TVG Sold?

[startngate]

Looks like a deal is getting close.

From the Macrovision PR ...

http://biz.yahoo.com/bw/081106/20081106006454.html?.v=1

" ... as well as the results of the TV Guide Magazine, TV Guide Network, TVG Network and eMeta businesses, all of which are classified as discontinued operations."

Blood Horse report ...

http://news.bloodhorse.com/article/47950.htm?id=47950

Obviously the next question is ... who bought it?

[NoCal Boy]

Analyst day is on Monday for Macrovision. One would think a deal is very close as it takes a bit of time to close a deal and they want it done by year end. If they announced it today, it would normally take all of the balance of the year to close the transaction.

Looks like a deal is getting close.


From the Macrovision PR ...

http://biz.yahoo.com/bw/081106/20081106006454.html?.v=1

" ... as well as the results of the TV Guide Magazine, TV Guide Network, TVG Network and eMeta businesses, all of which are classified as discontinued operations."

Blood Horse report ...

http://news.bloodhorse.com/article/47950.htm?id=47950

Obviously the next question is ... who bought it?

[rrbauer]

I think that the only entity that would buy TVG is CDI/Twin Spires and then they will walk away from their deal with HRTV. This would position TS as the top ADW in the country with the best TV production operation for racing. I can't see any non-racing entity buying TVG and CDI/TS has the best financials among the racing interests that TVG would fit into. If I'm right about this; and if, as reported, MEC is going to sell flagship properties to help with their debt bailout then HRTV will be running on fumes.

Only middle-east money would make sense otherwise.

[miesque]

I think that the only entity that would buy TVG is CDI/Twin Spires and then they will walk away from their deal with HRTV. This would position TS as the top ADW in the country with the best TV production operation for racing. I can't see any non-racing entity buying TVG and CDI/TS has the best financials among the racing interests that TVG would fit into. If I'm right about this; and if, as reported, MEC is going to sell flagship properties to help with their debt bailout then HRTV will be running on fumes.

Only middle-east money would make sense otherwise.

Those are my thoughts as well, the only candidate that has both the financial capability and possible synergy is Churchill Downs for the reasons you listed. I know there are some rumors out there that its youbet.com but I just find it hard to believe they have the financial capability based on their balance sheet and earnings.

[highnote]

Those are my thoughts as well, the only candidate that has both the financial capability and possible synergy is Churchill Downs for the reasons you listed. I know there are some rumors out there that its youbet.com but I just find it hard to believe they have the financial capability based on their balance sheet and earnings.

Maybe a leveraged buyout?

....If they can raise that kind of money.

[MikeH]

Classifying a Business Unit as "Discontinued Operations" is an Accounting Rule that says you've made the decision to get rid of it. It's been a while since I've been involved in one of these, but they can frequently take months for an actual sale is done. When I worked on these (10 years ago), you didn't even need to have a buyer identified... Unless someone else out there is more current on the rules than I am, this doesn't mean a sale is eminent, although Macrovison says they want to have it done by year-end...

[pktruckdriver]

Humor me here , please


Only Middle East money would make sense here??


How much money we talking here, just millions or what.



When and only when the ADW's get it together, do they have potential to put thru a billion a year in bets, or not.

That is a boatload of money, it would be hard not to profit from that much money.


Patrick

[tundral]

Maybe they wil get rid of talking heads .Show us post parades and races. maybe

[Imriledup]

Maybe they wil get rid of talking heads .Show us post parades and races. maybe

Whatever they think will make them money is what they are going to do. Showing post parades isn't going to make them as much money as talking heads yelling at you to bet.

Also, the reason talking heads are always needed is because if there's a race you want to skip or are thinking about skipping, there's always a head to tell you who they like and give some sort of logic as to why they like it. If you think that any head makes a good case, you can be off to make a bet you might not have made otherwise.

talking heads forever!

[richrosa]

Maybe a leveraged buyout?

....If they can raise that kind of money.

Not possible. You can only do a leveraged buyout against positive EBITDA (or adjusted profits), of which TVG has none.

I doubt Dubai plays here. They have never looked to enter the bet side of the business, therefore TV makes no sense. My money is not on CDI. I'm sure they think it would be cheaper for them to do this on their own if they break ranks with HRTV, which I wouldn't expect them to do right now.

