[FPSPACE] Re: The MirCorp soap opera continues

dconst+@pyrrhus.cimds.ri.cmu.edu dconst+@pyrrhus.cimds.ri.cmu.edu
15 Oct 2000 10:10:16 -0700

Re: MirCorp's potential revenues (and public relations)

From: http://www.msnbc.com/news/475645.asp?cp1=1

> That position appears to represent a stunning 24-hour turnaround: On Thursday,
> MirCorp Chairman Yuri Semenov doubted whether there was enough time left to save
> the beleaguered space station.


> “He [Semenov] understands the IPO plans much better, and he said he’s going to work
> with us,” Kathuria said. “He says he’s definitely on our side. … He says we just
> have to convince the Russian government that it’s a viable plan.”


> “Analysts told us we had an asset worth billions,” Kathuria said. And unlike the
> deflated IPOs of revenue-starved dot-coms, MirCorp has $50 million to $100 million in
> revenue waiting to come in, he said.
> The accounting firm of KMPG has assessed the value of Mir at $1.3 billion, Kathuria
> said. Several investment banks have already signaled a willingness to handle the IPO,
> Kathuria said, but none has yet officially signed on to shepherd the stock launch.

This all together looks very puzzling. $1.3B on one side and a miscoordination,
and turnarounds of positions, actions and words of Semenov and Kathuria on the other
side. It has been expressed on this mailserver before, and I would strongly agree that
the release by MirCorp its business strategy is is long overdue at this point. This
release is needed even by MirCorp itself - at least, it will help convincing everyone,
including MirCorp business partners - Energia and Russian Government, that this
business strategy exists.

Just a few common sense questions and observations:

As every enterpreneur course teaches: if you ever want to go IPO, start conducting
business as a public company from the very beginning.

Thus, why not to clearly and publicly identify what are the market niches the MirCorp
is targeting and which will make the company profitable? Where do these numbers - $50M
to $100M in immediate revenues are coming from? In general, yes, for example just
biotech R&D and products or Internet Application Services alone, have a potential to
make Mir Corp profitable. However, in either or another case, by now, the specific
products and services should have been identified and started to work on. If this is
the case, why to keep it in such a secrecy? 

Also, if MirCorp has indeed identified a winning market strategy, it could be
demonstrated via news releases and announcements of:
   partnerships, alliances, subcontracts, beta-products, calls for subcontract
   applications, beta-liquidity (dedicated customers' corps) size - everything which
   makes up for a comfortable, stabilized and reliable approach to a successful IPO
   and operating as a public company months or years beyond the IPO.

Why not to make own public relations easier?

On the other hands, the lack of this information creates perception that nothing
real (aside from space tourism deals) exists, just plans and dreams ...

This is just an observation - not a critique.

Constantine A Domashnev

Senior Research Programmer
Robotics Institute
Carnegie Mellon University