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Aaron Gilmore has used his new blog to attempt a little utu on TV3 broadcaster MediaWorks.
This morning, Milford Asset Management principal Brian Gaynor said while recent financials were scarce, MediaWorks seemed to be doing well. But the - bar the costs associated with $700 million debt lumbered onto the broadcaster by Australian private equity company Ironbridge to finance its 2007 buyout of CanWest's 70% stake. Mr Gaynor sees the receivership as a positive. It leaves Ironbridge out in the cold, and reduces debt to a more manageable $100 million.
Not everyone puts private equity financial machinations at the heart of MediaWorks' problems, however - or has such a sunny outlook on its future.
While mentioning the debt, Mr Gilmore also sees "far too many expensive egos within the industry" - an apparent reference to John Campbell, whose show was among the first to highlight the ex-MP's allegedly boorish behaviour.
A piece by Campbell Live's Rebecca Wright on Mr Gilmore's lengthy CV (Inside the Mind of Aaron Gilmore) induced tears of laughter in Cactus Kate but was seen as "shrewish" by veteran media commentator Brian Edwards.
"It will be very interesting to see what survives this mess in a year or so," Mr Gilmore writes.
"Even with a right sized capital structure ie lower debt, more investors cash, the returns on equity from old style media are not high enough given risk and returns."
NBR staff
Mon, 17 Jun 2013
Mon, 17 Jun 2013
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Aaron Gilmore attempts a little utu on MediaWorks
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