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Southern Cross Media Group (ASX:SXL) has finally pawned off a basket of its TV assets that nobody really wants, and investors have responded by selling off the stock -2.3% to 64cps.
That said, the downward move is on less than $54,000 worth of trades according to a third party service porting Morningstar data.
SXL’s basket of struggling TV assets has been the subject of at least one failed buyout offer in the past. Everybody wants its radio stations, but not so much the TV stations. Age of the smartphone, after all.
But now it’s found a buyer. Enter privately held Australian Digital Holdings (ADH), an ‘online TV’ streaming news channel based in Sydney and recently courting US-based right wing conservative commentators.
It goes without saying Southern Cross is probably just happy somebody has taken the TV stations off it hands – even if that needs to be a company based in the suburb of Chippendale importing bible-clutching yank content to an Australian audience on the other side of the world.
SXL will walk away with $6.35M in total value from the deal, but it only gets around $3.75M in cash. The remainder will be provided by ADH in the form of ‘transactional service arrangements.’
What arrangements ADH could offer SXL aren’t exactly obvious. The TV assets it sold were in Tasmania, Spencer Gulf, Darwin, Mt Isa, and remote Australian regions. Perhaps not a bad basket of demographics at which to broadcast American right wing ephemera.
SXL last traded at 64cps.
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