One of my favourite small cap companies, Beyond International (ASX: BYI) has announced a joint venture with Seven Network, owned by Seven West Media (ASX: SWM). Beyond Productions will join forces with Seven to create new programs for the North American market.The JV will be called 7Beyond and is based in Los Angeles.

Beyond International (ASX: BYI) have reported results that were slightly worse than my expectations. The core businesses remain strong, but the digital acquisition has floundered. I sold my shares in Beyond at $1.50, although they last traded at $1.66. I believe the company has no margin of safety, and is potentially overvalued at the current price. The company has no debt and has cash of over $10 million. This article may seem negative to some... but really, it's because I'm holding Beyond up against high standards. This is a well run company.

Beyond International has a long history of profitably producing niche television shows and effectively managing the copyright of those shows. The company also buys the rights to programs it doesn’t produce, and sells them into new markets. These activities account for most of Beyond’s profits, and I believe that this is where the company has a competitive advantage: a rare mix of knowledge, experience, networks and intellectual property. However, the company has four revenue streams.