Just remember my position on Spark Sport existing is speculation. It seems that it has not worked out for them (again) and a logical conclusion could be that they want out...but they are yet to signal the exit. In the meantime they are still delivering the Women's RWC this year as well as their other commitments.
Even if they want out, there is a question around who would buy.
Unless and until they do exit, they are still a competitive threat to Sky and I can guarantee you sporting bodies will continue to try to exploit that. It is in their best interest that Spark Sport (or some other competitor) continues to exist.
So I don't think there really is a contradiction.
In terms of the future - all I can say is that it is a lot murkier now than when I bought into Sky first approx 5 years ago. Cash flow has been squeezed a lot, there are some big risks on the horizon with content deals and very hard to say how it will play out for Sky.
I don't see a scenario where Sky goes bust anytime soon, and they are an important part of the NZ media landscape I think. However, I think the company is more likely to get smaller over time than grow now. They certainly have not described a feasible growth story to shareholders - and the new STB definitely aint it.
If their one big idea for 'growth' was buying Mediaworks, then that is a worry.
SKT Price at posting:
$1.92 Sentiment: None Disclosure: Not Held
(20min delay)