You have got to wonder who would want to buy a TV distribution service like Sky, given its clear that Content producer are all moving to a direct to consumer delivery model, 

Their tie up with NZ rugby might be a selling point,.... but I can't see much else going for them 

If it is one of the Telcos it will never happen, more likely an investment group swooping in on the very low share price to pick up a bargain then asset strip and sell of the programming rights

MikeB4:

 

Asset strip and sell of the programming rights

 

Last time I looked its "Assets" aren't much, 

They own a bunch of transponder slots- that with things like SpaceX are now likely losing value, 

They have a huge bunch of boxes spread around the country, again depreciating as we speak, 

and some content rights, that may or may not be transferable 

If you are a corporate raider, your best bet is the gut the staff and content creation,  and then try to flick it on to another sucker

The sporting content rights are valuable as long as they are locked into contracts with a decent lifetime remaining, as is its customer list. The market cap is around $360m and it has a dividend yield of 6%. Once they can get out of those transponder slots (which are a financial millstone) and become 100% internet based they could be quite a good little earner for one of the large international streamers or network companies wishing to setup in NZ.

Whatever the outcome, it's hard to believe that their subscribers will end up better off.

Hopefully its an aussie entity, NZ is too small for a standalone operator. Made sense when satellite was the only option now its all online

Lump the SKY NZ operation into an aussie one. Give us access to Australian programming. 

Foxtel/Kayo/Stan Sport/Optus Sport

Resumed trading just before noon, looks like they have risen quite a lot in less than an hour.

The market loves a good take over. 

johno1234: The sporting content rights are valuable as long as they are locked into contracts with a decent lifetime remaining, as is its customer list. The market cap is around $360m and it has a dividend yield of 6%. Once they can get out of those transponder slots (which are a financial millstone) and become 100% internet based they could be quite a good little earner for one of the large international streamers or network companies wishing to setup in NZ. 

The problem with going pure streaming is you will need to send out a LOT of boxes to your current customer base, many of them will have dodgy internet and won't be able to move to streaming.

Also shifting your mostly existing fixed priced input costs on sunk assets (uplink dishes, encryptors and the whole stack) to a variable price for streaming via your Akamai CDN will most likely not end up cheaper.

The other downside to moving to Akamai CDNs is you are no longer in full control of the stack, if a Akamai CDN for Vodafone in the south island craps itself in the middle of the AB game you now have 50k of your customers super angry with you and their neighbours on One/Spark/Other ISP are fine and you look like the idiot.

Lastly it's not until you have everyone off that you can stop paying for the Transponder. Which will be locked into a long contract. So if you were going to exit you would know when the contract expires, so have communicated out to your customers and shipped them boxes 6 months in advance as you would spend a long time mopping up the remainders.

I personally can't see Sky getting out of the Satellite business as there are just too many use cases where linear Satellite broadcast excels in reliability and nationwide access over streaming. 

Announcement today that Sky's board has rejected the offer which in their view, fell short of the fair intrinsic value of Sky.

https://www.nzx.com/announcements/421232

evnafets:

 

Announcement today that Sky's board has rejected the offer which in their view, fell short of the fair intrinsic value of Sky.

 

https://www.nzx.com/announcements/421232

 

Well at least what management think is fair value... lets give the market a few years to determine if they are right, 

Posit, Telecom got over $2 billion for the Yellow pages in 2007, the Canadian Teachers who bought it basically could have set fire to their money and got better enjoyment...

The longer Sky's board wait, the lower that fair intrinsic value will become. Just like a homeowner that is holding out for top dollar in a declining market. The only difference is if a homeowner waits long enough the market will eventually turn.

Senecio:

 

The longer Sky's board wait, the lower that fair intrinsic value will become. Just like a homeowner that is holding out for top dollar in a declining market. The only difference is if a homeowner waits long enough the market will eventually turn.

 

Were they lookin for an offer of a buy out though and do we want to see yet another company disappear of the NZX? The value has declined a lot, but has gone back up a lot from it's lows more recently. They do have a lot of content including most sport, and their online app and offerings have improved a lot, and they also have less local competition in this area now.