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Finance: What is Control Value? 15 Views
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Description:
What is Control Value? When one investor or group owns a sufficiently large block of shares to constitute the ability to influence board voting or overall referendum voting on a company’s policy, that block of shares is said to possess `control value’, as its cumulative ability to affect decisions carries a tangible advantage over other common shares.
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Transcript
- 00:00
Finance allah shmoop what is control value dance on a
- 00:07
fifty shades thing Well there's a partnership a semi evil
- 00:10
one there was once a tv siri's It was exorbitantly
- 00:14
expensive to produce but everyone wanted to make it So
- 00:18
it ended up being made not by one studio but
Full Transcript
- 00:22
by three viacom paramount disney and then news corp fox
- 00:27
Before it was disney news corp fox well each of
- 00:29
the three partners put in a third of the money
- 00:31
and split all the money distributions equally The problem on
- 00:35
the show ended up being hugely successful when it ran
- 00:38
for the first time on network tv so that was
- 00:41
great but now it's in reruns and because all three
- 00:43
competitors generally hate each other he's financially if their job
- 00:47
too none are willing to run the show a lot
- 00:50
on their cable network or broadcast network because then they
- 00:53
generate revenues for their hated competitors so they don't run
- 00:57
the tv series even though people want to see it
- 00:59
And this is a big fat bummer to the actors
- 01:01
writers and producers of the show who were banking on
- 01:05
rerun royalties to pay for their divorces if one of
- 01:08
the studios owned the siri's I'ii controlled it let's call
- 01:12
that siri's sunlight ing well then the siri's would heir
- 01:16
a ton more and presumably generate a ton more desperately
- 01:20
needed revenues What do you think divorce lawyers work for
- 01:23
free Well the control value of owning that asset then
- 01:27
is huge because if it were owned by one player
- 01:31
well then that player could run it again and again
- 01:33
and again and again on their network like think big
- 01:36
bang on tbs and then monetize that asset and massively
- 01:40
so there's Incremental control value with the well controlling a
- 01:45
property And yet it's not to be confused with remote
- 01:48
control value which is about a buck twenty five on 00:01:51.209 --> [endTime] ebay
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