Tomahawk, WI 10/02/2014 (Basicsmedia) – Angie’s List Inc. (NASDAQ:ANGI) sale propositions could come to reality, sooner than later, after it paid attention to CNBC’s ‘Mad Money’ analyst Jim Cramer’s advice. The company has already structured its debt as it looks to make itself appealing to potential suitors. Cramer, on the other hand, believes that eBay Inc. (NASDAQ:EBAY)’s PayPal success in the future may be limited by competition as more companies continue to invest heavily on mobile payment systems.
“We will see if Angie’s List Inc. (NASDAQ:ANGI) can find any real suitor, but the key is that when the company floated the idea of a sale that I proposed. Its stock, which had been on a free fall went through the roof,” said Mr. Cramer.
It is being reported by the Financial Times that Angie has hired a number of bankers as it continues to look for any probable strategic options. The company has already entered into a credit agreement worth $85 million with TWC Asset management an agreement. The deal is made up of $60 million in senior secured term loan facility with the remaining $25 million on delayed draw facility.
Angie’s List Inc. (NASDAQ:ANGI) has already used a portion of the money from the asset management firm to clear debt from a previous credit facility thought to be about $15 million.
eBay Inc. (NASDAQ:EBAY) is set to spin-off its payment system PayPal after budging to pressure from activist investor Carl Icahn. The spinoff comes in the wake of Apple Inc. (NASDAQ:AAPL) announcing its mobile payment system, Apple Pay, which Cramer argues could be a big test for PayPal in terms of competition going forward
“Without more and better partnerships I think PayPal’s growth could be’ crimped by all the new competition in the mobile payment space especially from Apple,” said Mr. Cramer.
Carl Icahn has been pushing over the years for a spinoff arguing it would go a long way in guaranteeing shareholders value.