You gotta look elsewhere....

[BIG49010]

How about ATR, they show all our races in Europe?

[Otis11]

You gotta look elsewhere....
Just some very irresponsible speculation, but, what about Halsey Minor?

Otis

[Valupix]

Humor me here , please


Only Middle East money would make sense here??


How much money we talking here, just millions or what.



When and only when the ADW's get it together, do they have potential to put thru a billion a year in bets, or not.

That is a boatload of money, it would be hard not to profit from that much money.

Patrick
Highly unlikely!

I'm assuming that Middle Eastern money means someone also of the Muslim faith, who are EXTREMELY anti-gambling.

[Valupix]

I think that the only entity that would buy TVG is CDI/Twin Spires and then they will walk away from their deal with HRTV. This would position TS as the top ADW in the country with the best TV production operation for racing. I can't see any non-racing entity buying TVG and CDI/TS has the best financials among the racing interests that TVG would fit into. If I'm right about this; and if, as reported, MEC is going to sell flagship properties to help with their debt bailout then HRTV will be running on fumes.



Not sure what you mean by "walk away," but it wouldn't be logical seeing that they own 50% of HRTV.

I wouldn't be shocked to see Keenelands name show up somewhere in the TVG sale.

They bought Turfway mostly to keep Churchill from taking full control of racing in the state of Kentucky and I can't think they'd be happy to see Churchill in control both racing networks.

[richrosa]

I wouldn't be shocked to see Keenelands name show up somewhere in the TVG sale.



Very interesting....

[rrbauer]

Not sure what you mean by "walk away," but it wouldn't be logical seeing that they own 50% of HRTV..

CHDN invested $1.5 million in the HRTV deal and has been losing money on that investment since. TVG has superior distribution to HRTV probably reaching three or four times as many households and CHDN wouldn't have to share flagship status with the Magna tracks. What's to "walk away" from? Their investment in TrackMedia is $400,000. Same question.


I wouldn't be shocked to see Keenelands name show up somewhere in the TVG sale..
Why would Keeneland do this? As it is, they make much more money from their sales operation than they do from racing. The Keeneland botique meets enjoy top draw on TVG as it is. Why would that change if CHDN owned TVG?


They bought Turfway mostly to keep Churchill from taking full control of racing in the state of Kentucky and I can't think they'd be happy to see Churchill in control both racing networks.
I don't know why Keeneland invested in Turfway, somethng that they may be questioning themselves these days; and, as long as MEC owned 50% of HRTV, CHDN wouldn't control that anyway. (Assuming CHDN ontinued participating in the HRTV deal if they owned TVG.)

[jonnielu]

CHDN invested $1.5 million in the HRTV deal and has been losing money on that investment since. TVG has superior distribution to HRTV probably reaching three or four times as many households and CHDN wouldn't have to share flagship status with the Magna tracks. What's to "walk away" from? Their investment in TrackMedia is $400,000. Same question.


Why would Keeneland do this? As it is, they make much more money from their sales operation than they do from racing. The Keeneland botique meets enjoy top draw on TVG as it is. Why would that change if CHDN owned TVG?


I don't know why Keeneland invested in Turfway, somethng that they may be questioning themselves these days; and, as long as MEC owned 50% of HRTV, CHDN wouldn't control that anyway. (Assuming CHDN ontinued participating in the HRTV deal if they owned TVG.)

Your analysis assumes that Keeneland is in it for the money, they aren't.

jdl

[Valupix]

CHDN invested $1.5 million in the HRTV deal and has been losing money on that investment since. TVG has superior distribution to HRTV probably reaching three or four times as many households and CHDN wouldn't have to share flagship status with the Magna tracks. What's to "walk away" from? Their investment in TrackMedia is $400,000. Same question.


Why would Keeneland do this? As it is, they make much more money from their sales operation than they do from racing. The Keeneland botique meets enjoy top draw on TVG as it is. Why would that change if CHDN owned TVG?


I don't know why Keeneland invested in Turfway, somethng that they may be questioning themselves these days; and, as long as MEC owned 50% of HRTV, CHDN wouldn't control that anyway. (Assuming CHDN ontinued participating in the HRTV deal if they owned TVG.)

