Cable TV

Fox moves to garner funds; Fox or Time Warner, who will blink first?

BENGALURU: It was a deal, the possibility of which they had announced in May 2014. The media pundits said that it was inevitable, now that Rupert Murdoch’s 21st Century Fox (Fox) bid to buy out Time Warner had been rejected by the latter in mid-July 2014.  Fox needed to sweeten the offer with a higher bid and with the proceeds from the BSkyB deal, the company would not have to go in for a very big addition to its debt.

 

Fox has gone ahead and done just that. Last week on Friday, Fox through a press release announced that it will transfer Sky Italia and its 57.4 per cent interest in Sky Deutschland to BSkyB to create a pan-European digital television leader through the combination of these assets.

 

The release said further: ‘In exchange for the transfer, 21st Century Fox will receive approximately $ 9.3 billion in value from BSkyB comprised of approximately $ 8.6 billion in cash and BSkyB’s 21 per cent interest in National Geographic Channels International, raising 21st Century Fox’s ownership stake to 73 per cent. In addition, 21st Century Fox will participate in BSkyB’s announced equity offering by purchasing approximately $ 900 million of additional shares in BSkyB to maintain the Company’s 39.1 per cent ownership interest. The net, after-tax cash proceeds to be received by 21st Century Fox upon completion of all the elements of this transaction will approximate $ 7.2 billion. The agreement is subject to regulatory approvals, the approval of BSkyB stockholders and customary closing conditions.’

 

Confirming the deal, in a message to his staff, Sky CEO Jeremy Darroch said, “The three companies complement each other well. We all operate businesses that look similar and offer similar products, and of course we share the same brand. But our affiliation goes deeper than that. We may work in different countries, but our corporate culture and values are familiar. Our teams know each other well and have a history of working together. So I am confident that this is a combination that will work well.” Darroch added, “We expect this process to take several months to complete.”

 

So far Fox has chosen not to directly comment about the rejection of its bid or move by the Time Warner board that would stymie any action by 15 per cent or more of Time Warner’s shareholders that could favour bids by Fox and force Time Warner to consider being taken over. Fox has not commented on the Writers Guild of America, West (WGAW) speaking against any agglomeration of media companies and more specifically the WGAW’s opposition to Fox’s proposal for taking over Time Warner.

 

However, in an oblique statement, the Fox release quotes its chairman and CEO, the 83 year old Rupert Murdoch as saying, “Our renewed authorisation for our share buyback program will be executed regardless of any potential acquisition or investment activity by the company. 21st Century Fox’s number one priority is increasing shareholder value in a disciplined manner and as a result, we will only consider transactions that fully support this objective.”

 

Bloomberg reported on Saturday that Fox  is open to giving Time Warner shareholders seats on the board of the combined company should its $ 75 billion takeover bid succeed, attributing this to people familiar with the situation. Media reports suggest that the offer for board representation could appear in a revised proposal and that one of the reasons for Time Warner’s rejection of Fox’s overtures is that its shareholders are being offered non-voting shares by Fox.

 

So it is more of a question of ‘when’ and not ‘if’ a fresh proposal is made by Fox. We should hear soon more about the Fox –Time Warner takeover/merger saga that will take two to three years to consummate, if it happens.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/26/Untitled-1_35.jpg?itok=aV38N5LG
Siti Network looks to raise $100 million

Essel group multisystem operator (MSO) Siti Network has plans to raise $100 million though an issue of securities and/or equity related instruments. The company informed the Bombay Stock Exchange (BSE) that it needs the money to fund its operations. It has an ambitious plan to further expand its...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/19/Untitled-1_4.jpg?itok=5SbRaNtY
Siti Networks says price revision benefits will accrue in second half

DAS paralysis in phase III markets is having an impact on Siti Networks (Siti Cable) performance. This was revealed by CEO V. D. Wadhwa to CNBC TV18 today.

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/18/Untitled-1.jpg?itok=ULfulEhc
Hathway board clears GTPL IPO

Even as naysayers have been saying investor sentiment is pretty negative about the cable TV distribution sector in India, here is a company which is looking to swim against the tide. Cable TV and broadband internet services provider Hathway Cable & Datcom’s board today gave it the thumbs up to...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/16/Subhash%20Chandra.jpg?itok=yX8Ygq-I
Subhash Chandra's brothers step down as Siti Networks promoters

Mumbai: There’s change in the list of promoters at Siti Networks (earlier known as SitiCable). The national Indian MSO informed the Bombay stock exchange last week that - as part of a family arrangement and agreement - Jawahar Lal Goel, Laxmi Narain Goel and Ashok Kumar Goel along with their...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/16/SITI%20network.jpg?itok=-OCg_g0z
Siti Cable Network renamed as Siti Networks

MUMBAI: A new name brings in new vibes and possibly a new direction. At least that ‘s what the Essel group is aiming for if one goes by the name change it has resorted to at its national cable TV MSO Siti Cable. Last week, It informed the Bombay stock exchange, that it will be called Siti...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/12/Untitled-1_0.jpg?itok=ou2_KgVz
SNL Kagan says US cable TV will be robust despite decline in video

The naysayers have been making a cacophony of sound about the upcoming gradual squeezing out of life of the US cable TV sector. They have been citing the rampant cord-cutting, slimming down of bundles and the explosion in cheaper alternative OTT services as clear indicators that the countdown...

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/09/cableTV.jpg?itok=fVGWf9Ae
GST: Both good and bad for the Indian cable TV sector

MUMBAI: India’s most ambitious indirect tax reform, the Goods and Service Tax (GST) got the green flag from the Lok Sabah on 8 August.

Cable TV Local Cable Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/08/Hathway%20Connect.jpg?itok=mcHzoEo0
Hathway goes mobile with Hathway Connect

Hathway has taken its path breaking LCO portal- Hathway Connect to the next level by launching the Mobile APP version for its local cable operators (LCOs), which will further enhance and empower the operators in strengthening their business operations while “On The Move.”

Cable TV Multi System Operators
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/08/12/cablea.jpg?itok=Dvy_SoL0
DAS effect: MIB registered MSOs' list nears 1,000

Although the government is adamant about extending the deadline of the final phase of digital addressable system, the couutry which claims to have more than 60,000 cable operators is finally nearing a total of 1000 multi-system operators who provide signals to them.

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories