Monday, July 7, 2008

So the weather channel is worth 3.5 billion

GE and partners (presumably knowledgeable partners) have purchased the Weather Channel for an undisclosed amount reputed to be $3.5 billion.

This is less than the $5 billion mooted before the credit crisis hit – but it seems an awful lot of for my beloved GE to pay.

I got one question: if the weather channel is worth that much what is this portfolio worth?

FOX Business Network
Fox Movie Channel
FOX News Channel
FOX College Sports
FOX Sports Enterprises
FOX Sports En Espanol
FOX Sports Net
FOX Soccer Channel
FOX Reality Fuel TV
National Geographic Channel United States
National Geographic Channel Worldwide

Stats, Inc.

There is something wrong here. Either GE paid too much or News Corp is a steal at this price or both.

Pet suspicion: both.

Warning: see comment on News Corp in my first "things I stuffed up" post.

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The content contained in this blog represents the opinions of Mr. Hempton. Mr. Hempton may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Hempton's recommendations. The commentary in this blog in no way constitutes a solicitation of business or investment advice. In fact, it should not be relied upon in making investment decisions, ever. It is intended solely for the entertainment of the reader, and the author.  In particular this blog is not directed for investment purposes at US Persons.