The Wall Street Journal is reporting today that Primedia, Channel One’s partner company, has hired the investment banking firm of Allen & Co. to find a buyer or partner for Channel One. (WSJ 2/21/02, p.B6)
Microsoft and McGraw-Hill have talked about partnering with Channel One but failed to reach an agreement.
Obligation’s Jim Metrock said, “Channel One isn’t worth buying for many reasons. First, after six years of following this company, I can say that I know of no school system in the state of Alabama that honors the Channel One contract. It’s a house of cards that may be coming down soon.
Channel One’s sick history of promoting violent entertainment and sleazy movies to children is matched only by their history of pushing junk food on a population of children suffering an obesity crisis. Channel One has violated their end of the contract so many times in so many ways (see article below) that future problems are assured.
One of the main reasons Channel One’s value will be greatly discounted is their payroll is being met mainly by one big “sugar daddy”, our federal government. If Congressional appropriators make a decision to remove military recruitment and ONDCP spots from the show, then Channel One is out of business within the week. What company would want to gamble with that situation?
Allen & Co. now must do their homework or they will mislead a buyer or partner. Allen & Co. can’t afford to sugarcoat this stinkbomb for a purchaser. Channel One is extremely controversial. It has been made more controversial by the present management of Jim Ritts, Jeff Ballabon and Morgan Wandell. The purchaser of Channel One will be buying a fire storm. A purchaser or partner for Channel One will be on the defensive immediately. There is little chance for good publicity buying into the concept of exploiting a captive audience of schoolchildren. It is going to be an interesting couple of months. Stay tuned.”
