They do have some cash reserves but would probably need to take on more debt in that instance, and/or sell assets.
In very basic and simplified financial terms, yes. A lower share price increases the buying power of potential investors, so it makes sense to buy towards the bottom of the market to maximise investment and potential growth.
There are a number of major issues in this case though that all feed into why the share price is so low right now. The obvious and incredibly expensive elephants in the room right now are the two lawsuits. The significant drop in share price is in directly response to the company potentially being on the hook for both contracts. No investors are going to want in on this until they are settled one way or another, with one exception: Kyle. If he bought into the company, at least half their legal problems would go away instantly.
The second big problem is revenue. ARN reported a decline in revenue of 10% in FY25 with K&JO, and now they are on their way out. Yes, they were very on the nose with advertisers, but without the two biggest names in the industry, ARN would be looking at even greater losses this financial year. Again, if Kyle bought in, those loses would be stemmed somewhat, but I would argue the value of the brand was in their partnership, not necessarily the individual parts. A positive of the breakup would be their enormous salaries come off the books, which presents significant savings. The problem is that may all be owed at once, leading to the third big issue.
As the article raises, the major concern is around the amount of debt owed by the company. There is currently a net debt of $64 million, and any payouts would certainly increase that further. New owners would become responsible for that, so that would need to be further factored into any deal.
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That makes sense.
Yes. Low share price is attractive / if you believe in the business.
Netflix when down 35% represents a good buy.
When ARN or Southeen Cross is down 35-55% - personally Iâd stay away.
That makes more sense. Weekly on GOLD, maybe weekend/Saturday mornings replaying his podcast interviews on FM.
Radio giant ARN axes staff amid legal battle and plummeting share price
It is understood that fewer than 10 roles in the companyâs promotions team and some designers have been cut.
It is understood the recent redundancies were already in play before the legal dispute.
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From the same column in The Australian that got it completely wrong last week and said Jackie wasnât going to sue ARN.
Sandilands and Henderson are both expected to front up in person to the Federal Court next week as they sue their former employer for more than $80m.
Wouldnât be surprised if she ended up appearing in court. I mean, gotta find those sweet dollars to pay for that mansion addition.
I donât think she will. There brief hearings are more about admin than case material and itâs very uncommon for anyone outside of lawyers to be present. Kyle showed up to his first hearing (and quite likely will next week as well) because he wants to be front and centre making a headline. Jackie on the other hand has been much more reclusive and I donât think sheâll want the spotlight on her during this.
Kyle Sandilands âopen to settlementâ as bitter ARN court battle looms
A source told news.com.au that Sandilands is eager to avoid a drawn-out trial and would consider a âreasonableâ offer.
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So he can hurry up and get on-air with a competitor network.
Which competitor will want to be bankrupted next?
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SCM? Oh wait⌠they donât need himâSeven Westâs assets are doing that job nicely.
Would there be anything stopping him from going on-air with another network whilst the trialâs still underway?
Probably the same clause that prevented Ben & Liam from starting Jan 19.
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Itâs a chicken or egg scenario here IMO.
If you poach Kyle, youâll poach an audience & potentially be close to, or at the top of the ratings.
But if there is a Sydney radio market with no Kyle or Jackie O, then itâs fair play for everybody.
I am beginning to think the second option is what all networks are banking on right now. Let the Sydney market decide who they want to become the new number one FM breakfast show.
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Part of his case is that heâs ready and able to return to KIIS and resume the show if ARN allow him to
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âDifficultâ: Big Sophie Monk problem emerges
Sophie Monk is a frontrunner to replace Jackie O Henderson at ARN.
Thereâs just one problem â she is not interested.
A source told news.com.au that ARN has approached Monk âthree timesâ since terminating Jackieâs contract, but so far, the seasoned star isnât biting.
But according to a source, Monk isnât jumping at the offer because ARN hasnât come up with a good enough co-host.
News.com.au has previously reported that Monk would consider heading back to radio, but she wants to do it with Kyle.
âWhen Kyle pops back up on air, I wouldnât be surprised if Sophie is the co-host. Sheâs fantastic, lovely with everyone, and very giving,â the source said.
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KIIS Syd/Mel has refreshed their music playlist from today.