SKT Sky Network Television Limited.

[mistaTea]

This Mediaworks thing is all mistertea’s doing ……Blair showed me that diagram and it definitely mentioned Mediaworks

From late 2020

No my diagram said TELCO TELCO TELCO circled with a heart.

[bottomfeeder]

They will hammer away at the “cross promotional” benefits/synergies no doubt.

Once we merge we will be the one-stop shop and preferred advertiser etc as we can offer attractive TV, radio and billboard packages to maximise your reach.

And, to be fair - that would be true.

However what is the upside to that realistically?

If combined advertising revenue is $280Mish…a solid 10% increase only pushes revenue up by $28M.

But why should we pay to MW shareholders for the synergies we are able to achieve. Still think MW should only be worth bottom dollar.

[Joshuatree]

[QUOTE=Rustycage;961189

I haven’t seen a single person on here or hotcopper say “hey, this kinda sounds ok/good”[/QUOTE]


Need new glasses?
This looks like a TalkBack show with wannabe CEO's saying I could do that better..

[LoungeLizzard]

Need new glasses?
This looks like a TalkBack show with wannabe CEO's saying I could do that better..

Enlighten us with the names of gurus who think this a good idea?

[Rustycage]

Need new glasses?
This looks like a TalkBack show with wannabe CEO's saying I could do that better..

I legit think we could (lol). Here's a script I prepared earlier

---

RC meets with Oaktree
Oaktree: Hey RC, wanna buy MW?
RC: NicholasCagelaughing.gif no
Oaktree: But synergies/empire building etc
RC: GTFO here n00b, I've got a polo lesson/yacht party/gala dinner to get to

Later: RC meets with Board
RC: Hey board, now that we've crashed the share price, let's do a massive buyback/reinstate the dividend. This should facilitate an increase in our share price, create value for shareholders and start to save our reputations. At that point, our shares would be a far better currency to look at acquis/merger with a telco/NZME/strategic asset. If we work on saving our reputation now, even if this all goes to s*** and we get taken over by PE, when they figure out that we are fairly hopeless and we all get fired, our intact reps should allow us to get jobs on boards of the next NZ s***co
Board: Hooray for the SKT board! Bring out the Krug!

[jimdog31]

Enlighten us with the names of gurus who think this a good idea?

At the risk of appearing bi polar, i have been thinking more objectively this am about why Sophie would consider this to be a good idea.

We have to give her credit she has done a remarkable job in the core skt space this far after being handed a hospital pass.

Maybe her strategy is a little more future orientated than we think, especially around Renewal of the rugby in 2025.

Outdoor advertising is actually a growth sector in media, and was substantially increasing pre covid. This could be where some of the “40m” ebitda impact was felt.

over in Aus, i stumbled on a picture of who the bigger outdoor advertisers were, low and behold number 1 is Stan sport. This i believe has helped drive Stan sports growth. foxtel is also down the list at number 8 (jumping from 40) from the year before. So the outdoor space in aussie is a real big player for our “friends” at foxtel. This could be gold when rolling out STB boxes, and help with broadband.

What if the oms part of mediaworks has suffered from lack of invesment while PE has been trying to exit? could be some growth there.

https://www.oma.org.au/Industry-Performance

Now i come to Radio, the dog. This could actually be quite a lever to pull when it comes to securing sports rights, especially around event promotion, upcoming games, getting the stars on shows etc etc. Also radio could be gold when rolling out STB boxes, and help with broadband.

With outdoor and radio in the quiver, i think skt can pitch for sports rights (especially rugby) and it doesnt always have to be about the pure $$ they are paying. they have other angles they can sell why Sky should get the rights that frankly spark or others wont be able to provide (we can give you $XX m of advertising for free), they would have massive reach through kiwis eyes & ears.

Having said all the above, im not for the deal, im just trying to get inside Sophies headspace, as i do not believe she is silly.

[LoungeLizzard]

At the risk of appearing bi polar, i have been thinking more objectively this am about why Sophie would consider this to be a good idea.

We have to give her credit she has done a remarkable job in the core skt space this far after being handed a hospital pass.

Maybe her strategy is a little more future orientated than we think.

Outdoor advertising is actually a growth sector in media, and was substantially increasing pre covid. This could be where some of the “40m” ebitda impact was felt.

over in Aus, i stumbled on a picture of who the bigger outdoor advertisers were, low and behold number 1 is stan sport. This i believe has helped drive stan sports growth. foxtel is also down the list at nunber 8 (jumping from 40) from the year before. So the outdoor space in aussie is a real big player for our “friends” at foxtel. What if the oms part of mediaworks has suffered from lack of invesment while PE has been trying to exit? could be some growth there.

https://www.oma.org.au/Industry-Performance

Now i come to Radio, the dog. This could actually be quite a lever to pull when it comes to securing sports rights, especially around event promotion, upcoming games, getting the stars on shows etc etc.

