SKT - Sky Network Television

Teitei · Oct 13, 2023, 10:42 AM

Quote from: Mysterion on Oct 13, 2023, 10:24 AMhttps://www.stuff.co.nz/business/133113209/mediaworks-reports-97m-loss-110m-drop-in-value

Mediaworks EBITA $34.4m

Who ever is buying Sky is likely buying Mediaworks.

Seems weird how both news events drop on the same morning!

Makes sense.

Cod · Oct 13, 2023, 11:14 AM

Trading at between 2.50 and 2.40 over the last couple of weeks say 2.45 as a benchmark. Offer at 25% above current benchmark price puts the offer at 3.06, sounds about right.

LoungeLizard · Oct 13, 2023, 11:15 AM

Wow! And to think I was just about to jump ship...

LoungeLizard · Oct 13, 2023, 11:25 AM

Orders already above $3. I doubt whether Sky would take $3 or any where near it, given they have no debt, surplus cash and so few shares. I'm hoping for $3.50-$4.00.

Mysterion · Oct 13, 2023, 11:37 AM

https://www.afr.com/street-talk/sky-network-television-taps-jarden-as-suitor-lobs-bid-20231013-p5ebzg

Cod · Oct 13, 2023, 11:57 AM

Off Halt top price 2.90

Mysterion · Oct 13, 2023, 12:51 PM

So 143.8m shares on issue with $56m cash at $2.47 pre offer price = EV ~$300m

Offer price of ~$3.15 would give ~$400m value for the business.

$400m NZD = USD $236m, so not a lot of money to find for a leverage buy out

Problem for the new buyers is that if you look at the value destruction of MediaWorks over the last 12 months it's easy to see how things can go pear shaped quickly in the media industry. Gonna have to factor that into the price some how. Unless they can partner with NZRU or Warner then it's a difficult business to takeover at any price.

Mysterion · Oct 13, 2023, 12:52 PM

Any offer at or above $3 should be recommended by the board and taken by shareholders ASAP!

Mysterion · Oct 13, 2023, 02:50 PM

https://www.nzherald.co.nz/business/media-insider-mystery-bidder-in-attempt-to-buy-sky/PTPFSEYWBFEILNKEUFW6HSAX5U/

"highly confidential"

The buyer is almost certain to be Warner and doesn't want this to be disclosed.

They're likely wanting all the existing SKY subscribers for their new streaming platform.

It's an easy buy because if Sky decline the offer all the Warner content is going from Sky anyway, so Sky shareholders have to accept.

Warner probably picking up Foxtel, seems unlike that will IPO.

Warner probably eyeing up Mediaworks too.

MEGA MERGER!

Mysterion · Oct 13, 2023, 03:03 PM

I think what's really happening is that they're waiting for the next government to be formed so that there's a new Minister of Broadcasting and Media.

I mean, you wouldn't want to be buying Mediaworks + Sky and then have to ask this guy for permission.

Hectorplains · Oct 14, 2023, 09:00 AM

Lovely, long puff piece with Maloney . You'd be forgiven for dismissing it with a TLDR but there's a few gems in there - althou' mostly unintentional.

Currie starts in with, "Sophie Moloney has come to lunch armed with her laptop and a set of headphones, and wearing what she describes as her lucky shoes. We'll come to the footwear story shortly." Which is fair warning for what's ahead.

The cringe factor peaks early, Moloney reveals an inhouse video for "special internal meetings, promoting the company's newly defined "purpose" – Share stories, Share possibilities, Share joy. It's a call to arms for the staff to understand why Sky is important in people's lives..." Sounds quasi religious... Hey, maybe they could register as a charity!

The most amusing bit is her 'learnings' from the Mediaworks muck around.
"We got some really clear feedback from our shareholders. They understood strategically but it wasn't the right time for investments. That's your owners giving you really good feedback." Jolly good, lucky that shareholders were on to it then to get the plug pulled, while management headed off on some banana skin high. Obviously, they get paid the big bucks to take their guidance from shareholders.

Beyond that she wants to sell more ads on Open (ex- Prime), isn't afraid of partnership ("I definitely don't want to sit here and say let's go build everything ourselves when we could partner and create a beautiful win-win") and she thinks the share price to be undervalue but doesn't know why...

