Will these words haunt Eddie?
Eddie says Nine is back because its focus won't be on being a cash cow for people who had no real interest other than financial. Hmmm.
- Published by David Knox
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I’m archiving the following words now by Eddie McGuire, because I believe they could very much come back to haunt him.
In an article on Nine’s rescue in the Herald Sun, McGuire writes, “Yes, Nine is back in town, because for the first time in years their focus will be on being a successful television business not a cash cow for people who had no real interest other than financial in the game.”
Sure Nine is debt-free, now that private equity group CVC Asia Pacific no longer owns the company.
But it’s moved into the hands of hedge funds Oaktree and Apollo. Last I checked they weren’t exactly in the business of affection for the small screen down under.
Experts say hedge funds are typically in a position where they want to exit a company in two to three years.
Harold Mitchell tells The Australian, “What they (hedge funds) usually do is bring efficiency to organisations and we will see Channel Nine re-emerge as a private organisation ready to refloat again, as always, in three to five years.”
Seven West Media chief executive Don Voelte has warned its rival Nine its new US hedge fund owners will demand earnings of up to $500 million a year – more than double what Nine is making right now.
Allphones Arena, Ticketek and Channel 8 Darwin could be first to go. Star salaries could take a haircut.
“We’ve been owned by private equity for five to six years, so nothing really changes,” Gyngell has said.
“And I wasn’t aware that Kerry Stokes is in the habit of giving Seven management free kicks!”
15 Responses
Imparja will buy it now, as Nine will won’t to offload this ASAP
I wonder if Eddy subbmitted this resignation by text message, or did he confuse 10’s offers of volantary redundencies as their offer being for all nerworks?
I reckon WIN might still be keen to get its hands on NBN
I hope nine sort there channels out , they have some great tv programes , and re work the overnight tv , loose the home shopping blocks and put more entertainment on at that time , and drop babe tv , its just plain tacky
How long till Nero stars fiddling?
Nine has so much dead wood, they should be very afraid of a ‘fire sale’.
Boned by te next VC or hedge fund!!
So what is Eddie measuring the success of the business by, if not money?
Clint- I feel WIN would be interested, maybe. Doesn’t matter. Either way it will still just be a relay transmitter for TCN9.
Eddie, read up on what hedge funds do. They make money, they don’t run TV stations as someone’s plaything. I’m not sure what Eddie does at Nine these days but I’m guessing his name will be at the top of the “to go” list.
CVC may have owned Nine for 5-6 years but they clearly didn’t to a good job at running it. Oaktree & Co. will be out to not repeat CVC’s mistakes.
Surprisingly, I’m going to disagree with Eddie. As DK says, Oaktree and Apollo don’t exactly have a history of demonstrating their love for television, Australian or otherwise. In fact, I think Eddie has it arse-about and the hedge funds are going to try and turn Nine into even more of a cash cow (or, rather. actually a cash cow since CVC failed miserably there).
channel 9 probably wont exist in a few years… I can’t think of a single reason to watch…
What’s eddies contract worth?
For the value he adds – here’s your first cut.
Hedge funds are a financial vehicle whose sole purpose is to make money for its investors. They have no passion for the businesses they own, but they do like cash cows…..
We all knew this was true. He’s just confirmed it.
It’s interesting that people still call it Channel 8 Darwin. On 1st of January 2003, it became Channel 9 Darwin (although technically it is still on Channel 8). Wonder if due to the fact it’s now a fire sale, Imparja will be keen 🙂