Quote:
Originally Posted by ohiobuckeyes
Hope not that would mean Manheim Auctions is looking for cash since both companies are owned by Cox Enterprises. Which has TV stations, Newspapers, Cable Company, Kudzu.com and Valpak.
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As I stated in the post above, I don't get the impression that AutoTrader's possible IPO is a signal that the parent corporation
(Manheim and Cox) needs cash, I think it's a strategic decision that allows the private equity firm the ability to easily access their capital.
Concerning Cox and Manheim, frankly it's never made any sense to me why Cox owns Manheim. Why does a cable company want to own an auto auction? I can understand why Cox would want to own AutoTrader since it follows the same advertising business model that cable companies and TV stations use, but what synergy is gained by owning an chain of auto auctions?
It's just a hunch, but my bet is the real reason for investigating an AutoTrader IPO is so Cox can strip AutoTrader away from Manheim and then dump Manheim at a later date.