It's all rather insipid and uninspiring . You're hopes as a holder have got to be on a firming up of the takeover.

mistaTea · Oct 14, 2023, 10:13 AM

Quote from: Hectorplains on Oct 14, 2023, 09:00 AMLovely, long puff piece with Maloney . You'd be forgiven for dismissing it with a TLDR but there's a few gems in there - althou' mostly unintentional.

Currie starts in with, "Sophie Moloney has come to lunch armed with her laptop and a set of headphones, and wearing what she describes as her lucky shoes. We'll come to the footwear story shortly." Which is fair warning for what's ahead.

The cringe factor peaks early, Moloney reveals an inhouse video for "special internal meetings, promoting the company's newly defined "purpose" – Share stories, Share possibilities, Share joy. It's a call to arms for the staff to understand why Sky is important in people's lives..." Sounds quasi religious... Hey, maybe they could register as a charity!

The most amusing bit is her 'learnings' from the Mediaworks muck around.
"We got some really clear feedback from our shareholders. They understood strategically but it wasn't the right time for investments. That's your owners giving you really good feedback." Jolly good, lucky that shareholders were on to it then to get the plug pulled, while management headed off on some banana skin high. Obviously, they get paid the big bucks to take their guidance from shareholders.

Beyond that she wants to sell more ads on Open (ex- Prime), isn't afraid of partnership ("I definitely don't want to sit here and say let's go build everything ourselves when we could partner and create a beautiful win-win") and she thinks the share price to be undervalue but doesn't know why...

It's all rather insipid and uninspiring . You're hopes as a holder have got to be on a firming up of the takeover.

Amen.

You forgot the bit where she relishes cooking a feed on the weekend for her kids so that she can just be a "normal mum".

N'awwwwwwwwww.

Mysterion · Oct 14, 2023, 11:13 AM

Quote from: Hectorplains on Oct 14, 2023, 09:00 AMLovely, long puff piece with Maloney . You'd be forgiven for dismissing it with a TLDR but there's a few gems in there - althou' mostly unintentional.

Currie starts in with, "Sophie Moloney has come to lunch armed with her laptop and a set of headphones, and wearing what she describes as her lucky shoes. We'll come to the footwear story shortly." Which is fair warning for what's ahead.

The cringe factor peaks early, Moloney reveals an inhouse video for "special internal meetings, promoting the company's newly defined "purpose" – Share stories, Share possibilities, Share joy. It's a call to arms for the staff to understand why Sky is important in people's lives..." Sounds quasi religious... Hey, maybe they could register as a charity!

The most amusing bit is her 'learnings' from the Mediaworks muck around.
"We got some really clear feedback from our shareholders. They understood strategically but it wasn't the right time for investments. That's your owners giving you really good feedback." Jolly good, lucky that shareholders were on to it then to get the plug pulled, while management headed off on some banana skin high. Obviously, they get paid the big bucks to take their guidance from shareholders.

Beyond that she wants to sell more ads on Open (ex- Prime), isn't afraid of partnership ("I definitely don't want to sit here and say let's go build everything ourselves when we could partner and create a beautiful win-win") and she thinks the share price to be undervalue but doesn't know why...

It's all rather insipid and uninspiring . You're hopes as a holder have got to be on a firming up of the takeover.

Teitei · Oct 14, 2023, 01:23 PM

I for one hope that there is no successful takeover of Sky.

NZ can ill afford to have another company be taken over by foreign interests.

Note how foreign interests have an uncanny ability to buy NZ assets & businesses cheap and then, sell back to NZers at hugely inflated prices - matter of timing and ability to hold.

mistaTea · Oct 14, 2023, 01:32 PM

Quote from: Teitei on Oct 14, 2023, 01:23 PMI for one hope that there is no successful takeover of Sky.

NZ can ill afford to have another company be taken over by foreign interests.

Note how foreign interests have an uncanny ability to buy NZ assets & businesses cheap and then, sell back to NZers at hugely inflated prices - matter of timing and ability to hold.

The majority of shareholder interest are big overseas corporates already mate.

Sky is already owned by foreigners.

If Pooman and co can get a deal of $400M or so over the line I think it would be more than fair given the very real risks sky still faces.

The clock is ticking very loud on the NZR deal now and it is far but certain how this will play out for sky.

Then there is the whole question about HBO and their own OTT offer.

If the bidder is WD then that would be a great outcome for SNT. It would guarantee its future and significantly reduce the impact of not holding the NZR rights (which then actually gives Sky a much stronger hand in negotiations).