Latest / Early Edition with Ryan Bridge / Duncan Grieve: Spinoff founder and media commentator on Sky TV acquiring TV3

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Duncan Grieve: Spinoff founder and media commentator on Sky TV acquiring TV3 · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: The news for New Zealand Media. Sky TV is buying
• 0:02
  Speaker 1: three for a buck from Warner Brothers Discovery and it
• 0:05
  Speaker 1: will take on none of its debt. Investors were loving
• 0:08
  Speaker 1: it yesterday's shares and Sky ended up up five percent
• 0:11
  Speaker 1: more than three bucks. Dunk and Greeves spinoff founder and
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  Speaker 1: media commentator with me this morning.
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  Speaker 2: Hey Duncan, Good morning, Ryan.
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  Speaker 1: Good to have you on the show. So what is
• 0:21
  Speaker 1: this a good smart business decision from Sky?
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  Speaker 2: I think anytime you can buy a business that's got
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  Speaker 2: one hundred million dollars in revenue for a dollar, if
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  Speaker 2: you want to take a hard look at it, it
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  Speaker 2: obviously says something about the nature of the sector that
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  Speaker 2: it goes for that price. But you know that there's
• 0:40
  Speaker 2: a reason why analysts were very hot on this. It
• 0:43
  Speaker 2: uster have been quite cool on the Media Works acquisition
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  Speaker 2: a few years ago for Sky. So yeah, great deal
• 0:49
  Speaker 2: for Sky.
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  Speaker 1: I think it leads them with and you point this
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  Speaker 1: out in your column. With a lot of things, a
• 0:53
  Speaker 1: lot of fingers and a lot of pies, a lot
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  Speaker 1: of apps to run, you know, a lot of linear
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  Speaker 1: TV channels to run. Do they need them or will
• 1:00
  Speaker 1: they need them all? Or will they rationalize.
• 1:03
  Speaker 2: Yeah. I think that's been a persistent issue for skuy
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  Speaker 2: dating back to probably the John Phillett era CEO when
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  Speaker 2: they tried to merge. If you remember with Vodaphone, that
• 1:15
  Speaker 2: they've got a lot of different pieces of technology, and
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  Speaker 2: if you look at the pre eminent modern sort of
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  Speaker 2: TV media company at Netflix, which is just a single
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  Speaker 2: property so that you can get on any device anywhere
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  Speaker 2: in the world, Sky much smaller company, a much moreer
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  Speaker 2: market and has a lot of different things going on.
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  Speaker 2: So I think they're at a great scale now that
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  Speaker 2: certainly they can rationalize that. Not necessarily the brands, I
• 1:44
  Speaker 2: think that you can live with that, but certainly a
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  Speaker 2: number of different technology platforms and how they talk to
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  Speaker 2: each other that will be a sorder of business to me.
• 1:52
  Speaker 1: At the back end. What about their projections, their growth projections.
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  Speaker 1: I mean, given what you know about the state of
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  Speaker 1: running media companies in New Zealand right now, especially ones
• 2:02
  Speaker 1: that are relying on advertising, that projection of earnings growth
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  Speaker 1: of at least ten million a year by twenty eight
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  Speaker 1: I think it was you know, these things realistic.
• 2:13
  Speaker 2: I think so, I mean, Sky ultimately buys a lot
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  Speaker 2: of content on one side, from sports to entertainment to some
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  Speaker 2: international news and then try to sell it a bunch
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  Speaker 2: of different ways. Some of it they had supported. Some
• 2:29
  Speaker 2: of it, you know, a lot of it are subscription revenue.
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  Speaker 2: But what they've done now is really build that that
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  Speaker 2: had supported side of the business, but a stake and
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  Speaker 2: over time just you know, take the content that they
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  Speaker 2: already have and put it in a bunch of different places.
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  Speaker 2: And that's what three and three now offer them far
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  Speaker 2: bigger scale of free to health, really accessible content they've
• 2:53
  Speaker 2: had for They've actually done well in advertising Sky in
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  Speaker 2: a market that's been pretty terrible for a lot of
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  Speaker 2: local media. So you know, it really does look like
• 3:03
  Speaker 2: a very there's a basket and here which which a
• 3:07
  Speaker 2: great discus and also great for three, which has had,
• 3:10
  Speaker 2: as you will know, reluctant owners for a long period
• 3:13
  Speaker 2: of time.
• 3:14
  Speaker 1: Now, Yeah, reluctance the nice word. I think duncan thank you,
• 3:19
  Speaker 1: Dank and Grieve spin off founder and media commentator on
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  Speaker 1: the Sky three deal. For more from Early edition with
• 3:25
  Speaker 1: Ryan Bridge, Listen live to news talks it'd be from
• 3:28
  Speaker 1: five am weekdays, or follow the podcast on iHeartRadio.