It was almost easy to miss, but a transaction occurred yesterday that starts a new chapter in one of the more interesting and entertaining technology firms in securities lending history. John Tabacco’s Matador and LendEQ, both at one time in the LocateStock.com line-up, have been sold to an OTC Bulletin Board company called Investview. John is a colorful guy and has appeared on multiple television and media programs, and has also had famous shouting matching and loud dinners at otherwise tame industry conferences. Since founding Locatestock and its affiliate companies, he has been both a friend and a challenge to the securities lending industry.
According to the press release, “Investview, Inc. (OTCBB: INVU) (“Investview”) – Dr. Joseph J. Louro, Chairman and Chief Executive Officer, announced a definitive agreement to acquire Instilend, Inc. “Instilend”. Instilend provides electronic securities lending tools via fully automated on-line technology to the institutional, high frequency and retail trading communities. Through utilization of the Instilend platforms, Matador and LendEQs, firms are now able to provide compliance and operational efficiency, while simultaneously creating new revenue streams. Instilend has positioned itself as a differentiating market leader in the securities lending space.”
It took a while to track down Instilend, which we had never heard of, but it was soon clear that this was a Tabacco holding company. Brother Derek is listed as a partner (check out his classic LinkedIn photo here.) The Matador and LendEQ logos were on both the Locatestock.com and the Instilend websites, so we’re pretty sure that this is the same organization.
And what of Investview? This appears to be a newer company set up by a doctor from New Jersey who has hired some experienced fellows to run a start-up/roll-up. Executives include David Kelley, formerly COO of TD Ameritrade Holdings and a 20 year veteran of Merrill Lynch, and Randy MacDonald, previously global head of retail at MF Global. Both joined in the last several months. According to its website, “Investview, Inc. (OTCBB: INVU) engages in the marketing and sale of online investor education products. Our flagship product is InvestView, an all-inclusive on-line education, analysis and application platform. InvestView is equipped with in-house, qualified professionals who have collectively taught over a quarter of a million students in the past decade on how to trade in the stock market.”
We’re interested to see what the next chapter of Locatestock/Matador’s evolution will be under the Investview brand. We’ve met many of the players here over time and know them to be characters, yes, but also smart business people. In spite of industry sneers, Locatestock was an active business serving the day trader and smaller retail market that couldn’t get access to hard to borrows. Will John Tabacco stay involved? Will he have shares in the new OTCBB company? Stay tuned.
For more on the industry activities of John Tabacco, check out this interview from September 27, 2011 with Securities Lending Times. John has also started a media company, had his own talk show, produced boxing specials, ran a sports fan website and run for a New York City Council seat from Staten Island. John and Derek were on the forefront of the Anti-Occupy Wall Street movement, with mixed reviews.