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Finance: What is Control Value? 15 Views


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Description:

What is Control Value? When one investor or group owns a sufficiently large block of shares to constitute the ability to influence board voting or overall referendum voting on a company’s policy, that block of shares is said to possess `control value’, as its cumulative ability to affect decisions carries a tangible advantage over other common shares.

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Transcript

00:00

Finance allah shmoop what is control value dance on a

00:07

fifty shades thing Well there's a partnership a semi evil

00:10

one there was once a tv siri's It was exorbitantly

00:14

expensive to produce but everyone wanted to make it So

00:18

it ended up being made not by one studio but

00:22

by three viacom paramount disney and then news corp fox

00:27

Before it was disney news corp fox well each of

00:29

the three partners put in a third of the money

00:31

and split all the money distributions equally The problem on

00:35

the show ended up being hugely successful when it ran

00:38

for the first time on network tv so that was

00:41

great but now it's in reruns and because all three

00:43

competitors generally hate each other he's financially if their job

00:47

too none are willing to run the show a lot

00:50

on their cable network or broadcast network because then they

00:53

generate revenues for their hated competitors so they don't run

00:57

the tv series even though people want to see it

00:59

And this is a big fat bummer to the actors

01:01

writers and producers of the show who were banking on

01:05

rerun royalties to pay for their divorces if one of

01:08

the studios owned the siri's I'ii controlled it let's call

01:12

that siri's sunlight ing well then the siri's would heir

01:16

a ton more and presumably generate a ton more desperately

01:20

needed revenues What do you think divorce lawyers work for

01:23

free Well the control value of owning that asset then

01:27

is huge because if it were owned by one player

01:31

well then that player could run it again and again

01:33

and again and again on their network like think big

01:36

bang on tbs and then monetize that asset and massively

01:40

so there's Incremental control value with the well controlling a

01:45

property And yet it's not to be confused with remote

01:48

control value which is about a buck twenty five on 00:01:51.209 --> [endTime] ebay

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