Instead of making good programs, raking in Advertising they want more of the Licence fee?
It appears, from published accounts, that TV3 was purchased at a very high multiple and the acquisition financed almost entirely through bank debt: €140 million is owed to Anglo Irish Bank and €160 million owed in mezzanine funding to Mellon Corporation, giving total bank debt of about €300 million. It is estimated the annual interest bill in 2007 would have been of the order of €30 million if all covenants were met.
Even if the entirety of licence fee funding for 2008 was given to TV3, it would still have potentially challenging levels of debt. The company and its investors accepted the original licence and the business risks, and the new investors have done likewise since 2006. The Irish television licence fee-payer is now being asked to contribute more to TV3 in this scenario.
It's the same evils as have beset eircom. TV3 has it easier than RTE. Less conditions on programs. More Adverts allowed. It could be profitable. Basically the Parasitical "so called" investors borrowed to buy and want the licence fee to pay their debts.
Leveraged buyouts and all similar funding for takeovers should be illegal. It's not "Investing", it's "Asset stripping".