I don't understand though. Sophie has never acted as CEO before. How are people so confident in her?
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I don't understand though. Sophie has never acted as CEO before. How are people so confident in her?
Mista's face after losing half his money in Sky....
https://media4.giphy.com/media/kc0kq...PkwB/giphy.gif
Although it would have been nice to have Martin stay on, the continuity of an existing Exec that has already brought in to the latest strategy taking the CEO role is good for investors. Nothing more disruptive than a new to company CEO wanting to come and put their "stamp" on things with a strategy shake up.
This is my new theory.
Glen KYNE, director of Discovery NZ Ltd, is also a director of Bravo TV Ltd, which is a JV between Discovery and ComCast.
I'm thinking a JV takeover of Sky TV by Discovery and ComCast.
ComCast would provided entertainment (and Neon after spinning it off), Discovery would provided news through mediaworks and documentary content.
50/50 ownership model. Sky platform would be used to promote DiscoveryPlus and PeacockTV.
USD $200m from each would be petty cash ~32c per share.
Put Sophie in charge of the whole thing. $3m salary plus bonus.
Thoughts?
Morningstar holding their valuation of Sky at 30c.
Event analysis
Signal Disruptions Spread to Sky Management
The sudden resignation of Sky Network Television's CEO Martin Stewart is disconcerting for two reasons. First, an abrupt leadership change negatively impacts investor and employee sentiment in any organisation. But it is particularly unsettling for one undergoing a fundamental transformation amidst unrelenting structural headwinds. Given these challenges at the operating level, the last thing Sky investors need are similar disruptions at the management level. Second, the CEO resignation comes less than three months after the previous CFO Blair Woodbury vacated his position to become a "strategic advisor to the Chief Executive." It means the two key architects of Sky's current strategic plan to become a multiplatform subscription service provider are gone, further unnerving investor sentiment.
Fortunately, the new CEO Sophie Moloney presents some leadership continuity. She has served as Chief Legal, People and Partnerships Officer since joining Sky in 2018, and boasts experience in overseas pay TV markets since 2003. Most recently as the Chief Commercial Officer, Moloney also would have been instrumental in charting the course for Sky's transformation journey. As such, there are unlikely to be any major changes to the group's current strategy to accelerate investment in streaming services and marquee content, while rationalising its non-content-related costs.
We maintain our earnings forecasts and our NZD 0.30 per share fair value estimate for Sky (AUD 0.28 at current exchange rate). Shares in the no-moat-rated group remain at a significant discount to our intrinsic assessment, the realisation of which is now up to the execution capability of the new CEO and the team she assembles (including the new CFO). And the first test will be how she manages to cushion the potential earnings snapback from the current COVID-19-induced hiatus in "cord-cutting" and lower sports rights costs—dynamics that recently led to the rare profit guidance upgrade for fiscal 2021.