If I had a team of analysts, I'd ask them to calculate the total size of the TV revenue pool and what portion of profit to ascribe to each Channel. Then I'd ask them what a 4% rise in ratings for Channel 10 in the key demographic meant to their share price. Then I'd ask what does that mean if the costs of its Newsroom is slashed or is non-existent (because Sky can take up the slack)? I suspect the answer to be closer to the Hitch-hiker's guide than 23.
Then I'd ask who do we bid with for AFL rights - Kerry's with us with Malcolm but what more? And a $10M cut in licensing fees?
No brainer. Buy Channel 10 and Oz is complete - with or without a knighthood. Buy WIN later to complete the coup. Vague - you join the dots.
TEN Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
