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
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.
Retrans is not relevant. Part of San Diego and Dallas areas are served by Comcast. You don't think Comcast is going to pay the JV do you? More important is what they told you on the call, Capital expenditures are going to delay cash flow positive results for an additional two years, because they want to build a new facility.