Chicago, Illinois – (via THE HOSTING NEWS) – August 26, 2005 –
It has been reported by the editors of
the FindProfit newsletter, that billionaire Mark Cuban has disclosed a stake in Tucows (AMEX:TCX). This is in addition to his ownership of more than 13% in Register.com.
Over the weekend Cuban told a New York Times reporter that his TCX holding was ”complimentary” to his stake in Register.com. Cuban has voiced his opposition to a $202 million takeover offer for Register.com from private equity firm Vector.
After Mark Cuban disclosed his stake in Tucows, shares of the domain registrar and Internet services firm went up nearly 20%. Cuban disclosed that he now holds an almost 9% stake in Tucows.
In a 13D filing with the Securities and Exchange Commission, Cuban revealed that he now owns more than 6.11 million shares of TCX, or an 8.9% stake in the company. Cuban began buying in June, securing 3.3 million shares in a range of $0.94 to $1.04 per share between June 21st and July 15th. Cuban then added to this stake beginning on August 11th, when he bought 2.5 million shares at $0.90 per share via TCX’s secondary offering, in which existing shareholders sold 21.82 million shares and the company sold 410K new shares. Cuban has bought another 311,700 shares in a range of $0.87 to $0.92 since then, with the most recent buy coming on August 19th. Cuban’s cost basis on his TCX holding is 96 cents per share.
These developments have spawned speculation that a merger between Register.com and Tucows may be in the offing.