Professor Elam

Wednesday April 18, 2018

Yesterday I posted on the release of A  Quiet Place.'

I suggested that Aaron Gleason, the producer and star, might become the next Clint Eastwood. Both began in television and had success with low budget but popular films.

Well here is another candidate with the same formula. Byron Allen bought the Weather Channel for $300 M in cash.

Byron has been building his own media network. Turns out the big boys, that would be Comcast and Blackstone, bought the Weather Chanel in 2008 for more than ten times this amount, $3.5 B.  So we know Byron buys right.

The article relates that when the weather threatens, hurricanes, tornadoes, floods, this is the Super Bowl of TV. And it is on televisions in every civilian airport and boat marina in the world,though Byron does not have the digital side.

He bought the horror hit 47 Meters Down which grossed $44 M in 2017, one of the top independent films that year.

The more complete story is in today's WSJ.

Once again someone is buying at the right price where others do not see the potential.

His mother was a tour guide at NBC. This allowed him to view Johnny Carson in person. Eventually he became a comic guest on the Tonight Show. He bought Chappaquiddick for $4 M and it grossed $6.2 M the first weekend.

Here students is yet another example of managerial accounting successfully applied.