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Morgan Stanley Joins Future Of Stan Talk

The future of Nine-owned subscription streaming service, Stan, has reportedly attracted the attention of investment bank Morgan Stanley.

According to The Australian sources, one theory circling the market is that Nine is looking to sell down part of the business in the future.

Morgan Stanley analysts have reportedly estimated the value of Stan to be around $1 billion, inclusive of debt, with EBITDA forecast to potential notch around $80 million annually by 2023.

Reports suggest it could capitalise on growing demand for content streaming services exacerbated by the coronavirus crisis.

A sell down would also shield Nine from the growing threat of content services from production companies (e.g. Disney+ and CBS All Access).

Some commentators speculate whether Stan will be spun out of Nine in a similar fashion to Domain Group.

For fiscal year 2020, Stan generated EBITDA of $31 million, with revenue jumping 54% to $242 million.

The streaming service has been recognised for its suite of exclusive content, with around 2.2 million subscriptions (~18% market share).

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