http://paidcontent.org/2008/10/10/419-rbi-sale-at-risk-of-falling-through-as-bidding-price-drops-to-17-billio/ The economics of digital content Fri, 13 Dec 2013 18:54:38 +0000 hourly 1 http://wordpress.com/ http://paidcontent.org/2008/10/10/419-rbi-sale-at-risk-of-falling-through-as-bidding-price-drops-to-17-billio/#comment-64084 Wed, 15 Oct 2008 16:31:46 +0000 http://paidcontent.wp.gostage.it/2008/10/10/419-rbi-sale-at-risk-of-falling-through-as-bidding-price-drops-to-17-billio/#comment-64084 So doesn't anyone care about this deal? Amazing apathy towards a possible transaction that will fundamentally change the industry!

]]> http://paidcontent.org/2008/10/10/419-rbi-sale-at-risk-of-falling-through-as-bidding-price-drops-to-17-billio/#comment-64083 Wed, 15 Oct 2008 01:33:56 +0000 http://paidcontent.wp.gostage.it/2008/10/10/419-rbi-sale-at-risk-of-falling-through-as-bidding-price-drops-to-17-billio/#comment-64083 The value at $1.7B US is reasonable and shouldn't be discounted. It's a win-win for both Buyer and Seller. Buyer because it is a reasonable value for a profitable business and Seller because they are able to divest the burden as they shift their focus to their two remaining divisions. If a deal cannot get struck soon on the whole then Reed should break it up and sell off the primary assets at a premium value and would probably get close to a $1.0B-$1.3B US walk away. UBS should be sent home as the banker on this deal as they have added little value to making any deal work. Very poor performance probably due to being distracted about losing their jobs if UBS implodes like the other IBs.

]]> http://paidcontent.org/2008/10/10/419-rbi-sale-at-risk-of-falling-through-as-bidding-price-drops-to-17-billio/#comment-64082 Fri, 10 Oct 2008 19:20:35 +0000 http://paidcontent.wp.gostage.it/2008/10/10/419-rbi-sale-at-risk-of-falling-through-as-bidding-price-drops-to-17-billio/#comment-64082 Shave the price across the board by 40-50% and it is a deal. Reed should be happy to get anything given how they've neglected these businesses into near oblivion- great content, no digital, weak advertising and no vision for the future. It is the perfect time for a smart PE firm to negotiate down the price after somehow spooking out the other players through rumors on their available cash (ex: TPG is saddled with DLJ and Apollo is reigning in the near term leaving Bain as the victor…)

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