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
FX
National Geographic Channel United States
National Geographic Channel Worldwide

Speed
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.

No comments:

General disclaimer

The content contained in this blog represents the opinions of Mr. Hempton. You should assume Mr. Hempton and his affiliates have positions in the securities discussed in this blog, and such beneficial ownership can create a conflict of interest regarding the objectivity of this blog. Statements in the blog are not guarantees of future performance and are subject to certain risks, uncertainties and other factors. Certain information in this blog concerning economic trends and performance is based on or derived from information provided by third-party sources. Mr. Hempton does not guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. Such information may change after it is posted and Mr. Hempton is not obligated to, and may not, update it. The commentary in this blog in no way constitutes a solicitation of business, an offer of a security or a solicitation to purchase a security, 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.