AIOSF - Mediaset Requires Too Much Patience

• The stock of the two most important Mediaset subsidiaries, Mediaset Italia and Mediaset España, are trading near multi year lows.
• The two key markets for Mediaset, Italy and Spain, have been hit hard by COVID-19 and were already considered weak European economies before the pandemic. Advertising revenues are down significantly.
• Mediaset wants to execute on its Media For Europe transformation, but legal disputes between Vivendi, Mediaset's 2nd largest shareholder, and Mediaset itself are preventing progress.
• Things really can't get any worse for Mediaset, so the questions is not "if" things will get better, but rather "when" things will start to look up again.
• Although Mediaset Italy and Mediaset España stock are trading around book value, I'd recommend staying on the sideline. It may require too much patience to wait for the turnaround.

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