Gabelli duscusses Aereo US Supreme Court Decision (SSP, GCI, GHC, GTN, JRN, LIN, MEG, MDP, NFLX, NXST, SBGI, TRBAA)
Gabelli notes the US Supreme Court handed down its decision in ABC v. Aereo yesterday. For the broadcasters, they believe the decision should put to rest investor concerns regarding work-arounds by the broadcast networks and/or cable providers. They continue to favor the diversified names. GCI and JRN are trading at ~7x or less average 2014/2015 EBITDA. SSP trades at about 1.5 turns higher, but should capitalize on above-average increases in retransmission consent fees in 2014, 2015 and 2016. They think that today's decision helps cement the trajectory.