Another blunder by SPH
SPH has decided to sell their 35% stake in Tom outdoor media back to Tom group at a loss. (Lee Ka Shing must be laughing at them)
Its another case of SPH desperately trying to do things to get into China market and diversify their business from shrinking Singapore media business. Unfortunately, they didn’t do their homework before buying. If it is so lucrative business, why would Lee Ka Shing, a shrewd businessman sell to you in the first place. Even, if you must buy, at least pay a low price.
But SPH still engrossed in their yesterday glory years, overpaid (like they did for other business they bought over the years) Now, their monopoly business is challenged by the internet, perhaps the best strategy is stop digging when you are in a hole. Return money to shareholders now before they disappear from these blunders.
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