Cable Legend Seeks Big Acquisition: Should You Invest?

Renowned media investor Leo Hindery has had a distinguished career, and it is not yet finished. Last year, Hindery started a special purpose acquisition company (or SPAC) buy and operate a business in the media or communications industry. SPAC from Hindery, called Trigone Acquisition (NYSE: TRNE), raised $ 261 million in an initial public offering last March. This money is now in Trine’s bank account to be deployed on a promising acquisition negotiated by Hindery and his team.

Who is Léo Hindery?

Whether Trine is a good investment will depend on the type of acquisition the management team negotiates for the shareholders. Therefore, the most crucial factor in judging Trine’s actions today is its management team. And its shareholders seem to be in very good hands with Hindery and his team.

Hindery is the founder of InterMedia Partners, a private equity firm specializing in investing in the media industry. He took a hiatus from InterMedia to become CEO of Tele-Communications, a large cable company, which he merged with AT&T in a $ 48 billion contract in 1999. He was then CEO of GlobalCenter, a major Internet service provider.

Image source: Getty Images.

In the early 2000s, Hindery became the first CEO of The YES Network, a regional sports network that is home to the New York Yankees (YES now belongs to Sinclair Broadcast).

Hindery returned to InterMedia in the mid-2000s and has been investing in InterMedia’s private equity fund ever since. For his many years of leadership at the head of major media organizations, Hindery was inducted into the Cable Industry Hall of Fame and was recognized as one of the 25 Most Influential Executives in the Cable Industry in the United States. over the past 25 years.

This unique combination of investment and sense of operations is ideal for acquiring and managing a new business from an entity like Trine Acquisition.

What Trine could acquire

There are many companies that Trine could potentially acquire, and Hindery has not given investors any explicit hints. But they can look to the companies he acquired as a private equity manager for an indication of what might interest him.

InterMedia website lists 10 companies, including well-known media brands such as Vice; Universal Sports (the sports arm of NBC Universal); Hemisphere Media Group, which owns several Latin American television networks, and Soul Train The media (yes, that Soul Train).

InterMedia has also invested in some lesser-known but equally interesting companies, including Magic Johnson’s Aspire, a cable channel that produces television and film entertainment; the Sportsman Channel, dedicated to hunting, fishing and shooting; and Thomas Nelson, a publisher and distributor of Christian books.

The diverse collection of assets acquired by InterMedia Partners contains real gems, reflecting Hindery’s strong network within the media industry.

Should we invest?

The success of Trine depends on what the company ends up acquiring, which is unknown at this point. However, equity investors Take comfort in knowing that media industry mogul Leo Hindery is right around the corner. He has invested in and led some of the most notable organizations in the media and telecommunications category. While there is always a chance that Trine would be stuck with a below average deal, I wouldn’t bet against him.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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About Colin Shumway

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