Re: MSOs in Europe -- Canal Plus
Thread,
Apparently the cable plants in Europe are following an analogous path that the US has/is undertaking. And look at who is interested (in bold below).
IMHO there is going to be multi-billion dollar spending in Europe pretty much timed to kick in when a lot of the US cable plants have been upgraded. Very good for the cable equipment infrastructure companies to continue their revenue streams for many years to come.
I've seen estimates where the US cable plant is supposed to be fully upgraded to two-way HFC in four years. I almost consider this estimate a joke. I'm guessing that revenue streams may start to decelerate in four years, but it certainly won't be drying up.
Even if it does, I'm now speculating that upgrading Europe will kick in about the time the US spending is slowing down. Perfect timing.
MikeM(From Florida)
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Kirch Media Considering Buying Stake in France's Pay-TV Leader Canal Plus
Munich, Aug. 26 -- Kirch Media KgaA, the commercial television unit of Germany's second-largest media
company said it may buy a stake in Canal Plus SA, Europe's biggest pay-TV company, to help stitch together a broader European network.
The unit of closely held Kirch Group also plans to sell 25 percent to 30 percent of its share capital to the public in 2001 ``at the latest' to finance expansion in Europe. A sale this year isn't likely, the company said.
European broadcasters are linking up to share the rising costs of buying programming and developing digital and interactive technology. Earlier this year Kirch formed an alliance with Italy's Mediaset SpA, while France's Canal Plus, which also operates in Italy, Spain and Scandinavia, held unsuccessful talks with British Sky Broadcasting Group Plc. ``It's a kind of interesting alliance to have a small stake in Canal Plus, which is present in basically all major European markets with the exception of the U.K. and Germany,' said Andrea Azzimondi, an analyst at Paribas Capital Markets who rates Canal Plus shares ``hold.' ``Certainly this makes sense for Kirch as well as Canal Plus.'
Vivendi SA, the French company's biggest owner, last month said it plans to cut its holding in Canal Plus to 40 percent from 49 percent, by selling a stake to a ``strategic international partner.'
At today's share price of 69.45 euros, 9 percent of Canal Plus would be worth 785 million euros ($821 million).
Internet Push
Kirch Media said it wants to focus its European expansion on France, Portugal, Poland and Greece.
Analysts expect Jean-Marie Messier, Vivendi's chief executive who has pushed the 146-year-old water utility into media, to seek a partner capable of accelerating Canal Plus's efforts to offer Internet and other online services to its clients. Microsoft Corp. and America Online Inc. are two companies that analysts consider to be possible investors.
Canal Plus's shares surged earlier this week amid speculation Germany's Bertelsmann AG, the world's third-biggest media company, could be preparing to buy the 9 percent stake after it raised $691 million by selling half of its stake in AOL. Bertelsmann and Vivendi declined to comment.
Time Warner Inc., the world's largest media company, is also considered a potential Canal Plus investor because it already owns 10 percent of Canal Plus's satellite TV service, CanalSatellite. |
