Chris DeMuth's Best Idea for 2022: Renren
Chris DeMuth discusses his best idea for 2022, RENN. RENN was on a previous podcast pitched by Ian Bezek as a legal play; since then, RENN settled with minority shareholders for a record payout. However, in December, RENN's shares sold off massively as a judge rejected their proposed settlement with minority shareholders and ruled the payout should instead go to former shareholders; Chris explains why he thinks that ruling is wrong and likely to be overturned.
Chapters
0:00\xa0Intro
1:50\xa0RENN background
4:20\xa0What's happened since the last RENN podcast
8:20\xa0The settlement announcement in October
12:35\xa0What happens in December / why the stock craters
19:45\xa0Why are current shareholders appealing the judge's ruling?
24:00\xa0What does a derivative suit mean and why is that important?
30:00\xa0Were there any precedents for former shareholders getting the settlement payout?
35:30\xa0Discussing the unique minority shareholder only payout
38:50\xa0Could the settlement be recut to pay directly to the company?
44:50\xa0What does the timeline going forward look like?
46:30\xa0What happens to the "excess legal fees"?
54:30\xa0Why a quick decision on the appeal could be good
57:35\xa0What odds does Chris give for the appeal winning?
1:00:10\xa0Bear push back: The Sprint / TMUS precedent
1:05:40\xa0Closing thoughts