MAY 3, 2001
EM.TV posts loss of $1.28bn
Thomas Haffa said that the company has now reduced its debt load from nearly $700m to just over $100m and is now planning to make a new start. EM.TV spent so much money in 2000 that the company needed to be rescued earlier this year by Kirch, which bought nearly half the EM.TV stake in Formula 1 and acquired 16.74% of the company as well.
The news of the loss sent the EM.TV shares plummeting by eight percent but they later recovered and increased in value. The stock is currently trading at much the same level as it has been for several months and there are still angry shareholders demanding compensation and ongoing investigations into the business.
Writing off the losses will clear the way for Haffa and Leo Kirch to use EM.TV as a vehicle for the flotation of Formula 1 if they choose to do so. Such a move would enable the car manufacturers to be allotted shares in the business.