Vivint Valuation Falls $1.5 Billion
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger.
Inside this note, we examine what happened, what is wrong and how this fits into broader troubles for the residential market.
Valuation ****
***********, ****** ********** ****** **** ** ** ****** at * $*.* ******* *********:
**** ** ****** ******* ********** ***** of $*.* *******, ****** ** *********** to **** ******** ** $*.* ******* for ****** **** ***** *** ******** EBITDA ** $*** *******, ******** ** Adjusted ****** ******** ** ************* **.**.
***, **** *** **** ******* ** just $*.* ******* ** * ************* lower ********,**********:
*** ********* ******* *** ******* ********** value ** ****** ** ************* $*.* billion, ******** ** ********* **** ******** EBITDA ******** ** ************* *.***
**** ** * **.*% **** ** valuation ** * ******.
Debt ***
********, **** ********* ***** ** *** debt *************:
*** ***** *** ******** ******* **** 5.2x ** *.** *** */**/**** ******** Adjusted ******, **** ************* *** *** proceeds ******** ** ** **** ** repay ****, ******** ** *********** ** Mosaic’s ****** ************.
**** ********* *** ****** * ******** as **** **** ****** ******* ******* fear ***** *********** ** **** *****. Originally, ** *********, *** **** *** to ****** ******** ** *.** *** now ** **** ** **** ******* to ***** *.
*******, *** ********* ******* ***** ** move ******** ** ******* ******, ****** reflecting ******* ****** ******** ***** **** levels.
Residential *****
***** ** ********* ********** ***** *** the *********** ******. *** *******, ********* banker**** **** ****** *** '*** ******** models', ****** *** '*** ** *******', companies **** ***, ****** **** ******** and ******. *** ******* *** ********** becoming **** ********* ** ******** ** lend, **** ********* *******'* **** ****** ****** ** the *********** ******'.
Vivint **** ***
****** *** ******** **** *** **** aggressive ***** ******* ******* **** * new ********** ** '***** ****' ********* but ** *** *****. ***** ***** customer ************ **** *** *******, ** still ***** **** **** $*,*** ** acquire * ******** *** ***** ***** rates **** **** ******** ******** ***** the ********* ** **** **** **.*% to **.*%, ******** ** **** **********.
** *** **** ******, ****** *** driven *** ******* ** **** ** door ***** *** *** *** ******** is *** ******* **** ***** *** its ********* **** '*****' ****' *** outpace *** ******* ********* ** *********** tech *********.
****** ***** ******* *** ****. *** say ***** ** ******* *** ** goes *** ***** **** ** ***** you ** ******* *****.
**** ****** *********** ** ***** **** and ***** *********** *** ****** **************
* ***** ** *** ** ** friends ** ******, **'* **** ***** for **** ***** *** *** * very ***** **** ***** ***. ** tells ** **'* **** ** *** out ** ******. ** *****'* ***** good *** *** *******. ** **** without **** **** ****** ** ***.
**** **** ** **** **** ****.
****** *** ***** **** * *** of *** **** *********-- *** ********* based ** *** ******** ** *** cheap **** ** ******* ******* ******. When *** ***** **** ********** *** attrition ******* ** *** ***** ********.
****** *** *** *** **** ******** companies *** **** ** ******** **** plays. *** **** ******** *** **** should **** **** **** ****** **** to ******** **** ** ***** ******* the ***** ****** **** **********.
**** **** **** *** *** **** in *** ****?
*** ***** **** **** ******** *** with *********-********* ******** ********.
****** *** ************ ****** ** *** ********. *** stock ****** ******* ** *** **** next *******, **** ** *********** ** see ** ** ********** ********* ** decreases ** ********* ****.
******: ****** *** *** ******* ******* and **'* ** ~**% **** ****:
****** ***** *** ****** ************** ** just "***.***", * ****** ****'* * *******. Anyone **** *** ******** **** ****?
**! **** ****** **** *** **** on ******'* ***** ***** ******** ** ~50% ** ********* *******? **** ********** any *********** ** **. **** ******!
****** *** *******! * *** *** noticed ****, ***** ** ***** ***** chart:
*** ***** * ***'* ********** ** that ******* ***** *** *****, ****** is ******* *** ****** *** ** less **** $* *******. ****** ***** be ***** **** *** **** **** when ****** *** **** *** ********* at $* *******. ****** **** *** ideas ** **** ***********?
* ******** ** ***** **** **** for *** **** ***** **********, ******* to ****.
* **** ** ***** **** ******* to **** * *** “****** ********* alarm” ***** *** ****** ******. (****, kinda *******) **** ** ***** **** AI ** ******* *** ******* ****** and ******* *** ** ***/****** ******* voice ***********? ***’* ******* ** ************!
* ***’* ***** *** “****** ****” guys **** ** ***** ***** **********, but * ***’* ***** *****’* **** loyalty ** ******* *********** *** ** much *** **** ************ ********** **** service ** * ********.