The $20M RGB Didn't Raise
5:05 PM -- RGB Networks Inc. was put a bit on the defensive last week when a report surfaced that the company had raised another $20 million in equity.
It turns out that the $20 million in question, and mentioned in an Securities and Exchange Commission (SEC) filing, was in fact tied to an issuance of new shares to help fund RGB's recent acquisition of RipCode Inc. (See RGB Tunes Up Mobile TV With RipCode Buy.)
But to prove that you can still count on certain things, RGB CEO Jef Graham is still talking about taking the company public; it'll just happen much later than originally expected. "We think we can IPO next year," Graham told me at last week's SCTE Cable-Tec Expo in New Orleans. (See RGB Still Gunning for an IPO .)
He says RGB is profitable, so why this seemingly obsessive persistence about going public? Isn't going (or staying) private a more stylish option these days? (See CommScope Rockets on Takeover Talks .)
Much of this dogged determination is tied to RGB's grander M&A ambitions. It can continue to do relatively small private-to-private deals, but would need the IPO to go after bigger game that can help the company continue to grow and tap into new markets.
"I want to be a broad-based video supplier," Graham said.
In the meantime, he claims that RGB is getting traction with its multiscreen gateway video processor, and expects to announce service provider deals shortly. (See RGB's TV Everywhere Offer: A Video God Box .)
Further out, it's also developing an Access Shelf component that would fit into the "modular" implementation of Comcast Corp. (Nasdaq: CMCSA, CMCSK)'s Converged Multiservice Access Platform (CMAP) project. But there's a lot of work to be done. RGB, along with other suppliers, isn't expected to deliver those products until the fall of 2012. (See RGB Targets Comcast's CMAP, Comcast Proposes Its God Box , and Comcast God Box Also a Green Box.)
— Jeff Baumgartner, Site Editor, Light Reading Cable