I am encouraged by this news. I have long felt that Reuters is dramatically undervalued by the analysts because it has so many parts, with so many models, that they just get frustrated and slap a discounted cash flow value on it.
Letting Instinet go out will unlock significant shareholder value for RTRSY holders. Further, it will give Instinet direct access to capital markets to raise funds, give them the right currency to acquire where that makes sense, and of course give them the incentive package required to attract and retain the best management team.
I really hope that London's letting Tibco out, and now perhaps Instinet is the start of something big! If so, it will be wonderful for many businesses, lots of my friends (who work at Reuters or Reuters subs), and most importantly for the shareholders.
Rick. |
