James Packer’s secret weapon for Ten – Harold and The Big Banana
In the excited coverage of James Packer’s move on Network Ten, there’s been a slight air of puzzlement.
What is it that makes it so attractive to Packer?
The answer, I submit, is the Big Banana factor.
The clues come in Harold Mitchell’s bio, which was published last year.
$40 isnt a lot
A fair point. Now amended to the slightly more substantial $40m…
Cheers,
Tim – Mumbrella
Bought Harolds book the other day. The hardcover version. For $2.95! It’s already remaindered so mustn’t be selling very well.
Tim,
Are you suggesting people in the Australian media industry take large financial decisions based on who their friends are?
Hi Glen,
Yes. Yes I am.
Cheers,
Tim – Mumbrella
You’d be happy as a mitchells client that your ad dollars are placed based on school girl like fueds “he said this about my mate and I walked out”, “he invited me to his party and so I’m going to invite him to mine, you’re not coming”
Ridiculous
and media companies pretend to be professional….
Carrob; i’d be surprised if U oicked it up for $2.95. Pray tell me, and I will go and pick up a quantity to give out to “youngies” starting out today; as it woul;d have to be the best “Industry and Life lesson” they would ever get.
And it would be a pleasure so to do.
Nice one Tim.
Media has always attracted moguls and entrepeneurs; and why not, the fundamentals are great; self-regulation (ie as little as possible), Government protection (e.g. sports anti-siphoning, limited number of broadcast licences), Politicians suck up to you, models everywhere etc etc…
To the question, is Mr Packer’s investment in Ten a bet on a company with an under-valued share price? Why has no-one considered the potential for all the casino/gambling related game shows that Ten could run (perhaps on a second digital channel) with all the web and telephone betting services… if Live Poker is classified as a “sport” by ACMA and added to the FTA’s Anti-Siphoning Sports list, you’ll know what the chat between Minister Conroy and Mr P behind the curtains at the ASTRA awards was about…
I can’t believe Mitchell was so stupid to reveal this – or is it hubris? And for years they professed their independence all the while owing Packer money – I wonder how many advertiser clients he disclosed this to at the time as he placed their money with 9 or ACP?
Nice work there Tim. The favour was somewhat repaid last week when Harold got a board seat on Crown Casino.
No ones mentioned the elephant in the room. The big fella got $32m into debt investing in things like the big banana.
And this is one of the greatest business men in Australia yeah?
@Tim – to suggest the principle reason or even a significant consideration in the decison to buy into 10 was that Mitchells would substantially increase their spend is I think pretty silly.
The potentail impact of one agency’s slight adjsutment of media budget would be trivial compared to the value that can be achieved by changing the content and management strategy of the network.
However , having made the decision to move on 10 – no doubt having run the wisdom of it by Harold – you can be sure JP would have quite rightly expected a jump in Mtchells clients budgets.
Hi Gezza,
I’m not suggesting at all that that’s the main reason for investing. But what I would argue is that by being a Packer, he has an immediate ability to unlock ad dollars that others would not. That makes it a better investment for him than it necessarily would for others.
Cheers,
Tim
Yes I picked ithe book in Perth for $5 about 6 months ago, and enjoyed the read
@anon You can pick up Harolds masterpiece for $2.95 at the bookshop, and I forget the name of the place, but it’s the bookshop on the Broadway side of that long tunnel that goes under central station and comes out on the Chalmers street side of central.
Banana? Does that mean James P will start eating healthier food?
So much for the big banana theory – even though it was fun at the time. Block the buyout more like.
Fat Harold (he’ll always be that to me) is a smoke screen.
His board seat and media influence has not bit of influence on the main game here. As heard at the Gym first hand from a JP confidant.
Jnrz Packer and Murdoch have long dreamt of a new billion dollar business enterprise that they could pioneer far from the paths of their fathers. One Tel was a clumsy first attempt.
What they are chasing the 10 control for, rests with a much greater global ambition, and one that could well make them more weAlthy than their dads.
Jamee knows television and gambliing.
Lachlans camp owns FoxSport and it’s Content.
Add into the mix of digital, And you have a burgeoning global virtual sports gambling business. And I am talking hi tech, where you can “line bet” on any aspect of any sports event. Next serve, in or out, next ball hit for 2 or 4, you name it. And delivered by the WWW to any digital device.
It will make casinos and tabs look like Gutenburgs printing press . Now wonder Jamee is out grinning and smoozing politicians.
Or maybe scientology told him to do it.
Watch this space.