Bluestone Financial Group has increased its stake in Spanish Broadcasting System to 14.5% and intends to push for a sale or merger of its all or some of its assets.
Bluestone, led by David Tomasello, stated in an SEC filing informing of the share purchase that he believes the company shares are undervalued and they should maximize value with the following moves:
believes Spanish Broadcasting Systems shares are undervalued and should maximize shareholders value by partnering, selling part or all of the Company to a bigger, global and well managed content and distribution media company like Sony Corporation who owns the content and conduit necessary to take Mega TV, La Musica streaming app and other SBS divisions to the next level.”
“By selling some underperforming and capital intensive assets like Mega TV, SBS will be able to deleverage the balance sheet, grow faster by entering into fast-growing business that are language agnostic yet appeal to a broader Hispanic population. In particular, a partnership or merger with bilingual ecommerce marketplace MercadoMagico.com , of which the Reporting Person owns a controlling stake through its investment in NeoMagic Corporation. Such partnership or merger would allow Spanish Broadcasting Systems to build a powerful Hispanic online ecosystem (ecommerce and entertainment) in the Americas and Southern Europe.