Originally Posted by
mistaTea
Speculates on the likely future of Sky TV and in particular the likelihood of a deal with 2D once they have sorted out their merger and are ready to buy something else to gain more scale and something to differentiate their offering.
Also talks about the increased likelihood of someone else potentially coming in to get Sky at a relatively cheap price given the low SP (the vultures the headline refers to):
"As one source points out, private equity can pay a premium of 30% - 50% to take a business private; for Sky that would be $600-$700m, but because of around $140m in cash and no debt situation an interested party would effectively be paying only $460 - $560m, or 63c to 77c for every dollar of revenue Sky creates (based on the low end guidance range of $725m for the 2022 full year).
For a profitable company that has over a million customers and free cash flow in the order of $60m a year, he says it’s a good deal - one that would make sense for the new Vocus/Two Degrees merged entity, as soon as that $1.7b deal is done and dusted. But in the meantime, also an irresistible bargain for vultures, especially those for whom the future is not a driving factor."