cox communication inc (cci)
TRANSCRIPT
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Project- BBA-3106Section –B
Instructor: Rubaiyat ShaimomA presentation on
Cox Communications,Inc.
Group-02
Shanto-Mariam University of Creative Technology
No Name ID1. Mahamudul Hassan 131-401-097
2. Romana Akter 131-401-119
3. Hridoy 131-401-135
4. Aminul Islam 131-401-143
5. Ahad Rahaman 142-404-001
6. Aduri bari mukta 131-401-117
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Company Background
Establishment : 1898-1962 Cox Enterprise Inc (CEI) (Product was Newspaper)
CEI First entered cable television business in 1962.
Business partially spun off and form : Cox Communications,Inc in 1995.
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Problem Statement
Should Cox Communications (CCI) acquire Gannett Co? (Need to bid $2.7 billion to win through auction)
Assuming that the Gannett acquisition goes through, estimate Cox’s short-term and long-term funding needs. How much of each funding need must be met through external financing?
Issuing Common shares?Issuing Debt or Borrowing?Hybrid Security Issuance?Asset Sales?
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Financial Summary in millions of dollars.
Year 1996 1997 1998 99Q1 99Q2
Income Tax 23 54 883 144 352
Year 1996 1997 1998 99Q1 99Q2
Long-term debt 2824 3149 3920 3383 3587
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NPV
PBP
ETC
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Finding :
Cox Communications Inc should Purchase Gannett Co. for expanding business or capture market share on current rivalry and maintain the inflows and outflows of cash in a business (by Issuing Equity).
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This case focuses on how much external financing a firm needs and what securities the firm should issue to raise financing. Cox Communications is a major player in the cable industry, where they technological changes/capabilities upgraded and expand the business or acquisition through external financing.
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