Our large tech company is looking at 3 alternative acquisitions. These are the three selected along with their basic financial information.

1. AMC (American Movie Channel), a large cable movie channel, owned by AMC Networks. The channel offers programming to a substantial portion of TV households. One of their leading programs is The Walking Dead.

AMC is a national cable network reaching some 98 million households. It is a public company traded on NASDAQ and is currently trading for about $53. It gets its revenue from both carrier fees (cable subscriptions) and from advertising. Annual revenue is estimated at $2.7 billion dollars. Revenue and subscriptions are currently down about 5%

2. Roku. A manufacturer of online media devices

Roku, Inc. is a device company located in Los Gatos, California. They make a device that enables the consumer to access streaming video, hooking up into their TV sets. Their first product was made available in 2008. They are a public company traded on NASDAQ. Annual income in 2017 was an estimated $63 million.

3. Shondaland, An independent TV programming producer located in Los Angeles and responsible for a number of blockbuster prime time TV shows, the first being Greys Anatomy, then Scandal and more.

Founded in 2005, revenue is dependent on fixed costs in production contracts which can vary by type of show. Shondaland charges up to $5 million to create and produce each TV show in its stable. It currently has four major shows running on network. Total annual revenue is estimated at $100 million. Shonda is the only asset of the company.

Assignments

1. Rank each of the three potential companies as outlined below.

Revenue Potential	Cost to Acquire	Total Value to Tech.com
1	1	1
2	2	2
3	3	3

2. Now you will then write a short summary of how you came to rank each company as you did? What were the most important financial factors in your decision?

3. When you have finished comparing and evaluating what you know about each financially, you will look at the total industry for each potential acquisition. Your research of the industry should look at the financial stability of the industry itself and any other financial factor you think important. Your industry financial analyses should cover the industries of the three prospective acquisitions.