DECEMBER 4, 2000
Forget the Wall Street Crash, watch EM.TV!
There are no details as to how much Kirch has paid to buy into the two companies but we understand that some of the EM.TV shares were acquired with shares in Kirch companies. It is unlikely that Bernie Ecclestone will have accepted shares and so it is safe to assume that he has now added another $1bn to the family fortune.
As part of the agreement Kirch has assumed a large amount of EM.TV debt.
The announcement leaves Haffa is control of EM.TV although his brother Florian resigned from the firm over the weekend, accepting that he has no credibility left with investors.
The announcement did nothing to help EM.TV shares on the Neuer Markt in Frankfurt. By lunchtime on Monday the share price had fallen 25% in two hours and in the early afternoon it dived below the 10 Euro ($8.5) mark, reducing the value of the EM.TV company to only $1.25bn.
The implication in all this is that the markets are not interested in the new deal and it looks like Thomas Haffa is going to have to depart before the share price recovers.