I note that as of 28 Feb Osmium were still selling down their...

I note that as of 28 Feb Osmium were still selling down their NZME position. Still a very large holder and maybe just freeing up some cash for something else.

Was thinking more about the possible SKY-NZME idea.

In terms of the two businesses coming together, I see the synergies and potential.

However I am just not sure how hey would get a deal over the line. Sky won't buy NZME as it would be too expensice (and I would not want them to use all their cash and borrow hundreds of millions of dollars to buy NZME).

So that leaves a merger by issuing Sky shares to NZME shareholders. If they went that way, they would most likely just use the curret market valuations as the basis of a merger.

But I am not sure that would get over the line with Sky shareholders as things stand.

Our current market cap does not appear to recognise that we have $130M+ in cash and no debt. It appears to be based on a conservative PE multiple that ignores the Balance Sheet.

NZME, on the other hand have stated a buyback program and just declared a dividend. All of which has pushed the SP up. So they are trading at much closer to 'fair value' than Sky.

Sky are about 6 months behind NZME in terms of returning capital to shareholders etc. So if they did a deal now based on market cap I think Sky shareholders are getting a raw deal.

UNLESS...Sky returned the cash to shareholders first (buyback or tax free capital return) and announced a dividend. That would push the SP beyond the $3/share level and then I think merger talks would have a better chance.