TVN's purchase of "n" gives investors the jitters

The news about the price surprised the market and the broadcaster's shares closed down 9.3% by the end of trade. "In strategic term this move is correct. Doubts concern the price, which contains a large premium which makes it controversial. These doubts were not cleared by the management board during a meeting with analysts," said Grzegorz Lityński, analyst with KBC Securities.

TVN assessed the value of "n" at zł.1.28 billion, while much larger Cyfrowy Polsat is valuated at zł.3.6 billion. "The investment means diversification of revenues for TVN, while along with the development of the platform - also the possibility of securing against changes in the situation on the advertising market," said Piotr Walter, president of TVN.

"n" has about 320,000 clients, while in Q1 its revenues stood at euro 15.96 million and negative EBITDA amounted to euro 10.16 million. (Rzeczpospolita, p. B9; Parkiet, pp. 1, 2-3, 10; Puls Biznesu, pp. 1, 32; Gazeta Wyborcza, p. 28) M.M.