Sony Entertainment to buy stake in SAB TV

TATrader · #1 27th September 2004, 07:14 PM

Sony Entertainment to buy stake in SAB TV

Quote:

Sony Entertainment Satellite (Singapore), a unit of Sony Corp., said on Monday it will buy a stake in Indian broadcaster Sri Adhikari Brothers TV (SAB) and distribute the channel exclusively.

The Sony-SAB deal is just the latest in a process of integration which has accelerated recently in the industry.

In a notice to the National exchange, SAB said the valuation and size of the stake would be determined at a later date.

Shares in SAB TV, positioned as a humour channel, ended 3.9 percent lower at 89.70 rupees. The Bombay index slid 0.3 percent.

"It is a time of consolidation in the industry, and the future for networks is through subscriptions," said Markand Adhikari, a managing director at SAB TV. "It is also necessary for a channel to align with a prominent bouquet to grow."

SAB TV, launched in 2000, is free-to-air and operates as a stand-alone general entertainment channel. It also makes content.

Sony Entertainment's fully-owned Indian subsidiary lags leader Star India, owned by Rupert Murdoch's News Corp., in advertising revenues and subscribers in India's 48-million-strong cable TV base, the world's third largest.

bargain_hunter · #2 27th September 2004, 09:07 PM

Hi Tatrader,

I beleive this script is overpriced @ 90 and up move from here might just be for short term..what's your take on this ? Would appreiciate your comments on this

Regards,
Bargain hunter.

TATrader · #3 28th September 2004, 08:09 AM

This write up actually a SELL signal for those who follow the "BUY on Rumour and SELL on NEWS" adage.

This is an axiom whose underlying message is that stock market prices rise when there are positive rumours about a company, but often fail to sustain high levels when the facts actually become known.

This old adage is truer than most. Unfortunately, it reflects the fact that the market is driven to a greater than desirable extent by inside information. This is life, and like the worlds oldest profession, it is hard to see how it will ever be fully legislated away.

What happens is that when good news is about to break, some people close to the company inevitably let it slip to their friends, or even arrange some surreptitious buying for themselves. A rumour often leaks out into the market that a particular announcement or deal is on the way. The share price rises, often accompanied by a query from the corporate plod, as people privy to the rumour get set. The company usually replies to the standard ASIC query with standard answers, to the effect that they are not aware of any reason for the rising price.

When the good announcement finally hits the market however, (surprise, surprise) the psychology shifts. Instead of thinking, 'that's good news, let's buy the stock', the majority thinking goes more along the lines of, 'that's it, the news is out...time to take our profit'. So, apparently perversely, the stock price often falls, leaving the inexperienced punter perplexed. It must be a common occurrence for Brokers to take calls from such people, asking why seemingly good news has been so poorly received by the market.

The thing to never lose sight of is that stocks do not rise or fall because they are 'good' or 'bad', they rise or fall because of an imbalance of buyers and sellers, which is caused by the perception that they will rise or fall, which in turn is somewhat, but not entirely, based upon whether they are 'good' or 'bad' value.

saikripa · #4 12th October 2004, 05:55 PM

Now that Sony Entertainment has denied the deal with SAB TV,as per the latest market rumours SET is now evaluating BAG films for taking stake.

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