Set a Minimum Sale Price After Audience Loss and Reinvestment

# Set a Minimum Sale Price After Audience Loss and Reinvestment A streaming business is considering selling The Analyst and using the opportunity to pursue Shark Bank. Before deciding, explain what information is needed to value the sale: the value of keeping the existing show, the audience that would be lost, and the contribution of the alternative investment. You then receive a revised scenario for the relevant two-year comparison. Keeping The Analyst contributes zero. Selling it causes the business to lose 1.5 million viewers, with an economic value of \$32 per lost viewer. The alternative show contributes \$22 million in total over the comparison period. Treat these quantities as comparable economic values and assume the \$22 million does not already subtract the lost-viewer value. Ignore taxes, transaction costs and discounting for the calculation. Find the minimum sale price that leaves the business no worse off than keeping the show. A buyer offers \$60 million: would you recommend selling under these assumptions? Explain how you would verify that the lost-viewer value and alternative-show contribution are not counted twice. The zero-value retention baseline is the revised scenario; do not substitute a profit estimate from a different scenario. ### What a Strong Answer Covers - A consistent keep-versus-sell comparison with audience loss and reinvestment value. - The break-even sale price and incremental value at the offered price. - Conditions under which the simplified recommendation could change, including rights, costs and uncertainty. ### Follow-up Questions - How would a nonzero value from keeping the show change the price floor? - What would change if the alternative-show profit already included the audience loss?