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Sally Jones
Sally Jones
Articles (580) 

Mario Gabelli Media Savvy - Sinclair to Buy Fisher Communications

April 16, 2013 | About:

On the cusp of Sinclair Broadcast Group acquiring Fisher Communications Inc. (FSCI) for around $373 million (valued at $41 per share), remember when Mario Gabelli said FSCI was worth $40 when he bought it for $10?

Interviewed by Reuters, Gabelli said, “This is a major opportunity for Sinclair to move into two top-25 markets.” Gabelli has a 26.75% stake in Fisher Communications and is the company's largest shareholder. The acquisition will expand Sinclair’s reach in the western U.S., reaching more than a third of U.S. households. Sinclair Broadcast Group’s CEO David Smith said, "We are excited to acquire Fisher and expand our coverage westward, especially in the two key markets of Seattle and Portland.”

As of April 11, 2013, Gabelli, GAMCO Investors’ chairman and CEO, increased his position 0.47% with the TV, radio and Internet media company after a string of four reductions so far this year. As of his most recent trade at an average price of $41.09, Gabelli holds 1,852,94,4 shares. The current share price is $41.15, with a 0% change from average.

Fisher Communications is up 27% over the last 12 months. The company has a market cap of $361.2 million, with a P/E ratio of 27.5, a P/B ratio of 2.9 and a P/S of 2.17.

Gabelli is still the largest stakeholder in Fisher Communications, the media company that owns and operates over 13 full-power and seven low-power television stations in eight markets, and three radio stations. Its television and radio stations are located in Washington, Oregon, Idaho, California and Montana, conducting operations through two subsidiaries, Fisher Broadcasting Company and Fisher Media Services Company. Its online division network, Fisher Interactive, has 120 online sites. The company also owns and operates Fisher Plaza in Seattle.

Comparing three of Gabelli’s broadcasting picks, all are up over the last 12 months: Fisher Communications (FSCI) up 27%, Cablevision Systems Corp. (CVC) up 9% and DirecTV (DTV) up 13% over the last 12 months.

Gabelli’s Holding History:

Here's a look at Gabelli’s pay television holdings.

Gabelli’s Holding History with Cablevision Systems Corp. (CVC), up 9% over the last 12 months:

Gabelli’s Holding History with DirecTV (DTV), up 13% over the last 12 months:

Gabelli is considered a living legend investor. He is founder of GAMCO Investors Inc., a well-known diversified asset manager and financial services company. In a recent update, the GAMCO portfolio lists 792 stocks valued at $13.6 billion, with a quarter-over-quarter turnover of 6%.

Here’s a detailed analysis of GAMCO Investors (GBL).

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.5/5 (2 votes)


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