The Billsdue blog has made available for download a PDF of a detailed Goldman Sachs report on the recently listed Beijing Media Corp (BMC).
Goldman Sachs sees the following as BMC’s strengths:
(1) its focus on middle- to high-end consumers, which gives it pricing power;
(2) its network with advertising customers, which is larger than any of its competitors’ and allows it to expand its advertising volume swiftly;
(3) government support for its new ventures in the heavily regulated mediaindustry.
According to the report, these are the risks facing BMC:
(1) an over-reliance on property advertising;
(2) BMC’s proposed expansion into new media ventures, though it may be aided by government support and cross-selling opportunities;
(3) intense competition, though BMC enjoys a competitive edge due to its upscale demographics, advertising sales network, and favorable government endorsement;
(4) BMC’s seeming lack of editorial control, though we believe BMC’s revenue sharing with and its call option on BYD’s editorial content afford it indirect influence.
LINK:
Get the whole report on Billsdue here