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Igor Kolomoyskiy: “1+1” will not work for Timoshenko, Yanukovich or Yushenko
August 26, 2009, Pravda
How much did you pay for 49% of 1+1?
I am now in a process of finalizing the deal, which assumes I invest $100 million into the general company, and give away my shares of TET, while CME should incorporate 100% shares of “1+1” and “Kino”, and this company will be divided into 51% and 49%.
Therefore if we do not count existing CME shares which I own, 1+1 shares cost me $100 million. I suppose today, considering the crisis, TET would be evaluated at a minimum of $100 million, and last year it could have been valued at $200 million. Youcan now realize the cost.
Then you paid approximately 200 million dollars for 1+1. Not too expensive, especially if we remember that not long ago shareholders wanted a billion for Inter.
Wait a minute! When Inter was valued at 1 billion, TET was 200 million, (laughing). So why was it [1+1] valued so low? You do read what people say about 1+1: Fuksman, Rodnyanskiy, and Profmedia have made statements. They proposed $300-400 million for 100% of 1+1. Hence, if we assume the upper level, we arrive at $200 million.
Would it have been easier to agree with Fuksman’s and Rodnyanskiy’s conditions, and buy the channel for half the price?
Not necessarily, since Fuksman and Rodnyanskiy wanted to exclude me entirely from the deal. They’ve taken from me a whole sum and refused to register the shares to me, saying that CME prohibited them to do so. If not for the agreement with Fuksman and Rodnyanskiy, today’s deal would not have happened – these are not two separate events. The purchase then and now should not be viewed as two separate deals.
Do you have ambitions to become the only owner of 1+1?
Well, only if CME should propose to me to buy their share – could it happen. However, I consider this unlikely, as it wouldn’t make too much sense for CME.If a public company does not own a blocking majority, it does not make any sense to own a minority stake, as it cannot consolidate the asset in its reporting.
So you never entertained the idea, or entered into such negotiations?
No. We have made an agreement, to which CME owns 51%, and we are now discussing principles of cooperation. How could I begin negotiations about their actual leaving the market? Or even think about it? If this was the case, I would have told them about my intentions immediately and openly. There is another question – why would I need that? Who would manage the channel? CME is a transnational television company, they have channels all over Europe. And who am I? A TV expert? I would not be able to manage the station on my own, I would have to hire someone. And why, if I know that CME are professionals?
Are you now involved in the operational management of the channel?
Not at all. There is no single man from my side associated with the channel.
They say that Tkachenko is your person?
In this light, we could make anyone Kolomoyskiy’s person. This reminds me of the film “New adventures of elusive”, where Buba Kastorskiy asked the secret service - do you even have your people in Buenos-Aires?
Can you talk about expected management changes in the channel when the deal is signed?
Simply, I will have no right to change management after the deal is signed. While I can suggest nominations and appointments right now – I am a member of the Supervisory Board. CME and I - are completely satisfied with Tkachenko. I actually try not to interfere within the channel’s business, since there are professionals for this. Adrian Sarbu is a big authority for me - he is a genuine professional.
Still, everybody knows that ratings are going down. From a business perspective -are you interested in replacing management who cannot improve this situation?
Ratings do not fall down within a day. As it happens, we are now facing the results of a strategy executed by Fuksman and Rodnyanskiy. When they realized they were exiting, they did everything to ruin the channel. Furthermore, Rodnyanskiy had a serious conflict of interest: he previously had been with CTC Media. CTC wanted to expand to Ukraine, so Rodnyanskiy did everything to make this easier for them. Rodnyanskiy negotiated with Lauder, proposed some joint projects, and explained his proposals with a supported argument, that 1+1 will fall down and it is impossible to avoid it.
We will see how things develop. Results of the new management will be obvious in the new season. We will analyze ratings, evaluate the work, and then decide how to progress.
Who will you nominate onto the Supervisory Board? There were rumors about Novikov?
I don’t know yet. However, I would hesitate on Novikov, since he is an executive ofa bank, how can he work here? I am not sure but time will tell.
If we can be open, it is difficult to believe that you are not going to position the channel on the upcoming elections?
What do you mean by that?
As an electoral resource. Like Inter for example…
Wait a minute. It is not fair to compare 1+1 and Inter. Inter is owned by concrete people, some people say half by Firtash, half by Horoshkovskiy, and others – by Horoshkovskiy only.
While 1+1 is owned by a public American company, and is managed under transparent rules, which correspond with corporate laws for public companies. These laws are exclusive for the whole world, including the USA. And nobody is joking there. As a member of the Supervisory Board, I have personally signed a document regarding what I am and what I am not allowed to do. Especially if I find there is something wrong with freedom of speech – I am obliged to inform everybody of such things and shout “Help!”. That’s why you cannot compare Inter and 1+1.
I do not have a right to call Tkachenko and ask “what did you put there” or “change this and that”. That’s impossible, you see?
Hypothetically, if I were to give instructions to Tkachenko, and he informs the Board of such influence, I could possibly end up in jail, in America.
You might not behave in such an impolite way, and Tkachenko may not call the Board, however this is about the President’s post, so the risk might be worth it?
First, Tkachenko is a sensible and rational person. Secondly, let’s consider – do I need to anticipate whether Tkachenko will make a call or not? Or maybe, I am going to become a president? What can be worth risking going to an American jail?
Your words sound rather magical in Ukrainian reality. From time to time even 1+1 is not unbiased.
This is a dilemma of Ukrainian journalism.– People think, that if the channel is not objective, this is because of the owners, not the journalists. We are not speaking about Inter right now – everything there is understood, and everyone has heard the well known speech in winter, when Firtash has come to “Svoboda”. [Freedom]
Unlike others, 1+1 must be objective, and if the smallest detail comes to air, it is not because the process is influenced by ownership, but because journalists allow themselves to assert their own ideas, and win-over somebody’s outlook, though they do not have to do so.
I would like to ask a question, which currently bothers politicians and journalists. They are afraid that during elections, 1+1 will work for Yulia Timoshenko. Can you guarantee this is not going to happen?
I can say that even if someone would like the channel to work for him, he wouldn’t manage to do this.
Not now, not later.
This is not only regarding Timoshenko, but this also relates to Yanukovich and Yushenko. This is im-pos-sib-le!
Even when I acquire these shares, I will have no authority to rule the channel – this will be done by CME. I currently don’t have any intention to leave CME, so I will still follow the documents I’ve signed.
Regarding 1+1, the structure does not allow the channel to be dishonest. This is a channel where civilized international standards work. Even if something seems subjective to you – this is a problem of journalists, your colleagues – their unprofessional behavior. This is impossible from an owner’s side.
http://www.pravda.com.ua/news/2009/8/25/100346.htm
For additional information, please contact:
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Central European Media Enterprises
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romana.wyllie@cme-net.com
