SKT Sky Network Television Limited.

[Ogg]

https://www.stuff.co.nz/sport/league...-with-vodafone

I also find the timing of this very strange. It could be nothing and most probably is...or it could be the start of the great media-telco consolidation in Australasia. Needs to happen sooner than later if they want to survive.

Vodafone brand is dead anyway. See my previous posts about this.

[Getty]

I’m pretty sure there are a lot of behind the scenes deals like that going on.

I reckon that if Sky’s going to get taken over it’s more likely going to be from a Comcast or similar player that can bring some scale, content, adtech and US$ that might benefit from Sky NZ’s rugby deals and the next to nothing US$ price.

Whatever the case, the SP will get a nice boost.

I'm not saying you're wrong, but why would Comcast want to spend even @$239M Sky Mcap @13.7c, to get their content here.
They would be better to do a mutual on sell rights deal with Sky, that both parties could benefit from, without handing capex over upfront.

[tqtq]

I'm not saying you're wrong, but why would Comcast want to spend even @$239M Sky Mcap @13.7c, to get their content here.
They would be better to do a mutual on sell rights deal with Sky, that both parties could benefit from, without handing capex over upfront.

Comcast would effectively be getting Sky NZ for free when added to their business given Comcast’s P/E. They need more original content which sky may be able to generate if it heads in that direction. And they are in a better position to increase profit then sky is on its own.

[Ogg]

I'm not saying you're wrong, but why would Comcast want to spend even @$239M Sky Mcap @13.7c, to get their content here.
They would be better to do a mutual on sell rights deal with Sky, that both parties could benefit from, without handing capex over upfront.

Cause they own Sky UK.

Sky NZ could be run from overseas and absorbed into their existing operations, thus saving on capex.

Sky NZ is only valued today at USD $150m.

Why rent when you can buy?

[tqtq]

Further to my post above, you might ask... "why doesn't Discovery just buy Sky instead of Mediaworks"?

The answer: Sky is worth more to Infratil/Brooksfield because of their existing relationship with Sky and also because Sky is entering the broadband market. THerefore Infratil/Brooksfield will always likely outbid Discovery for Sky. Rather than Infratil/Brooksfield and Discovery fighting over Sky, and pushing up the price, Discovery gets Mediaworks from Infratil/Brooksfield for a discounted price, as part of Discovery agreeing to stay out of Sky.

That makes sense to me.

[tqtq]

Further to my post above, you might ask... "why doesn't Discovery just buy Sky instead of Mediaworks"?

The answer: Sky is worth more to Infratil/Brooksfield because of their existing relationship with Sky and also because Sky is entering the broadband market. THerefore Infratil/Brooksfield will always likely outbid Discovery for Sky. Rather than Infratil/Brooksfield and Discovery fighting over Sky, and pushing up the price, Discovery gets Mediaworks from Infratil/Brooksfield for a discounted price, as part of Discovery agreeing to stay out of Sky.

Vodafone would also be wise to secure content to be ensure their dominance in the 5g era. Sport and entertainment is what people want to watch. Buying sky is the easiest place to get it.

[tqtq]

Wow. Forsythe Barr actually had something positive to say about Sky.

https://www.goodreturns.co.nz/articl...rs-on-nzx.html

“However, our analysts expect the risk to near term forecast earnings is net positive, with a positive bias signalled for ABA, AIA (slightly positive), AIR (slightly positive), FBU, FSF, NZX, SKL, SKT, SUM and THL (slightly positive).

[Ogg]

Vodafone would also be wise to secure content to be ensure their dominance in the 5g era. Sport and entertainment is what people want to watch. Buying sky is the easiest place to get it.

The future for New Zealand telecommunication companies, ie Spark and Vodafone, is to follow the recent trend of American telecommunication companies and be more vertically and horizontally integrated and to also generate more exclusive content.

They don't just want to sell you access to data. They want to create and then sell the data, as there is a greater margin when doing this.

[tqtq]

The future for New Zealand telecommunication companies, ie Spark and Vodafone, is to follow the recent trend of American telecommunication companies and be more vertically and horizontally integrated and to also generate more exclusive content.

They don't just want to sell you access to data. They want to create and then sell the data, as there is a greater margin when doing this.

The acquisition of Sky would help them create a nice little data heavy / dependent ecosystem.

[tqtq]

Interesting article (relevant to Sky) on how Foxtel has repositioned its business:
https://www.channelnews.com.au/foxte...ivers-content/