Mr. Solorz, the sole owner of the second largest Polish commercial TV station Polsat, has reopened negotiations on selling a 25% stake in his company to a strategic investor, after talks with German Bertelsmann ended without any conclusion, on disagreements over managerial control issues, today’s ‘Gazeta Wyborcza’ said. Among potential buyers of Polsat the newspaper mentioned News Corp., CME, MTG and Axel Springer.
Our view: We view the likelihood of CME becoming the strategic partner of Polsat as small, since the managerial control issues are likely to become a stumbling block again, considering CME preference for acquiring controlling stakes in its TV stations. We are also skeptical regarding any quick outcome of the talks, which might in effect strengthen TVN rival programming and marketing skills, considering Mr. Solorz indecisiveness. We view the news as neutral from the perspective of both CME and TVN.