SKT Sky Network Television Limited.

[carrom74]

https://www.nzx.com/announcements/342538

Key takeaway--- NZR to be given 5% stake...

[trader_jackson]

https://www.nzx.com/announcements/342538

Key takeaway--- NZR to be given 5% stake...

Don't have the cash, so give them equity.
(basically do anything you can to secure rights before Sparks, with a much bigger back pocket, nabs it)

[tga_trader]

5% share is bugger all, especially given the trajectory of the share price and no dividend, so must've still been a huge amount of cash.

[mistaTea]

I think you guys miss the point.

By NZR becoming a large shareholder of Sky, it is a strong indication of an ongoing partnership.

Makes it harder for Spark or Amazon to get the rights in the future when NZR is already an owner of a sports broadcasters.

As much as I don’t particularly like issuing undervalued shares, this is actually quite a smart move imo.

[jonu]

Will they be in trading halt until after the meeting?

[LAC]

Great partnership for Sky....def the way forward in the sports lights battle. Regardless of what others think, the new CEO is using the right thinking for a business such as Sky which is facing headwinds. This is a great outcome.

[steveb]

It's a lifeline for Sky,not so sure its a good deal for NZ rugby if Sky go belly up

[jonu]

Will they be in trading halt until after the meeting?

Obviously not. I would have thought a halt was appropriate until the deal was confirmed.

[mistaTea]

It's a lifeline for Sky,not so sure its a good deal for NZ rugby if Sky go belly up

Sky TV still have underlying earnings north of $100M.

Free cash flow alone last year was $108M.

The company has faced some stiff headwinds for sure, and this Rugby Deal is huge for the company.

But Sky are nowhere near 'going belly up'.

[Stranger_Danger]

Sky TV still have underlying earnings north of $100M.

Free cash flow alone last year was $108M.

The company has faced some stiff headwinds for sure, and this Rugby Deal is huge for the company.

But Sky are nowhere near 'going belly up'.

Do those figures take into account how much they're going to be paying for rugby going forward, or the possible loss of cricket fans?

I agree Sky TV looks cheap fundamentally based on historical earnings, but those earnings are just that - history.