Satcast scaleback
Gallic group AB seeks sale of its subs to TPS
The company, chaired by Claude Berda, reportedly is negotiating for the Television Par Satellite (TPS) consortium to buy up its 22,000 subscribers, signaling the end of Berda's plans to become a digital platform operator in France.
According to Le Monde, TPS confirmed the talks, while Berda said the reports were "totally untrue." AB execs were not available for comment on Wednesday.
AB launched its digital platform, AB Sat, in late 1996 as a relatively cut-price alternative to TPS and Canal Plus' Canal Satellite digital offering. But competing against the financial muscle of the two heavyweights, AB Sat never really flew, lacking the cash to make itself known in a cluttered Gallic market.
Bourse backs off
Berda raised $185 million on New York's NASDAQ, with investors buying stock at $21. The price currently is languishing at around $3.50, and a planned flotation of Groupe AB on the Paris bourse has been put on the back burner.
It looks as though AB will concentrate its energies on turning out thematic channels for other platforms to carry. Seven AB channels are currently carried by Canal Satellite in what is called a "Decouverte" package. TPS has five AB services in its "Passion" package.
According to Le Monde, the value of AB's 22,000 subscribers is about $15.7 million. AB could also save some $7 million in transponder rental costs. In all, this would cover last year's $20 million losses.
At the same time, Berda is believed to be holding talks with Pathe chairman Jerome Seydoux over a possible sale of the AB Sports channel to Pathe.
AB Sports, which carries minority sports as well as a considerable amount of Latin American soccer and U.S.-based sporting events, would be majority controlled by Pathe, with Berda maintaining a minority stake.
Seydoux has repeatedly said he is interested in extending his stakes in thematic channels. AB Sports is carried exclusively by Canal Satellite, in which Pathe has a 20% stake.
