| | | Re SNI - the debt after the TVN acquisition seems manageable at 2.7x EBITDA, SNI has very little Capex, so mot of the EBITDA goes straight into the company coffers (after paying interest and taxes of course), so they can deliver easily. My guess is that they just abstain from share buybacks for a while, I think it is unlikely that the dividend will be cut as investors hate it, much easier just to stop the more discretionary buybacks.
As for TVN, I am not sure it is a good acquisition. The company itself is fairly profitable, but also significantly indebted, so most likely TVN will need to delever. That is why I don't think that SNI will see cash flowing from TVN for a while, unless they buy the whole company, not just the majority stake. |
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