They have doubled in value since start of pandemic - now at all time high of $300 Billion market cap - and added a net 4.4 million new subscribers last quarter alone, while implementing price increases.
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A Foxtel merger would be the ultimate triumph (if done on reasonable terms).
We would be in such a strong position for future content rights negotiations.
Spark Sport would fold over night.
The business would generate massive FCF, giving it plenty of firepower to invest and pay shareholders.
I am 100% sold on the idea. But I think it will be a timing thing.
I do not see them doing a complicated deal where SNT does a reverse takeover, and some of the shares are offered to new instos that inject money into the business to pay debt.
It will be the simple route.
Foxtel IPO and get as much $$$ as they can. Telstra and Newscorp will sell down as part of this but keep a meaningful stake.
Then if the Foxtel-SNT merger still makes sense: execute. Hopefully Sky has a market cap of $500M+ by then depending on what Bowman does.
far out that could easily have been the sky presentation!! um, lets just merge and we can have 1 ceo and marketing team to do the investor presentations. would save a few mill.