Posts Tagged ‘Jim Morrison’

Segel Makes Offer For Evine

November 20, 2017

The folks who are jockeying to acquire Evine put out a press release last week press saying that they will pay a 105 percent premium to buy the home shopping network.

The announcement was released by Marvin Segel, founder of Segel Vision LLC, who claims that the Minnesota-based Evine’s board has rebuffed his two attempts to contact it.

“The board refuses to hear the details of the offer,” he said in a statement,

According to Segel, under the proposed offer Segel Vision would make “an equity purchase of the operating subsidiary at a premium of 105 percent.”

The press release says, “By establishing a total equity value of $175 million for Evine, Segel Vision would, in effect, be paying $2.66 per share” for the company.

“Segel Vision’s financing is bona fide, and in place,” Segel said.

With the acquisition, Segel Vision’s team will merge Evine into Segel’s company Starshop, “an extraordinary millennial-friendly, influencer and celebrity-driven multi-experience shopping App, launched in partnership with SPRINT Mobile Network.”

Say what? What the heck does that mean?

“Acquiring Evine Live will revolutionize the retail industry through a proprietary mix of mobile technology and television broadcast, focusing on a side of the TV shopping business that has been underused by all shopping channels to date,” Starship CEO Jim Morrison — the former president of L’Oréal USA, not the decease singer – said in his statement.

And again we ask, what the hell is he talking about?

“We believe our team has the experience and contacts to focus more productively on nurturing the internet’s most popular influencers to endorse and adopt the products, together with the world’s most recognized celebrities — thus improving top-line growth and net profits,” Morrison said.

“Imagine yesterday’s on-air guests and inventors being enhanced by today’s vloggers and bloggers with millions of followers who trust them. It truly is the perfect storm of retail,” he said. “The 25-year-old TV shopping sales model has got to morph; and with Starshop’s mission to add over-the-top content created by social media influencers, we will literally add 15 million more subscribers to Evine Live’s current viewership on Day One.”

With a fercockt pitch like this, no wonder Evine’s board hasn’t responded.

Segel Vision has retained The Lucas Group, a strategy consulting and private equity investment firm.

In a statement, founder and Chairman Jay Lucas promises “to work with Evine’s board to optimize a transaction price and structure for all parties.”

Lucas added, “We ask that shareholders encourage their board to engage with us and evaluate our proposals in fulfillment of their fiduciary duties to maximize shareholder value. Our group is prepared to negotiate a transaction to purchase Evine Live based on total enterprise value. The premium which we are offering is three times greater than the premium that QVC just paid for HSN; and this, for a company that has had only three profitable quarters in 20-plus years.”

Segel Vision apparently has big plans. In tandem with its proposed merger and acquisition with Evine, Segel Vision claims that Starshop will roll out America’s first and only shopping channel in Spanish, called tuStarshop, which has already launched on mobile and e-commerce in affiliation with tuvisió, an Hispanic social community co-created by Philip Gabbard, who will become tuStarship’s group president and general manager.

“Spanish is the second-largest language in the U.S., yet there is no Spanish-language shopping channel,” Gabbard said. “With 57 million Hispanic households in the U.S., this retail opportunity will fill an obvious void.”

Good luck with that. All such prior efforts to do a Spanish-language home shopping network have failed, we believe. Sometimes there is a “void” for a reason: The concept doesn’t work.

“Following the acquisition, and along with exciting celebrity announcements, four proprietary online technology partnerships will be revealed,” according to the press release.

“With TV, with mobile — in English and Spanish — Starshop will house a new ‘six screen’ technology, and will even change the mobile shopping experience as we know it,” Segel said.

We’re not feeling this, folks.


Proxy Battle Looming At Evine

October 20, 2017

A not very pleasant scenario is being played out at Evine, with the son of the founder of QVC looking to sweep in and take over the Minnesota-based No. 3 home shopping network.

The Minneapolis Star Tribune reported that Marvin Segel and Jim Morrison, co-founders of a New York company called StarShop, have approached Evine’s management about taking control of the business.

The pair of raiders claim that Evine and old home-shopping methods are outdated.

“To jazz it up, Segel and Morrison, who is StarShop’s CEO, want to tap into social media influencers such as YouTubers with millions of followers in order to grow Evine’s audience and reach new consumers,” the Star Tribune said. “They also want to add a Spanish-language TV shopping channel as well as related Spanish content online and offer an enhanced experience on mobile.”

Hello, all the home shopping networks are big users of social media and have been creative in their use of mobile, which is helping to drive their skyrocketing digital sales.

The story says that Segel, the one who is the son of QVC’s founder, and Morrison tried to work with Evine by becoming minority shareholders and getting a seat on its board. Now, then want to “buy the operating assets of Evine for a 30 to 40 percent premium of its total enterprise value of between $140 to $175 million,” according to the Star Tribune.

“Segel and Morrison said it would leave Evine intact as a corporation so shareholders can reap the tax benefits of more than $100 million in net operating losses while pursuing other businesses,” the story says.

Evine has had many corporate battles before. In 2012, when it was still ShopHQ, dissident shareholders took control and named Mark Bozek as CEO. He was the genius who renamed the network Evine, and he got canned last year. Bob Rosenblatt took over.

Evine got a boost last year when investors, including music exec Tommy Mottola and designer Tommy Hilfiger, poured in $10 million for company stock.

Segel was at Evine as a consultant in 2008, and then worked at the company as an executive of vendor relations and business development before exiting.