- 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.
For further details see:
Mediaset Requires Too Much Patience