LBG Eyes Curve | Investor Sentiments Heighten Amid Negotiations

LBG is reportedly negotiating to acquire Curve, creating waves of anxiety among investors concerning the company’s precarious future. This potential buyout raises additional concerns as Curve deals with financial struggles, facing annual losses between $30-40 million.

Investor Concerns Intensify

Community reactions reflect rising apprehension about the implications of this acquisition. One commenter expressed worry, stating, > "As an initial investor, I wonder what this means for the shares we hold if a sale was to proceed." Users on forums are echoing fears that existing venture capital deals might benefit those investors first, potentially leaving ordinary shareholders with nothing to gain.

New Insights from the Community

Recent comments shed light on the financial realities of the situation. One user noted that the proposed buyout valuation ranges between £100-£120 million, marking a stark decline from previous funding rounds. Another remarked, > "I’d assume 100% wipeout," because, typically, venture capitalists hold shares that provide them downward protection.

There is also mention of Curve's mobile wallet technology being a target for LBG, suggesting their interest lies not solely in the business model but in the tech underpinning it. One comment said, > "Interesting analysis here Rob thinks LBG want it for the tech (mobile wallet)."

Financial Challenges Under Scrutiny

The weight of Curve's financial issues remains heavy. One community member commented harshly on crowdfunding platforms: "The scam that is Crowdcube continues - crowdfunding for an investor makes sense but in situations where you're coming in after the VCs, it's typically because the VCs don't want to put more money in."

Mixed Stakeholder Sentiments

Stakeholder sentiments are varied. While some express disillusionment, others retain a sliver of hope. One user shared optimism, stating, > "That could be interesting for the future," while contrasting opinions highlight a lack of faith in Curve's viability against competitors like Apple Pay.

Key Takeaways

• 📉 Curve's losses are substantial, ranging from £30-£40 million annually.

• 📊 Current buyout speculation puts its valuation between £100-£120 million.

• 💔 Investors fear they may end up with worthless shares based on VC preferences.

• 🤔 Mixed views on the acquisition’s potential—some see tech value, while others fear gridlock.

As this story unfolds, the critical question remains: Can this acquisition rescue Curve, or will it sink LBG into deeper waters?