Would rather they bought the town cryers......
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who would want to buy shares in this broadcasting wave crashing ride into the rocks...
its just not a wave you would want to risk riding...
growth stock? Div stock? no no no...
I'm going to speculate that if Sky purchases the entity, it will be for 50m-ish and the terms will include taking on the debt. I'm unsure when Mediawork's debt will mature, but I think Sky will have a option to elect to pay debt later and pay a dividend in the near term.
If it plays out that Sky can bolster its revenue by 200m (or even a discounted figure) and generate a profit, we would be looking at a Sky that generates 900m in revenue a year. Couple that with a long maturity on the current debt, we could have a 900m revenue company (that provides a full suite of media services except online news) that pays a dividend this September 2022 still...
There's alot of negatively surrounding the deal, but if the terms are favorable and we can buy the company for peanuts, it could be worth while.
Paying $150m (including debt) is not peanuts. And this is a company making a loss and is cash flow negative. In the meantime SKY takes it's eye of the ball and may struggle to compete for content because it has emptied its war-chest. And shareholders will not see a dividend for years. Then, mark my words, there will be another cap raise that will dilute shares and tank the SP. And we'll be back where we started from and all the good work since Sophie took over will have been undone. Yeah, you could say I'm negative.
What happened to KKR ?
Just as they have got themselves off the rocks and with some cash in the bank they decide to go off and start buying before they even have the current strategy cemented into place.
it nuts... madness...
they need to have a plan to defend themselves buying old tech isnt it...in fact they have a limited future.
just look at the interim consolidated cash statement.
the cash champagne moment has gone to their sensory organs.
TV's are a technology heading into its sunset time line..
its the next decade they need to be worried about the 2030's.
Another angle is that this will be a career defining moment for Sophie and her team. If this doesn't turn out well (assuming a purchase is made), imagine the grief they would get when looking for new roles.