This Legacy Media Giant Is An Intriguing Short

With pressures mounting, cheap might not be cheap enough.

Highlights:

• Legacy media companies have proven attractive shorts so far. Secular pressures suggest that trend will continue.

• At ~6x EBITDA, valuation seems reasonable, but operating deleverage can inflate that multiple in a hurry.

• From a risk/reward perspective, this looks like the best short trade in the sector.