How Much Will Sotheby’s Spend to Make Loeb Happy?

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May 5 (Bloomberg) -- John Chachas, managing partner at Methuselah Advisors, discusses the agreement reached by Sotheby’s and Dan Loeb’s Third Point on board appointees and offers his thoughts on M&A activity in the media industry on Bloomberg Television’s “Market Makers.”


Whether dissidents can get along with existing directors.

There is no board renovation happening.

Sotheby's wanted to bring in a couple of new directors.

You have a big board.

You have seen this kind of thing play out.

Can they all get along?

They are professional, smart people.

They know they are the stewards of lots of other people's money.

They will find a way to get along.

Whether the directors that are there on behalf of mr.

Loeb will get everything they want -- i doubt it.

I think in general, these kinds of things are good.

Are you saying the board is so big that nothing is going to get done?

At least all of these attacks and views are going to be kept in-house.

One of the greatest defenses of the company is when the stock price does well.

It is hard when activists make a lot of noise.

If the company does well, the stock price does well.

There's a better chance that sotheby's will find a way to keep it on the house.

I do not think -- it is probably good for bill ruppert.

Not everybody is going to get everything he wants.

Competition is a good thing.

The fight at sotheby's was about shareholder value and spending money it's not have spent.

Bringing three additional directors -- spending more.


It will cost the company more.

They get $50,000 a year in cash plus the expansion.

It does not come for free.

This is your specialty.

It is getting exciting.

What interests you most?

I would say that comcast, in some form happens and the combination spurs a serious other -- a series of other transactions.

You will have a large company that controls video, audio, internet and phone into the homes of the third of america.

Other people trying to have a share that consumer wallet have to look at the product offering and say, am i competitive?

We have entered the world where the single bundled package to the customer is a powerful thing.

It is powerful for whom?

I think al franken's criticisms about the degree to which comcast will have large market share -- it is not a national number.

The government will get that wrong.

It is local power.

When you have 60% or 70%in 10 of the top 20 markets.

Small programmers -- a tough environment.

You say it will spur big deals.

Like what?

One or both of the satellite companies pared.

I think you have to.

When you think about their story, it makes a sense that they would want to partner with verizon or at&t. dish is not better off combining with at&t? i do not know which is better.

It's a really good idea, given that comcast is everyday banging on your door, saying i can do all three.

I thought verizon's appetite for that kind of service was limited.

I do not know the depth of the business, but my understanding is that verizon was not going to aggressively roll that out.

I think fio's has been aggressive.

The people that have that love it.

May be verizon and at&t look at this landscape and say we have a wire in the home and we can compete with the cable company.

Maybe they conclude that they -- that that is not enough and therefore a $50 billion acquisition in the case of directv actually accelerates their strategy.

We will see.

It will be very interesting.

To the regulators know which buttons to push?

I do not think they have a clue.

These hearings are fascinating to watch.

In 1984, we broke up at&t. we have recruiter -- repackage them all.

The world goes through this churn.

Clicks where does that leave sprint and t-mobile?

That is an excellent question.

The likelihood of some kind of a transaction at the bottom of the cellular food chain has to look appetizing way think about how powerful the two guys are that are above them.

It will all this and changed again for sprint and t-mobile.

It is a tough environment.

>you get to these points in these industries where there are two or three people that are at the top of the industry with market power.

It is going to be interesting to see -- if sprint and t-mobile merged, who would get the big job?

I am not going there.

We will have to ask tomorrow.

This text has been automatically generated. It may not be 100% accurate.


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