CBS/Palotay - Thanks for reminding me (though the above news item did too!). That offer is one of the reasons they began to drop off and I knew this was coming as their CBS subscription service is not getting the traction they'd hoped with just Star Trek and a couple of other unique things (though Star Trek Discovery is great). Now they are trying to buy LGF, who own Starz so they can get their film library but are you going to cancel Comcast and go with CBS because you can't get Starz anymore? I hate the way this whole industry is going...
LGF has $4Bn in revenues and makes about $150M a year yet CBS is willing to pay $5Bn (33x) even though they are valued at $18Bn on $2Bn in earnings (9x) so they want to spend $5Bn - effectively diluting you by 25% in order to add 7.5% to earnings? That seems silly, right? They are doing this to cover up the mistake they made with CBS All-Access, not because it's a good decision.
| Year End 31st Dec | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | TTM | 2019E | 2020E | CAGR / Avg | |
| $m | 14,005 | 13,806 | 12,671 | 13,166 | 13,692 | 14,514 | 14,920 | 15,485 | 16,155 | +0.7% | |
| $m | 3,025 | 2,544 | 2,658 | 2,691 | 2,460 | 2,768 | 3,224 | -1.8% | |||
| $m | 1,879 | 2,959 | 1,413 | 1,261 | 357 | 1,960 | 3,032 | 2,107 | 2,370 | +0.8% | |
| $ | 2.79 | 2.41 | 3.18 | 3.46 | 3.53 | 5.00 | 7.89 | +12.4% | |||
| $ | 2.81 | 2.91 | 3.24 | 3.86 | 4.38 | 5.44 | 7.49 | 5.62 | 6.52 | +14.2% | |
| % | +19.4 | +3.7 | +11.4 | +19.1 | +13.4 | +24.1 | +55.8 | +3.32 | +16.0 | ||
| x | 8.89 | 6.46 | 8.61 | 7.42 | |||||||
| x | 2.68 | 1.95 | 0.54 | 0.62 | |||||||
| Profitability | |||||||||||
The VIA deal is another thing but at least VIA is a more similar operation with a similar valuation and, of course, if you put those two together first then the dilution of LGF becomes negligible but still hard to justify.
