A group of investors wanting to take private some of the largest media companies at high prices and willing to accept large debt for it? I kind of wonder what they expect to get out of it. This kind of a media consolidation at a loss smells of political and not financial motives to me, and I have to wonder if someone's not trying to be the next Rupert Murdoch.
The money is made in the transactions. The company, likely will be IPO'd a few years hence, because the money is made in the transaction. One can get rich through financial manipulation that is economically unsound. People are worried about taxes, but they should be worried about having their money stolen through financial manipulations of various kinds.
Investors do not take a company private, to the tune of $26 Billion, for "politics".
Ah my poor, benighted child. When was politics ever about anything but money?
If you don't see the sense in owning the equity and using it to further one's agenda, then I fear you'll be condemned to never have much of either. (Pace, Ben Franklin.)
The group of investors is the Mays family. I am a former employee who still has many contacts there. In another deal, some of their assets will be in new hands, but only a 10% part of it which is under-performing. These include the CC Television and some 448 radio stations.
This happens all the time, in every industry. Private equity firms buy public companies at a premium, take them private, shake things up, and sell them to someone else or take them public again. They are betting that they can do better with the company than current management, or chop the company up into smaller parts or put it together with other companies, to unlock value.
186,000 Miles per Second. It's not just a good idea. IT'S THE LAW.
Call me suspicious, but... (Score:3, Interesting)
Private back to IPO (Score:1)
"They" do it for the money. (Score:3, Insightful)
The do it because they think the publicly traded company is worth more than the market does.
See here [wikipedia.org] for a nice summary.
Re: (Score:2)
Ah my poor, benighted child. When was politics ever about anything but money?
If you don't see the sense in owning the equity and using it to further one's agenda, then I fear you'll be condemned to never have much of either. (Pace, Ben Franklin.)
Re: (Score:2)
Ah my poor, benighted child. When was politics ever about anything but money?
Since forever. Politics is about power, which is only incidentally involved in money.
"Private investors" = Mays Family (Score:1, Informative)
Re: (Score:2)