Newsat Circus Approaches Grand Finale


Our predictions of the demise of Newsat look conservative in retrospect. Stories emerged in the Ozzie press over the weekend of wild spending on questionable events and lavish compensation for the executives who have been creative with the facts. Investors are now speculating on what happens after liquidation. Newsat does not own usable spectrum assets, its teleport business shrank this year (Teleport businesses never seem to work for long) and it has a part-built satellite with a terminated contract which means that actually Lockheed Martin owns whatever has been built so far – which is probably not much beyond CDR.

So – is anyone motivated to cut a new deal with Measat to use the spectrum then pay Lockheed enough to finish building the satellite? Its a weird satellite design terminating capacity mainly in Australia – hardly the global centre of the web – so it’s a long shot. There is usually a buyer at some price, but this one will be low.

Your humble correspondent seems to have been on the money again. Watch this space for the next prediction…


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