There is speculation on SeekingAlpha.com that Think Partnership (AMEX: THK) might spin off the companyâ€™s network division into a separately traded Nasdaq listed company named after its highly regarded â€œKowabunga!â€ unit.
According to a piece by John Gilliam, several large independent shareholders of Think Partnership sent a letter addressed to CEO Scott Mitchell and the Board of Directors in an effort to pressure management to spin off KowaBunga!
Think Partnershipâ€™s (hereinafter â€œTHKâ€) shares continue to trade substantially below what we believe to be fair value. We believe the companyâ€™s network division alone is worth 25 -30% more than the entire companyâ€™s existing market cap. The valuation trading range for Think Partnership stock leads us to believe that the network division is being wholly overlooked by the investment community because it resides under the THK holding company umbrella. We also believe that the considerable growth prospects of the companyâ€™s Kowabunga!, Primary Ads, ValidClick.com and SecondBite.com assets would be significantly enhanced if the company were valued as an independent entity.
As such, we respectfully request that the Board of Directors give due consideration to a spin off of the network division prior to the end of calendar year 2007 through an IPO of the network divisionâ€™s assets into a separately traded company called â€œKowabunga! Technologiesâ€. The THK network divisionâ€™s (hereinafter â€œKowabunga!â€) revenue run rate, growth trajectory and client list along with its placement in the hottest of hot sectors within the technology industry would make it an ideal candidate for an IPO.
More details at http://internet.seekingalpha.com/article/41003.