CYOU - Phoenix New Media: Special Dividend Strong Asset Value Strong Brand And Weak Profitability
Phoenix New Media (FENG) invested $92mm between 2014 and 2016 to acquire a 37.6% stake in Yidian Zixun (????), a news aggregation site. FENG agreed in March 2019 to sell a majority of its holding for gross cash proceeds of $448mm (estimated $409mm after transaction costs) and will retain a 5.63% stake with an implied value of $79mm. The share price (net of the dividend described by management during the 1Q19 conference call) will be a bargain relative to remaining asset value. The company's strong media market presence provides potential for future