Tvw Polish Tv Case Analysis Essay

1083 Words Jun 26th, 2013 5 Pages
Telewizja Wisla Case
Questions to answer
TVW was originally founded by Szczerba and his wife Balinska with their financial adviser Claire Hurley. The founding idea of TVW stemmed from a growing media viewership and a rebounding Polish economy. Prior to the formation of TVW, the media market was dominated by government owned Public Television Poland (TVP). In 1993, the government enacted legislation which enabled the commercialization of the television and radio station markets. This was the opening for TVW in securing its stake in the newly independent media arena. However, in order to establish itself as a valid player in this market, TVW was required to secure a broadcasting license from the newly formed TV and Radio Council of
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The options are the following: 1. Partnership with DBG Development Capital Eastern Europe 2. Strategic partnership with Bertelsmann 3. Resale of regional broadcasting license to Polsat or the like 4. Consider Polish Buyout (Strategic Buyout)
Partnership with DBG
DBG proposed to buy out the remaining stake from Efekt and reintroduce Szczerba as President of TVW. This would ensure Realbud as the minority shareholder in the company. By positioning the company with DBG under Szczerba, TVW would be able to reap the $4mm profit associated with capture the profits from the 4th quarter advertising. DBG also has a source of credible funds of $65mm from multinational investors.
Strategic Partnership with Bertelsmann
Bertelsmann, a German based media company saw many synergies with aligning with TVW. Their proposal included the purchase of 19,500 shares of Realbud for $2.5mm as well as funding the remaining equity required by TVW and providing additional channels for programming and sports to their network.
Resale of Regional Broadcasting License to Polsat or the Like
As TVW is in need of cash, another viable option would be to sell the regional broadcasting license to Polsat or another private media company looking for a channel to establish itself quickly in the Polish media market. The license could be priced at the future potential for TV ratings as well as the

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