By now you may have seen/heard about all the commotion today about the [questionable] SEC complaint filed by Joseph Collins, PunchTV President, against the CEO Steven Samblis. See the press release of the filing here. We indicate “questionable” because although Joseph Collins posted he really did file the complaint… there is no complaint on file (at least published on Edgar) to be seen. AND… Steven Samblis posted a denial here. There is also a posting on the PunchTV Facebook page here that appears to be a further denial of the action. There is no indication of who posted the message, however it appears to have been posted by Mr. Samblis, or someone acting on his behalf.
This appears to be infighting between Joseph and Steven. This would not be uncommon for the two merged companies to have their owners clashing. In order to build a company like each have, there has to be egos at play here. As we understand the situation, Steve’s company bought Joseph’s company… and unless there is something in the details (fine print) of the acquisition contract that allows Joseph to cancel the contract due to a breach by Steven (and that’s what this may be, a move by Joseph to gain his company back)… Steven is in control. Also, its our understanding that Steven owns a majority stake in the newly formed company called IC Punch Media, Inc. Weather he retains his title of CEO or not… he still controls the company if he has a majority stake in it.
Its not hard to imagine that Joseph would feel he is losing control of his baby if Steven wanted to take the company in a direction that Joseph felt would be wrong, or not in keeping with his initial vision for the company. Its a shame for shareholders that if this really is simply infighting between men, that it had to spill out in public. This public airing of their dirty laundry so to speak could negatively effect a lot of shareholders. Although this controversy is still in its infancy stage… initial speculation is Joseph will end up being the spoiler here. This is NOT how you reconcile your differences !
Although we are very concerned that this will negatively impact the PPS, we remain optimistic that the damage will be short lived. Although this situation has the potential to do a great deal of damage to the company from a shareholder value standpoint (decline of the PPS)… the forward motion of the company could remain intact, and on plan. We remain optimistic that the 2 men will work out their differences and move forward as a team. After all… BOTH of them have a significant amount of shares in the company. If the stock tanks… their shares tank also, so they have a self-serving interest to rectify any differences they may have – and do it quickly ! However… all bets are off when egos get in the way of rational thinking. Hopefully these 2 men can settle their differences quickly and get back to building the company. Such would be in EVERYONE’s best interest !