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Article Excerpt
Byline: Editorial Staff

Double-Secret Probation The Securities and Exchange Commission charged National Lampoon chief executive Daniel Laikin, as well as three other individuals, with providing kickbacks for stock purchases. The scheme sought to artificially inflate National Lampoon's stock price, an effort, the complaint says, that was designed to improve the company's ability to seal strategic partnerships and acquisitions.

National Lampoon is best known for such blockbusters as Animal House and Vacation, though the company has diversified in recent years to add cable programming and websites to its portfolio. Last year, Laikin told Mergers & Acquisitions ("The New Lampoon," May 2008) that his ultimate goal was to "sell [the business] as a fully integrated comedy/college lifestyle media company." He identified TimeWarner or Viacom as possible suitors.

In the SEC's complaint, however, Laikin was quoted as telling an informant that he needed to inflate the stock price to further drive his growth plan. The complaint says: "Laikin specifically discussed his need to have the stock trading at higher levels, stating that 'there are some small acquisitions that I want to make and I can make those with stock.'"

Laikin also allegedly told the informant that he had turned down acquisition offers from "every major media company" because he didn't think the stock price - at the time trading at roughly $2 per share - represented a "fair public valuation."

Another concern for Laikin, according to the complaint, was that National Lampoon's stock price...

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