cox communication inc (cci)

Project- BBA-3106Section –B

Instructor: Rubaiyat ShaimomA presentation on

Cox Communications,Inc.

Group-02

Shanto-Mariam University of Creative Technology

No Name ID1. Mahamudul Hassan 131-401-097

2. Romana Akter 131-401-119

3. Hridoy 131-401-135

4. Aminul Islam 131-401-143

5. Ahad Rahaman 142-404-001

6. Aduri bari mukta 131-401-117

Company Background

Establishment : 1898-1962 Cox Enterprise Inc (CEI) (Product was Newspaper)

CEI First entered cable television business in 1962.

Business partially spun off and form : Cox Communications,Inc in 1995.

Problem Statement

Should Cox Communications (CCI) acquire Gannett Co? (Need to bid $2.7 billion to win through auction)

Assuming that the Gannett acquisition goes through, estimate Cox’s short-term and long-term funding needs. How much of each funding need must be met through external financing?

Issuing Common shares?Issuing Debt or Borrowing?Hybrid Security Issuance?Asset Sales?

Financial Summary in millions of dollars.

Year 1996 1997 1998 99Q1 99Q2

Income Tax 23 54 883 144 352

Year 1996 1997 1998 99Q1 99Q2

Long-term debt 2824 3149 3920 3383 3587

NPV

PBP

ETC

Finding :

Cox Communications Inc should Purchase Gannett Co. for expanding business or capture market share on current rivalry and maintain the inflows and outflows of cash in a business (by Issuing Equity).

This case focuses on how much external financing a firm needs and what securities the firm should issue to raise financing. Cox Communications is a major player in the cable industry, where they technological changes/capabilities upgraded and expand the business or acquisition through external financing.