Surely not "an organised litany of lies" would ask Justice Mahon?
Printable View
Aussie Grand Prix should be awesome viewing
We are only 10 weeks away (give our take) from finding out what the plan is for capital management. Not long to go.
If the SP does keep heading up then the argument for a tax free distribution instead of an on-market buyback will be even stronger.
Management might prefer a buyback regardless of what the SP is because it will lift earnings per share (and make them look better).
A few months ago a $30M buyback could have theoretically purchased 10% of company shares. I would have been strongly in favour.
Now they would be lucky to buy back 5%...so not such an amaing prospect anymore in my view.
https://www.reuters.com/business/med...am-2022-04-07/
We already have an exclusive (and expanded) Warner deal with a “co-exclusive” Discovery deal.
The HBO deal was negotiated during the Warner-Discovery merger process (which is important I think because I don’t think they would have been keen to lock in an exclusive deal with SNT if the plan is to imminently go OTT with a beefed up Discovery service).
Ultimately I think Discovery maximise their revenue by maintaining a deal with Sky that allows Sky to do well while also being able to provide more premium content on their own service so that they can maximise advertising revenue.
Same goes for Disney. I would be surprised if they pulled their ESPN content from Sky like they did with their Disney content. I think at a minimum we will see an expanded wholesale arrangement for Disney+ too (which is probably better than a “co-exclusive” deal ask Sky would only have to pay per subscriber and Disney+ can integrate well with the rest of Sky’s content when the new STB is launched).
https://www.nzherald.co.nz/sport/nzm...2BV3X5HRO7WX4/
Just picking up on Adam's comments (I think this must have been added after I saw the original article):
Adam Crothers, Sky's Head of Sport Partnerships, says: "There's no doubt rugby is a cornerstone sport for our customers, and while Sky offers multiple ways to enjoy every try, ruck and lineout, we're really pleased to add NZME to the mix to extend the reach of New Zealand's game. This agreement is an important part of our distribution strategy, which enables more New Zealanders to access the content they want."
NZME an important part of our distribution strategy.
Excellent...
I'm still of the opinion that Sky will buy into NZR. If this occurs, I think it would be a very positive point for Sky. Maybe an investment of NZD100m by Sky into NZR.
Basing that on this article?
https://www.stuff.co.nz/sport/rugby/...-lake-approved
"Silver Lake will invest $200 million in a new commercial entity that will house all revenue-generating assets of NZR, with additional co-investment of up to $100 million to be offered to New Zealand-based institutional investors later in 2022."
Yes :). Also based on the long standing relationship between the two entities and the idea that Sky has just enough money for around a $100m investment plus dividend. Lines up quite well..
Fair enough. For me I think what is exciting is that Sky have so many options - and the Balance Sheet to take advantage of these opportunities. A number of possibilities are there for Sky including:
- A deal with NZR
- A deal with NZME
- A deal with a telco
- A deal with Foxtel
- Private Equity
The June Investor Day will be very interesting. As I have mentioned dozens of times in previous posts, we only want a capital return IF there are no better investment opportunities for Sky to exploit.
Will they have something bold to announce by June? Or will they not have any 'game changing' deals in mind and just keep some cash to speed up work on the new STB so that cash can be returned to shareholders?
I prefer that they can use all of the cash for a material investment.