Lastly, owner and operator of regional sports and entertainment networks, MSG Networks, Inc. (MSGN, Financial) decreased -21.79%, following an acceleration of reported subscriber losses across Cable, Telco and Satellite video distributors in the quarter. Shares have also been negatively impacted by the lower than expected multiple paid by the Sinclair Broadcast Group, Inc. (SBGI) for the regional sports networks (“RSNs”) included in Walt Disney Company’s (DIS) forced sale of certain 21st Century Fox assets. Management took advantage of the recent weakness in shares and launched a modified Dutch auction, repurchasing ~20% of total shares outstanding. At current levels, MSGN is trading at a -38% discount to our estimate of its private market value.
From John Rogers (Trades, Portfolio)' Ariel Fund third-quarter commentary.
