Elite XC: Pig With Lipstick?

Written by: Mat Houchens

Tagged with: $55 Million Debt, Elite XC, Elite XC Buy Out, Pro Elite Buy Out, Showtime to buy Elite XC, Showtime to buy Pro Elite

Saturday, September 20, 2008, 0:15

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I’m sure most of us have heard about the 88.5 billion dollar bail out of huge national insurer AIG recently. The federal government bailed out the large insurance company by taking 80% or so of it’s stock. While Elite XC isn’t anywhere near this mark in money, relatively speaking it’s rather close comparing it to it’s realm of business.

There’s been talks about Showtime possibly buying out Elite XC taking on it’s debt as well. Showtime has publicly filed with the SEC that it has entered into talks with Pro Elite to purchase the business. It’s reported that Pro Elite is $55 million in debt currently. Showtime holds around 20% of the share of Pro Elite already but are looking to gain a majority stock of the company.

What does this mean to us as fans? It’s kind of like getting a pig with lipstick on it. It’s still a pig. I’m not sure Showtime would be able to turn around the debt and make it profitable. Some drastic employment changes would be needed. There’s no point in purchasing and keep the same people in charge. Obviously they weren’t doing it right in the first place.