Down 5% on open as expected.
How do business leaders continually get sucked into to purchasing dying assets by the bloody bankers!!!
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Down 5% on open as expected.
How do business leaders continually get sucked into to purchasing dying assets by the bloody bankers!!!
I fail to see how this deal materially addresses the fundamental problem (in my view) of the satellite subscriber losses. The opportunity for bundling etc here seems limited.
Here we go again. 7% off SP at a stroke. Way to go SKY.
WHen we vote on this debarcle can we also call a vote of no confidence in our non resident chairman?
https://www.stuff.co.nz/business/128...ire-mediaworks
lolQuote:
Some Sky investors on share market forum Sharetrader reacted with indifference and others with hostility to the announcement.
“Are they looking at Video-Ezy too?,” one quipped.
If they end up blowing the entire cash balance ($150M+) on this deal it would be devastating. Even if they could buy all the assets for $50M and assume the $100M debt, it would be a very expensive deal.
The market has voted very swiftly too - Sophie should kill this deal asap. Though we haven't seen the terms yet...and knowing the terms would give us a better idea of what they are looking to do...it is hard to imaging Sky shareholders coming out the other side of this better off than the sellers.
I maintain that Sky TV's future is as a telco - not owining a radio station and some billboards.
Philip 'the Pooman' Bowman absolutely needs to resign, and so does old school Keith and Joan who no doubt think this transaction is a brilliant idea.
But we also have to question Sophie's capital allocation skills. She was good at cutting costs (with the help of the Foxtel guy)...but let's not forget that Sophie was the one who brought the RugbyPass deal to Martin and sold him on it...
Now this...hmmn.
Kill the deal, and do what the market showed support for - sell the business.
In more positive news, the new SP trajectory puts them back as an attractive takeover target. FFS Sky, give it up, noone believes in your ability
Add to the cost the $33m wiped off the market cap in the last half hour.
Shows what the market thinks of it.....:t_down:
This is also a major distraction from the non-delivery of the STB. Sure, there has been chip shortages, but if they cant even deliver on their core business strategy how the flip will the deliver on unfamiliar business units?
Low volumes traded currently. I'm still of the opinion thar if Sky can purchase the company for peanuts, this could be a worthwhile venture. Will be interesting to see if Sky moves forward with his and the terms if Sky moves forward with this.