There is always a easy out in a due diligence clause. I have a copy paste I use for everything, which is inserted for my benefit.
I agree though, let's see the terms before we riot.
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There is always a easy out in a due diligence clause. I have a copy paste I use for everything, which is inserted for my benefit.
I agree though, let's see the terms before we riot.
FWIW here is some history. This is not the first time MW has been offered to SKT - a previous discussion included TV. However, the owners at the time were laughed out of the room at the ridiculous price expectation.
TV makes more much sense from a synergy perspective than Radio, but that is no longer an option, plus traditional free to air TV is dying anyway due to streaming. A synergy I can see is cross-promotion between the platforms - i.e. promote Sky on Radio and Billboards, and promote Radio and Billboards on Sky in order to grow (or stop losing) topline revenues. It's probably only good for big Sky events/promotions AND if there are unsold slots, not vice versa. I am however sceptical of such a grand strategy, assuming that is one of the major synergies being touted.
Online will be minimal revenues and Radio ratings are over-stated IMO. Operating synergies will be minimal, but there might be the odd savings in sales costs. Keep in mind the average sale value in Radio is relatively low and the commissions are relatively high (think hunter-gatherer reps). Radio have also thrown a lot of money at recruiting talent lately - this will need to translate into "ratings" and topline revenues, and soon.
I also want to forewarn any FA's looking at this to not get sucked into the EBITDA trap. I believe the radio licences expire in 2031 and re-purchasing those can be a VERY expensive exercise if the competition want to bid up the spectrum prices. Intangible costs are real cash outflows at some point.
Lastly, it is hard to know the recent sugar rush for MW given this Government's unbridled enthusiasm for throwing taxpayer money at media outlets - can the last reported revenues be sustained? Although I see profits from Radio have disappeared - they used to be good. All I can see now is debt holders wanting to eliminate their exposure, and PE wanting to rid themselves of a millstone. Bad shareholders appoint bad Boards, and bad Boards appoint bad CEOs, and so on...has nothing changed?
Business Desk - Sky and MediaWorks: why it makes sense, why it doesn’t, and who loses out? | BusinessDesk (Paywalled)
I had a bad dream last night..... I dreamt that a company I owned a significant amount of sold prime real estate holdings in auckland for $50m and the ability to finance off these buildings for $100m for future growth , and then used this exact amount to end up in the same position except owning a bunch of old world media, with the debt fully utilised
https://www.nzherald.co.nz/business/...OXCZPX54FQLNM/
This Cam Wallace fellow must be rubbing his hands together.
Gets to flick off a sh1tty company and walk away with a couple mil $ payday if he has it his way.
Nice. Just not for us.
Aye, my usual Tuesday night wet dream featuring our CEO and a takeover bid was interrupted with a ghoulish nightmare whereby we were about to waste our money on a questionable asset that had no significant synergies with our core business. It even came with a huge amount of debt too!
I woke up in a cold sweat.
How many listen to the radio these days?
BrianFM for the win!! (Which is not part of MediaWorks)
BrianFM ditches all the radio rules and keeps playing what it likes | Stuff.co.nz
Has Jarden been approached for comment on this? I wonder what their advice was to Sky on the MW transaction...