Yes thats what I meant, Sky is purchasing Vodafone but the biggest shareholder is Vodafone so Sky actually has no say when voting. Is it just me that finds that strange?
I'm just wondering what the $5.40 share price actually means.
Sky/Vodafone could have just as easily have announced that the new shares were valued at $100 each and that Sky was paying $400 billion for Vodafone.
The $5.40 seems like a made-up number intended to inflate the value of the offer. It's not like Sky or Vodafone (who's taking over who) is actually paying $5.40. It's just a paper transaction.
At yesterday's price of $4.47 it's really a takeover/merger valued at $3,060 million. Or at $5.40 it's $3,437 million. I guess the market will decide in due course.
Imagine being one of those institutional investors that were dumping sky in 10m lot parcels just a few weeks back. Was that the right call? I still don't understand what all this means
I don't think Sky got a good deal here. Vodafone has $2.2bill in assets and $1.9bill in liabilities and made a loss last year of $120mill. Also in Telecoms, capital investment is large and in blocks. 5G is on its way and 2degrees and Spark will be able to ramp up the pressure especially as both Sky and Vodafone are consistently rated as the worst when it comes to customer service. Looking forward to Spark really trying to do a deal with Netflix and even competing for the Rugby rights next round.
On the plus side I think Vodafone management is better than Sky and probably has a better handle going forward and there might be a chance in the future where vodafone might want to go to 100% ownership again.
Looking forward to seeing how this turns out but I if I was a sky shareholder I would be a little pissed.
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Originally Posted by LAC
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