CMFINC
04-14-2010, 03:51 PM
Malone Exit to Open DIRECTV Doors?
SkyREPORT
April 8, 2010 @ 1:00 AM
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What does Dr. John Malone's departure from the DIRECTV board mean to the company? Analyst Tom Eagan from Collins Stewart suggests it's likely more a positive than a negative. Says he, "The company will be more likely to issue a regular dividend. That plus the elimination of the dual-class share structure leads us to interpret the DTV recapitalization as a positive for DTV." It also could make the company more attractive to potential suitors ... which means that more speculation about a telcoTV takeover (AT&T, anyone?) will likely pop back into the news.
What will likely NOT happen, most observes agree, is for Malone to put his DIRECTV shares up for sale. For one thing, the good Doctor is notoriously adverse to paying taxes; for another, DIRECTV stock with a dividend attached could prove a nice bonus; and finally, an eventual sale to a well-heeled suitor could prove the best monetization strategy of all.
In related news, Wells Fargo maintained its 'Outperform" rating on DIRECTV yesterday, noting, "We view DTV as one of the least expensive stocks in the media/telecom space with the best rev. and EBITDA growth profile. Plus, there is ample cash to both invest in..."__________________
SkyREPORT
April 8, 2010 @ 1:00 AM
--------------------------------------------------------------------------------
What does Dr. John Malone's departure from the DIRECTV board mean to the company? Analyst Tom Eagan from Collins Stewart suggests it's likely more a positive than a negative. Says he, "The company will be more likely to issue a regular dividend. That plus the elimination of the dual-class share structure leads us to interpret the DTV recapitalization as a positive for DTV." It also could make the company more attractive to potential suitors ... which means that more speculation about a telcoTV takeover (AT&T, anyone?) will likely pop back into the news.
What will likely NOT happen, most observes agree, is for Malone to put his DIRECTV shares up for sale. For one thing, the good Doctor is notoriously adverse to paying taxes; for another, DIRECTV stock with a dividend attached could prove a nice bonus; and finally, an eventual sale to a well-heeled suitor could prove the best monetization strategy of all.
In related news, Wells Fargo maintained its 'Outperform" rating on DIRECTV yesterday, noting, "We view DTV as one of the least expensive stocks in the media/telecom space with the best rev. and EBITDA growth profile. Plus, there is ample cash to both invest in..."__________________