Spheria are likely pi$$ed due to SXL's anaemic returns. They...

Spheria are likely pi$$ed due to SXL's anaemic returns. They clearly believe the ARN merger was in their best interest, but ARNs returns and decade worth of negative capital growth aren't exactly worth writing home about either.

There is little, to no evidence a combined entity, potentially with greater leverage and stock dilution, is going to be any more successful for investors, despite the perceived or actual synergies.

Fact is, if you take the negative growth of these media stocks into account, they have been total dogs for medium-long term investors and funds alike.

I'd say (like me) there is an element of buyers remorse with Spheria. They possibly view a merger as being short term bullish on a combined entity MC, but my prediction is they will likely bail, along with other major holders in both companies, as soon as the deal is done the sp temporarily spikes on short term market optimism (if it eventuates) and before the inevitable "non-cash impairment of intangible assets” announcement. Once the big funds bail, retail will be left holding the baby as NPAT dries up, dividends shrink further and future CRs and insider stock issuances dilute away any further value.

Id love to see a positive future for both of these companies, but my gut feeling is that while revenue will no doubt continue to rise and the spruiking of online audio will be ramped up to 11, a decent return on equity simply won't materialise.

At least, in the medium term, a couple of Sydney 'characters' are guaranteed to make bank, regardless of outcome.

Please, someone - Tell me I'm wrong...