Well, firstly, it is important to attract a like minded long term media investor who has sufficient funds to help purchase FXJ radio. I don't think JS, MK and MRN investors would be able to raise these funds alone as MRN is valued around $80-85M at present and FXJ will cost around $240m. The other option would be to attract institutional investors but I don't believe they will be a committed to the long term like GR would, nor would they necessarily "share the vision" and can be susceptible to flipping stock without rhyme or reason despite their claims to being conservative. I am sure JS , being a good friend of GR, will be able to explain in great detail the significant benefits that lie ahead for MRN should they succeed in this acquisition. MRN will occupy a very unique position in the media landscape as they will have a truly national talk back radio listening audience but , unlike FXJ, they are able to connect with the Australian public like no other media entity in my opinion. In fact, they are almost like a de-facto Govt on many issues, most recently the Carbon Tax. Look at Labor's recent polls, MRN can take a lot of credit for their dismal performance as they have garnered public opinion in a way that political parties can only dream of. Anyway,to answer your question. I am very sure JS, MK and RT will consider their loyal shareholders when structuring the FXJ acquisition. I can't be more specific but I think they acknowledge that loyal long term investors who understand and share their vision are one the greatest assets a publicly listed entity can have. I am sure you won't be disappointed.
MRN Price at posting:
$1.10 Sentiment: Buy Disclosure: Held
