Australia: Billions wipeout for nation's top two networks
- From: AleXX <somedeal@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>
- Date: Thu, 26 Feb 2009 17:01:56 +0800
MORE than $8 billion has been wiped off the value of Australia's two biggest television networks, Seven and Nine, since their long-time owners Kerry Stokes and James Packer cashed in their chips in the 2006 private equity binge. The networks are now worthless in their owners' accounts.
Kerry Stokes's Seven Network yesterday wrote down the value of its remaining 47 per cent stake in Channel Seven, the nation's most-watched TV network, and Pacific Magazines, to zero to account for the downturn in advertising markets.
Seven raised $3.2 billion in cash by selling a half stake in the media assets to the buy-out firm Kohlberg Kravis Roberts in November 2006 and in its previous accounts valued its remaining stake at $794 million.
The write-off comes just two months after James Packer staged his final exit from PBL Media, the owner of Channel Nine, allowing his remaining 25 per cent stake to be diluted to zero, having declined to inject more cash into the business he sold for more than $5 billion to CVC Asia Pacific.
While Mr Packer is now betting on casinos, Mr Stokes was keen to stress the media write-off was just an accounting item. Seven also wrote down its 22 per cent stake in West Australian Newspapers by $312.8 million and booked impairments for other assets, including its share portfolio.
http://www.brisbanetimes.com.au/news/business/billions-wipeout-for-nations-top-two-networks/2009/02/26/1235237780846.html
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