With outdoor and radio in the quiver, i think skt can pitch for sports rights and it doesnt always have to be about the pure $$ they are paying. they have other angles they can sell why Sky should get the rights that frankly spark or others wont be able to provide.

Having said all the above, im not for the deal, im just trying to get inside Sophies headspace, as i do not believe she is silly.

I agree with you that Sophie has been admirably level headed and focussed on delivering on SKT strategy, which it makes it more "perplexing" (Forsyth Barr) that they would now go for a risky acquisition, before the strategy has even been fully executed.

As MistaTea has said, SKT would have to get MW for basically zero (acquiring $100m in debt) to even have a hope of this making sense financially. Even that is optimistic given the forecasts of a 30% decline in radio/billboard advertising in the next few years. And that this is an ailing, loss making company that PE are desperately trying to offload (padding the balance sheet with intangibles in the process).

Some commentators have estimated that SKY might be considering paying anything from $100-200m. That would put the SP into freefall and wipe out a third of SKT value. And the SKT Board's attention would be diverted from executing their successful strategy to trying to overhaul MW, in an effort to prove doubters wrong. And all that freecash would have gone and the company would be saddled with long term debt in a rising interest market.

I pray to any passing God that SKT are already rueing this move and will shortly announce that the due diligence is over and they won't be pursuing it any further.

[mistaTea]

I agree with you that Sophie has been admirably level headed and focussed on delivering on SKT strategy, which it makes it more "perplexing" (Forsyth Barr) that they would now go for a risky acquisition, before the strategy has even been fully executed.

As MistaTea has said, SKT would have to get MW for basically zero (acquiring $100m in debt) to even have a hope of this making sense financially. Even that is optimistic given the forecasts of a 30% decline in radio/billboard advertising in the next few years. And that this is an ailing, loss making company that PE are desperately trying to offload (padding the balance sheet with intangibles in the process).

Some commentators have estimated that SKY might be considering paying anything from $100-200m. That would put the SP into freefall and wipe out a third of SKT value. And the SKT Board's attention would be diverted from executing their successful strategy to trying to overhaul MW, in an effort to prove doubters wrong. And all that freecash would have gone and the company would be saddled with long term debt in a rising interest market.

I pray to any passing God that SKT are already rueing this move and will shortly announce that the due diligence is over and they won't be pursuing it any further.

What he said. Thumbs up.

[jimdog31]

What he said. Thumbs up.

im with both of you btw!!

Im just trying to make sense of what seems a nonsensical move.

Without some objective thinking, the proposal undermines Sophies credibility.

[mistaTea]

At the risk of appearing bi polar, i have been thinking more objectively this am about why Sophie would consider this to be a good idea.

We have to give her credit she has done a remarkable job in the core skt space this far after being handed a hospital pass.

Maybe her strategy is a little more future orientated than we think, especially around Renewal of the rugby in 2025.

Outdoor advertising is actually a growth sector in media, and was substantially increasing pre covid. This could be where some of the “40m” ebitda impact was felt.

over in Aus, i stumbled on a picture of who the bigger outdoor advertisers were, low and behold number 1 is Stan sport. This i believe has helped drive Stan sports growth. foxtel is also down the list at number 8 (jumping from 40) from the year before. So the outdoor space in aussie is a real big player for our “friends” at foxtel. This could be gold when rolling out STB boxes, and help with broadband.

What if the oms part of mediaworks has suffered from lack of invesment while PE has been trying to exit? could be some growth there.

https://www.oma.org.au/Industry-Performance

Now i come to Radio, the dog. This could actually be quite a lever to pull when it comes to securing sports rights, especially around event promotion, upcoming games, getting the stars on shows etc etc. Also radio could be gold when rolling out STB boxes, and help with broadband.

With outdoor and radio in the quiver, i think skt can pitch for sports rights (especially rugby) and it doesnt always have to be about the pure $$ they are paying. they have other angles they can sell why Sky should get the rights that frankly spark or others wont be able to provide (we can give you $XX m of advertising for free), they would have massive reach through kiwis eyes & ears.

Having said all the above, im not for the deal, im just trying to get inside Sophies headspace, as i do not believe she is silly.

I don't buy it being a great move strategically.

They overpaid for RP with a rationale that it would help keep the rugby rights. That turned out to be bollocks.

The idea that NZR/SL would turn down more cash from Spark Sport because we will give them some ads on The Rock is laughable to be brutally honest.