Real Networks Share Price No Longer *BUFFERING*
Investors have met the decision of RealNetworks founder Rob Glaser to step down as CEO with a ringing endorsement. At $4.54, the company’s shares are trading over 17 percent higher on the news, which spiked the stock to a 52-week high of $4.59 Wednesday when it was announced.
Real’s (RNWK) share price Wednesday when we broke the news of Glaser’s departure? About $3.80.
Clearly, investors are hoping a shift in strategy will follow this sudden management reorganization and that it will transform Real into a more profitable company.
“There is clearly a lot of work still to be done at Real, but Glaser has set the foundation, leaving a pristine balance sheet, at least one business that is in great shape today (TPS), one that has tremendous value potential in the future (games), a couple of cash cows (RealPlayer, Superpass),” Morgan Keegan & Company Tavis McCourt wrote in a note to investors today.
“Glaser and Real management have also returned Rhapsody to a cash flow neutral position after years of significant losses, and based on an 8K, may be looking to divest more of its ownship in this business in the near term,” McCourt added. “In any event, there are plenty of opportunities for new leadership to create value from a base of some very unique businesses and capabilities.”
Indeed. First step: Unload Rhapsody and the games business.