Possible.
But, in the end, I think it is generally better when The Board eat their own cooking.
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Seems consensus on here is that finding somebody to put us all out of our misery is the best possible outcome ….and we want it to happen sooner than later
Is Sky really that bad?
Some would like to be put out of their misery by a takeover...and would settle for any number above their average purchase price (even if that represents a low value relative to EBITDA, FCF...however you like to define value).
Others I think are looking for what The Board are going to do to change the sentiment towards the business. So far, every move they have made (most needed and overdue imo) have met with declines in quoted value. And that seems to be because the market does not rate businesses that simply rent content for distribution anymore (regardless of how healthy the cashflows are). Sky is continually priced as though it will be bankrupt in 5 years time.
So we are eagerly awaiting some kind of 'catalyst' (not necessarily a takeover) to change Sky into a business that is seen as being more valuable. My vote is to become a telco (rationale given ad nauseum in previous posts).
If The Board don't like the idea of becoming a telco (because they view telcos as low margin, perhaps) then I am keen to understand what they are going to do with FCF. Is there something else we can buy?
If not, then what? Buyback? Divvy? That would give somewhat of a bump to SP...but does it ultimately serve long term owners if it means the underlying business does not change to ensure its longevity?
Not everyone wants a saviour to come and put a bullet in this 'dOgg'...
I’d say the good guys at Jardens haven’t got much to work on at the moment …..and that’s assuming there actually some offers in the first place.
Been engaged to keep up to date with how SKY are going so they ready to ‘act’ if something comes up.
Hilarious. Why would a suitor wait 3 weeks again? There is something magical about making a bid on the same day as the financials are released?
The sooner you accept that no deal is happening the easier it will be for you to make a decision as to what to do with your shares.
You really did buy them for the wrong reasons I think.
Is this slightly interesting ?
Quote:
Discovery, Inc. today announced that Rebecca Kent will transition from her role as joint General Manager of Australia and New Zealand to the newly created position of Senior Vice President, Transformation. Glen Kyne, who was appointed joint-lead for Australia and New Zealand alongside Kent following last year’s acquisition of MediaWorks TV, will solely lead the trans-Tasman business going forward as Senior Vice President, General Manager, Australia and New Zealand.
Quote:
Kyne, who has extensive experience across the ANZ media and telco industries, has successfully co-led the integration and strategy of Discovery’s New Zealand operations since December 2020 and will oversee the ANZ business in its entirety as it leverages opportunities for growth.
3 weeks until FY profit announcement.
Think they need to reintroduce dividend to prop up the share price.
Yes they could do that.
But I don’t think they will. At the ID they gave no indication that they were considering returning excess cash to shareholders.
And to pay dividends now would mean that they don’t really believe in the growth story they gave.
They need to use FCF + leverage their clean balance sheet to buy something.
Only thing required here is patience.
Wonder how that property sale is going...
Why do you think they care about the share price ? They need to run a successful business, get some decent results published, maybe return to paying a dividend and let the share price take care of itself. Turners needed to do exactly that and have. Look at the share price there. Thats what I am counting on.
I think it was Mark Twain who pointed out that the market can stay irrational longer than you can remain solvent.
It certainly feels that way with Sky TV sometimes!
At the previous AR, Sky had ~$120M cash. Subtract the $100M bonds and they were net cash $20M.
As of June 30 Sky was set to have produced FCF of ~$80M.
So the business probably has ~$100M of cash in the bank, and zero debt.
Quoted value is currently around $280M. If you subtract the cash position, the market is effectively saying that Sky’s operations are only worth $180M.
That is how severe the negative sentiment persists against Sky. It has not had any bearing to economic reality for a couple of years at least now.
So I am interested in the next AGM whereby management need to tell us how they are going to use the large cash position to transform the business in a way that will increase intrinsic value in an enduring way (in which case one would expect the market to reconsider its stance and lift quoted value).
who else wonders if derek is still hodling?