No More Funding For Channel Nine As Consolidated Media Puts Its Foot Down…
Danny | Oct 24, 2008 | Comments 0
Consolidated Media Holdings the organisation which owns 25% of the debt ridden PBL Media, owners of the Nine Network and NBN Television have released a media statement quashing investor speculation that the company has an obligation to provide further funding.
The James Packer backed company’s shares surged 8 percent on the news that Consolidated Media will not provide funding to PBL Media who’s 75% stake is owned by Private Equity firm CVC Asia Pacific. One of the options for Consolidated Media is to reduce its stake in PBL Media even further by selling off another 5 percent, with PBL Media facing a debt of $4.2 billion.
Several analysts have continued to valuate PBL Media at zero while they still value Consolidated Media at around $3.50 a share because of its stake in pay TV operator Foxtel, TV channels Sky News and Fox Sports and its stake in job web site Seek.
One analyst said, “What they’re pointing to is that you can disregard PBL Media, and you should be valuing CMH on its stakes in Foxtel, PMG and Seek.” This is not good news for the Nine Network which is struggling to compete with Seven and is in desperate need for a digital upgrade with new channels poised to come online from next year.
Source: Consolidated Media Holdings, 
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