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LIN TV Corp. Message Board

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  • value_invstr value_invstr Nov 11, 2012 6:31 PM Flag

    Damn JV

    The JV concern is way overblown. Retrans kick in next year and remember (nobody ever talks about this), the JV has $0 reverse retrans, it's 100% margin to us. If you look at the multiples that the CBS Nashville went for, the value of the JV easily covers the debt. What the market views as a liability will soon be viewed as an asset. Don't forget about our NOLS, $308m is nothing to sneeze out, Sinclair would love to have it.

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    • Value, you're a smart guy and I value your opinion, but what i read in the press release basically said that the reason they are still having to pony up another $6 million is because of capital expenditures AND the fact that retrans ISN"T going to kick in as they expected. I myself thought Comcast controlling NBC would jack up retrans so they could collect from other carriers as well. instead, they have determined that politically it is in their best interest to keep retran low which hurts TVL BIG TIME. This also will affect the cash flow multiples for which the value of the the JV is worth. I don't see Comcast letting it go bankrupt but we are YEARS away from this not being an albatross. It's a political football. I would also infer that somewhere out in the universe of retrans, TVL is sticking it to Comcast and this is their way to payback. DaninFW

      • 2 Replies to daninfw04
      • You are right but wrong. That is the real controlling shareholders, well represented by Lin's Board, don't care about the general shareholders even those as large as the Gabelli interests. Look up Young Broadcasting and Granite Broadcasting both bankrupt TV operators for historical proof of Gabelli and others riding the those two investments to zero. As a long retired financial executive of John Blair and Company (once a NYSE media company) taken over by Saul Steinberg and Reliance Holdings, and later as a consultant to Providence based Outlet Communications which was shaped up by WESRAY and sold at a good profit for all shareholders, I understanding TVL's business well. At least David Smith and the Smiths' at Sinclair Broadcasting are doing some things for the average shareholders even though they also control it and don't have to care for the other stockholders.

        If TVL were to aggressively buy back its stock or pay at least a token dividend, I might respond more favorably. As to outsmarting the Roberts family and the Comcast Company, don't bet on it. TIMH

      • Comcast isn't that petty. They wouldn't hurt themselves on the 80% they own to screw tvl on the 20%. It's obvious that tvl isn't involved in the jv and Comcast controls it and just sends them their budgets. I don't know why Comcast lowered either the amounts or the timing of the retrans. I'm guessing sloppy comminication. Regardless the retrans is coming, as management said, the jv will take care of itself. 6m is nothing compared to the 210m in ebitda we will do this year.

 

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