SKT Sky Network Television Limited.

[steveb]

just a bit off topic but NZME have lost the radio broadcast rights as well.One has to ask if NZ cricket know what they are doing!

[mistaTea]

just a bit off topic but NZME have lost the radio broadcast rights as well.One has to ask if NZ cricket know what they are doing!

Well, they went for the bigger payday. Their long-term relationship with Sky or what is ultimately best for the cricket fan's back pockets didn't come into the equation really.

Spark Sport needed a top tier sport like Cricket and were prepared to pay a lot more money than Sky to gain the rights.

NZ Cricket's line that 'streaming is the future' is the reason they went with Spark is nonsense. Sky have a great streaming platform too - so they can distribute NZ Cricket's content via a modern streaming platform or satellite...whatever the consumer prefers based on their own personal circumstance.

If Spark Sport was the only streaming platform in NZ then fine, I could understand that argument. But it is not the case.

I would have had more respect for them if they were just honest to the fans and said "Yeah, you will have to pay more and watch all of the cricket over two different platforms...but we got a very big cheque doing it this way, and ultimately that is what mattered. Earnings maximisation."

Nothing at all wrong with maximising your earnings - but just be honest about it and accept the negatives (in terms of fan reaction) with the positives (more money).

[Jay]

When will it dawn on some people that subscribing to all these platforms is/will be costing an arm and leg - I "only" have sky - by satelittle- basic + sport and use Spark for the FI and WRC and maybe the local cricket this year now.
As mentioned above need a legal content provider, hang on there is was/one called Sky
If sky want to save a bit of money, why do they need 27 "commentators" at the Super rubgy/test games - 3 main commentatotrs, then another 1 or two do interviews then another 2-3 give half time/full time analysis and so it goes....
have they never heard of multi-tasking

[blackcap]

When will it dawn on some people that subscribing to all these platforms is/will be costing an arm and leg - I "only" have sky - by satelittle- basic + sport and use Spark for the FI and WRC and maybe the local cricket this year now.
As mentioned above need a legal content provider, hang on there is was/one called Sky
If sky want to save a bit of money, why do they need 27 "commentators" at the Super rubgy/test games - 3 main commentatotrs, then another 1 or two do interviews then another 2-3 give half time/full time analysis and so it goes....
have they never heard of multi-tasking

The same could be said for Radio Sport with their cutting the cricket commentary. I remember back 30 years ago when Bryan Waddle would commentate solo the whole day. There were a few ad breaks (time for him to have a drink etc) from time to time, but heck it would have been a whole lot cheaper than the plethora of comms with them switching around every 20 minutes like they are doing currently.

[Dlownz]

You have to wonder if sky could be a takeover target. Just for the sports rights alone. But when the rugby rights do come up for renewel in years to come are they even going to be offer the same sum as last time. I don't see any major rise in share price till August when there next results due. But also would anyone want to try to take over such product this year with everything being so unstable

[mistaTea]

You have to wonder if sky could be a takeover target. Just for the sports rights alone. But when the rugby rights do come up for renewel in years to come are they even going to be offer the same sum as last time. I don't see any major rise in share price till August when there next results due. But also would anyone want to try to take over such product this year with everything being so unstable

I am surprised that there have not been any takeover offers. DAZN, for example, could buy Sky right now and immediately have close to 1 million customers. They have ambitions to go far beyond boxing, and RugbyPass would come with the deal. If they didn't want to keep the entertainment arm they could split that off and focus on sports.

It would make more sense in my mind for DAZN to buy Sky since it's SP is in the toilet rather than compete for rights against both Sky and Spark (and therefore pay premium pricing)

Then there is CVC partners who also want to make a big move into sport.

It could be that there have been expressions of interest - but no offers made, and the indicitive prices given may be so low that the board have already said no.

Market cap closed yesterday at $222.4M. Any thoughts on how much an offer would need to be to take the company private?

Given the value of the rights held alone, I think a serious buyer would have to offer 3 to 4 times the current SP to realistically succeed.

[Sideshow Bob]

I am surprised that there have not been any takeover offers. DAZN, for example, could buy Sky right now and immediately have close to 1 million customers. They have ambitions to go far beyond boxing, and RugbyPass would come with the deal. If they didn't want to keep the entertainment arm they could split that off and focus on sports.

It would make more sense in my mind for DAZN to buy Sky since it's SP is in the toilet rather than compete for rights against both Sky and Spark (and therefore pay premium pricing)

Then there is CVC partners who also want to make a big move into sport.

It could be that there have been expressions of interest - but no offers made, and the indicitive prices given may be so low that the board have already said no.

Market cap closed yesterday at $222.4M. Any thoughts on how much an offer would need to be to take the company private?

Given the value of the rights held alone, I think a serious buyer would have to offer 3 to 4 times the current SP to realistically succeed.

Could make an on-market takeover? Most of the major shareholders are custodial services and nominees - accounts for more than 50% of the shares and at least 7 of the top 20 shareholders.

Not sure what this would mean for a potential takeover, would think it would mean any party couldn't get a large block of shares easily?

[mistaTea]

Could make an on-market takeover? Most of the major shareholders are custodial services and nominees - accounts for more than 50% of the shares and at least 7 of the top 20 shareholders.

Not sure what this would mean for a potential takeover, would think it would mean any party couldn't get a large block of shares easily?

Not sure about on market buying. Possible - but trading volumes are low so it would be a slow process. Once 5% was achieved they would have to declare, and that would cause the SP to explode as speculation of a takeover offer spread.

Will have to wait and see if anything happens - but it would be a relatively cheap entry into top tier sport for a company like DANZ. Let's say, for arguments sake, they offered US$500M (which would equate to about NZ$1.82 per share). Chump change for these guys - but they would get close to 1 million subs right away, RugbyPass and a huge inventory of content. The content rights that have been secured over the next 5 years alone would be worth over NZ$1B. Over hald of that would be sport.

And, of course, they would be taking out a major competitor to sports rights - making it easier to win content at a reasonable price in the future.

If they are going to compete against both Sky and Spark, they would end up spending more than US$500M anyway over the next 5 years or so. Would seem like a much harder and more expensive path to me!

[Entrep]

Buying or holding a share in hopes of a takeover never ends well IMO

[mistaTea]

Buying or holding a share in hopes of a takeover never ends well IMO

Agreed - and I am not actually 'hoping' for anything in terms of a takeover.

I am just pointing out that it is a bit of a surprise that nobody has launched a takeover offer for Sky (given the record low SP) and for companies like DAZN who are looking to enter the market...it would seem like the path of least resistence. But I could be wrong.

Nobody should be buying Sky (or any other company) based on a prayer that someone else will come along later with a juicy takeover offer. You only buy if you think the business has merits as an investment.