why is it so..., page-6

Pete,

If PBL is going to have some news, then it can only be one of 3 things:
1)
outsourcing the inside broadcast activities to TMS;
2)
a takeover proposition; or
3)
a tie-up with New Regency.

Trouble is:
1)
will only reduce costs by a factor of 10 -15% whilst substantially increasing TMS' cost base, and TMS cannot pay for the IB assets /take on the staff without a further, significant dilution of the current equity position;
2)
ignores the position involving TEN (and the fact that TEN does not want all of its IB and OS activities effectively controlled by PBL); and
3)
New Regency actually announced a deal recently with AVV (the other OS broadcaster which is trying to get its feet on the ground).

Within television land, it is more likely that each of TEN, NINE /PBL and SEV are up for sale (at the right price), as well as one or 2 of the regional networks.

To get back on the right side of things, TMS still has a very long way to go. The recent placements (raising $13.9m) go part of the way, but it will be interesting to see just how successful the Rights Issue is. The more successful that it is, then the more certain TMS' future.

If 100% successful, the Rights Issue will raise a further $12m (of which PBL and TEN will subscribe for their share). This may assure TMS of a further $3m, but not the remainder.