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Stan Adds Value To Fairfax In Potential TPG Capital Takeover

Fairfax’s 50% share of video streaming service Stan is expected to play a major role in TPG Capital’s potential takeover of the media company.

CCZ Equities analyst Roger Coleman said in a note to clients that Stan could be worth over $1 billion by 2020, according to The Australian Financial Review.

Coleman also estimated that Stan currently contributes 40 cents to the share value of Fairfax’s joint-venture partner Nine. With its current share price of $1.25, Stan’s value to Nine is at around $352 million.

Nine is said to be interested in taking full control of Stan, but is not expected to pay a high price to acquire Fairfax’s half.

Most of the focus of TPG Capital’s interest in Fairfax has surrounded property site Domain, which analysts believe is worth up to $2 billion of the total $2.5 billion value of Fairfax. If a takeover goes ahead, TPG Capital is expected to split up Fairfax’s assets like Stan and its regional newspaper portfolio separately, and sell them to other private equity firms and media companies.

In the Australian streaming video race, Stan remains in second place to Netflix, but continues to perform strongly with over 700,000 current subscribers and content deals with AMC, Showtime and Amazon.

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