re: Ann: Quickflix and Telstra enter BigPond ... Questions are...

re: Ann: Quickflix and Telstra enter BigPond ... Questions are ...

1. ...how are QFX going to pay for this Telstra Bigpond buyout as I understand they have little free cash. Expect the answer might be that there will have to be some V.large cap raise/dilutions coming in the pipeline to achieve this or are they to borrow. Anyone got any other idea's?

2. Why would bigpond sell ...I assume it is not profitable/ or not profitable enough for Telstra or they are likely to move to online downloads shortly and trying to hive off a possibly future redundant business?

3. Is the acquisition earnings accretive? Is the Bigpond DVD business cash flow +ive? If so how profitable. How long will it be before QFX sees a recoup of purchase costs.

4. What are the earnings forecasts for the combined business. When will the combined entity be cash flow +ive.?

I expect some will want to see some answers to these (and more questions) before they push the Buy button. Perhaps more info will be forthcoming in the Qtrly.

Note: All the above is in my opinion only do your own research to confirm.