.
Earlier It was being estimated that the MagicJack will be in a profit of $3.2 million if it becomes successful in the sale of MagicJack before the end of this month. But now the statement has changed a little bit that if they will be successful in selling the company within upcoming twelve months, then there would be a profit for $3 million. So this slight change in the statement indicates that MagicJack has postponed its selling and would try to work on its devices to bring up their values in the current market to sell it at a much higher price.
The MagicJack has gone through some confidential discussions with 13 of the bidders among the applied 40 bidders. The proposal from Yip TV is still under consideration despite its deadline in the upcoming November. The Board still thinks that the MagicJack can again get back to a growth and the company might come in profit. So they would no longer need to sell out their business. The company is trying to introduce more new plans and add new features to MagicJack to increase its market value. MagicJack is putting efforts to ease the access to their services by making their services available on the cloud. Doing this will keep the company in profit in spite of reducing their costs. “UnJacked” is the name given to this strategy. UnJacked will be sent for testing under Q3 to make this operational within the end of this year.
Thus it is not sure that they will either sell the MagicJack or not because even though MagicJack is going through a bad time, still the financial state of MagicJack is quite well as it has $48.3 million bank balance without any debt on it. So for more information keep watching all other upcoming updates on it.