Please the attached case study.
Read the case “British Satellite Broadcasting versus Sky Television.” Assume you are a
consultant to British Satellite Broadcasting in 1990 (ie: at the end of the case). Prepare a
write up advising your client what to do. The range of options might include: continue to
fight Sky, exit, or seek a merger with Sky.
Your recommendation will be based on the payoffs you think your client will make under
the different scenarios. When calculating the payoffs, make sure to detail any
assumptions you make with information from the case (no need for outside information).
Feel free to put these assumptions into an appendix.
Your recommendation will likely be based on both a quantitate analysis of payoffs as
well as qualitative descriptions of the advantages and disadvantages of British Satellite
Broadcasting compared to Sky Television.
Note that the payoffs under the merger scenario will depend on your assumptions about
the ownership split of the merged entity. Make sure to explain and justify your
assumption on the split. Consider whether there are moves that either company has made
to better position themselves when bargaining over the split.
The format should be Times New Roman 12 point font, 2 page single space or 4 page
double space. You can include an appendix with as many exhibits as you want (the
appendix does not count towards the page limit).