I must confess, I don't know a lot about the particular kind of equity I'm about to mention. In fact, I've always thought it was kind of an odd, almost unreal stock that didn't make any sense on paper. But I was thinking about go.com the other day, the tracking stock that was issued to take advantage of Disney's web operations. We all obviously know how well that turned out. Yet, it occurred to me that many people wish Marvel and Pixar were still on their own and still had their own equity currency. So, I asked myself, what about tracking stocks? Would it be theoretically possible for Disney to sell shares of Marvel and Pixar into the public, thus raising money to pay off debt? And then, if the shares fell in the future, buy them back cheap? Or, if the shares became more expensive in the future, use it as a currency to fund the films?Again, I'm not up on the science of the tracking stock. I'm not sure I would want these other little equities floating around Disney. Still, I thought it would be interesting if, by luck, a tracking stock were issued and then it essentially devalued itself over time. Then again, what about setting up more of a trust -- I think that's the term I want -- that might pay out dividends but is designed to depreciate over time? I just find it fascinating that the market has so many ways of extracting value and raising money and was wondering what the group might think of tracking stocks of Marvel and Pixar (maybe even Lucasfilm?) to generate money that could further offset what was paid for them in the first place. Perhaps there are other kinds of offerings that could be made instead of a tracking stock.
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