I was only speculating.

You don't "walk away" from something you own is my point. Maybe they sell their stake. Not sure anyone would want to buy it, but you don't just walk away as if it were nothing.

Keeneland is a non-profit organization. They bought Turfway with partners who are profit oriented. But Keenelands interest in the deal was for no other reason than to block Churchill from (at the time) owning every t-bred track in the state except Keeneland. They are not in it to turn significant profits. I'm only suggesting they would not be happy to see Churchill gain (virtual) control of both racing networks. Nor am I suggesting they would buy TVG, only that they might play a roll in who buys it. If not a minority stake themselves.

[Valupix]

Of course the thing that makes the most sense to me would be one of these off-shore or British based wagering entities. It would be a wonderful long term investment for the day they might are allowed integrate it into their existing operations.

Their is nothing to stop them from owning it and continuing to operate it as a U.S. based service to U.S. based customers.

[Valupix]

The Daily Racing Form might have interest in being involved with any new ownership group.

[rrbauer]

Your analysis assumes that Keeneland is in it for the money, they aren't.

jdl

Whatever that means. You have to lead the league in "mundane" posts on this board.

[rrbauer]

The Daily Racing Form might have interest in being involved with any new ownership group.

How about Bernake and Paulson? They have their fingers (and my grandkid's money) in just about everything these days.

[InsideThePylons-MW]

How can anybody buy TVG when horsemen groups have absolute control over whether they can make money or not?

The only group or individual that I could say should buy it is the horsemen groups.

[richrosa]

The Daily Racing Form might have interest in being involved with any new ownership group.

For the curious, what makes you think that?

[takeout]

How can anybody buy TVG when horsemen groups have absolute control over whether they can make money or not?
Good point. Kind of like exclusives in reverse. Looks like a little irony there.

[Valupix]

For the curious, what makes you think that?

I just seems logical.

[rrbauer]

http://www.courier-journal.com/article/20081123/BUSINESS/811230470/1037/rss0701

My "inside" connections at CDI are absolutely "mum" about this subject. I have to think that there is something imminent and that until it happens that lips are zipped up. Merge the TV production with HRTV and Twin Spires gets the ADW piece?

[framarco]

For far too many years, i have inquired as to what is preventing an end to the ridiculous dispuite between TVG and HRTV. Can anyone please provide any insight as to whether or not there will be a merger of these two entities? If not, who else would possibly be interested in buying TVG?

In any event, as a DirecTV subscriber, I have repeatedly inquired as to when DirecTV would add HRTV. They have never even offered a response to this inquiry. Could someone please explain why HRTV is being kept off of DirecTV?

[JustRalph]

In any event, as a DirecTV subscriber, I have repeatedly inquired as to when DirecTV would add HRTV. They have never even offered a response to this inquiry. Could someone please explain why HRTV is being kept off of DirecTV?

For a while there, Rupert Murdoch owned DirectTV. He also owned TVG under the TV Guide umbrella....or at least a portion of it......why put your competition on your Sat network?

[rrbauer]

For far too many years, i have inquired as to what is preventing an end to the ridiculous dispuite between TVG and HRTV. Can anyone please provide any insight as to whether or not there will be a merger of these two entities? If not, who else would possibly be interested in buying TVG?

In any event, as a DirecTV subscriber, I have repeatedly inquired as to when DirecTV would add HRTV. They have never even offered a response to this inquiry. Could someone please explain why HRTV is being kept off of DirecTV?

HRTV doesn't have enough money to buy lunch! How they managed to get on Dish Network is a mystery to me (TVG OTOH had connections via Fox and Murdoch that got them on DTV). I've asked DTV several times about HRTV and only got "canned" answers that really didn't address that particular issue.

[judd]

how much do you think they pay joann jones etc?

[Tom]

Too much.

[MikeDee]

TVG and HRTV are both available on the AT&T cable TV offering "Uverse" in their Sports package.

[cj]

TVG and HRTV are both available on the AT&T cable TV offering "Uverse" in their Sports package.

I switched from DishNet to Uverse last week. It is great.