1437106--3/12/2010--Ascent_Media

related topics

{competitive, industry, competition}

{control, financial, internal}

{regulation, government, change}

{stock, price, share}

{customer, product, revenue}

{cost, operation, labor}

{provision, law, control}

{condition, economic, financial}

{capital, credit, financial}

{property, intellectual, protect}

{acquisition, growth, future}

{interest, director, officer}

{stock, price, operating}

{personnel, key, retain}

{operation, natural, condition}

{product, market, service}

{gas, price, oil}

{debt, indebtedness, cash}

{regulation, change, law}

{tax, income, asset}

{financial, litigation, operation}

Factors Relating to our Corporate Strategy We have a limited operating history as a separate company upon which you can evaluate our performance. Our historical financial information may not be representative of our results as a separate company. We may not be successful in implementing our acquisition strategy. We cannot be certain that AMG will be successful in integrating any acquired businesses. We may not be able to earn a rate of return on cash investments that exceeds the rate of inflation. An inability to access capital markets at attractive rates could materially increase our expenses. Factors Relating to AMG s Operations and the Industries in which AMG and its Customers Operate AMG s business depends on certain client industries. We cannot predict or quantify the impact economic conditions in the United States and abroad may have on the media and entertainment industries or the demand for our services. A loss of any of AMG s largest customers could substantially reduce its revenue. Runaway production and higher state taxes in California could adversely affect AMG s business. A significant labor dispute in AMG s clients industries could have a material adverse effect on its business. AMG operates in an increasingly competitive market, and there is a risk that it may not be able to compete effectively with other providers in the future. Piracy of elements may harm our business. Loss of key personnel could negatively impact AMG s business. Changes in technology may limit the competitiveness of and demand for AMG s services. Because AMG uses third-party satellite and terrestrial connectivity services to provide certain of its creative and content services, a material disruption to such connectivity services could have a negative impact on AMG s operations. While AMG believes that its business methods and technical processes do not infringe upon the proprietary rights of any third parties, there can be no assurances that third parties will not assert infringement claims against AMG. Risk of loss from earthquakes or other catastrophic events could disrupt AMG s business. Factors Relating to Global Financial Conditions The recent worldwide credit crisis and resulting economic downturn may reduce the level of investment by independent motion picture producers, as well as spending by other producers of filmed entertainment and television commercials, which would have a material adverse effect on our revenue and profitability. Disruptions in worldwide credit markets have increased the risk of default by the issuers of instruments in which we invest cash and other financial institutions. The failure of any banking institution in which we deposit our funds or the failure of banking institutions to operate in the ordinary course could have a material adverse effect on our results of operations and financial position. Factors Relating to Legislative and Regulatory Matters Our businesses are subject to risks of adverse government regulation. Failure to obtain renewal of FCC licenses could disrupt AMG s business. Factors Relating to our Common Stock We have a history of losses and may incur losses in the future, which could materially and adversely affect the market price of our common stock. We cannot be certain that an active trading market will be sustained, and our stock price may fluctuate significantly. It may be difficult for a third party to acquire us, even if doing so may be beneficial to our shareholders. We have adopted a shareholder rights plan in order to encourage anyone seeking to acquire our company to negotiate with our board of directors prior to attempting a takeover. Holders of a single series of our common stock may not have any remedies if an action by our directors or officers has an adverse effect on only that series of our common stock. Our Series B common stock trades on the OTC Bulletin Board, which is often characterized by volatility and illiquidity. We may have substantial indemnification obligations under certain inter-company agreements we entered into in connection with the spin-off. If we are unable to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or our internal control over financial reporting is not effective, the reliability of our financial statements may be questioned and our stock price may suffer.

Full 10-K form ▸

1437106--3/12/2010--Ascent_Media_CORP