Page 8 - SCS May 2018 - Day 2 Tasks

CIMA MAY 2018 – STRATEGIC CASE STUDY

Reference Material – email from Chet Nolan

Email

To: Martine Andels, Director of Finance
From: Chet Nolan, CEO
Subject: Proposed takeover of Majik Media

I had an interesting conversation with Jeff Gilbert, CEO of Majik Media (MM) over the weekend.
As you probably know, Jeff and I play at the same golf club.

Although he could not be specific, Jeff suggested to me that MM is about to be approached
formally by HomeVideo in a proposed takeover deal. He indicated that the Board of MM were not
averse to the idea, as long as the offer represented a good deal for shareholders, but he did seem
to be of the opinion that he would rather a different buyer be making the bid.
This caused me to consider the possibility of Couchweb buying MM instead. The next meeting of
the Board is scheduled for tomorrow, and I want this topic added to the agenda.
I thought I should forewarn you, as I will look to you to have considerable input at the meeting.
Naturally, we will not be able to discuss a value until we decide to proceed; at this stage, we
simply need to discuss the strategic logic of such a deal, and the impact buying MM might have on
Couchweb.
I look forward to hearing your ideas at the meeting.

22 KAPLAN PUBLISHING