Continental Cablevision/ Fintelco Joint Venture( Case Study)

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Table of contents Executive Summary……………………………………………………………………..3 History of Continental Cablevision …………………………………………………. 4-5 International Expansion at Continental…………………………………………………5-6 Argentina………………………………………………………………………………6-7 Argentina’s Market…………………………………………………………………….7-8 History of Fintelco……………….. …………………………………………………….8-9 Joint Venture …………………………………………………………………….9-10 Case questions:………………………………………………………………………10-12 Bibliography………………………………………………………………………….14 Executive Summary: The Senior Management at Continental Cablevision was evaluating the terms of the final proposed agreement to establish a joint venture in Argentina. Fintelco was a leading television-cable operator in Buenos Aries owned by Samuel Liberman. Continental Cablevision team compromised of the following people: Ø CEO Amos Hostetter Ø Senior Vice President for Corporate and Legal Affairs Robert Sachs Ø CFO Nancy Hawthrone Ø Senior Vice President programming Robert Stengel Although the team believed that Continental would be the first US cable company to start dialogues with one of the major Argentine cable companies still the senior management wanted to reassess the risks and rewards with conducting business in Argentina. This had been a tough 6 months negotiation process with communication difficulties and numerous trips between Argentina and United States resulting in joint-venture structure that gave Continental a 50 percent equity stake in Fintelco for $80 million. Evaluation of the situation can be done with a little bit of research on the below mentioned topics: Ø History of Continental Cablevision Ø History of Fintelco Ø Market Ø Expansion Joint venture History of Continental Cablevision Inc Continental Cablevision was established in 1963 when 2 keen Harvester graduates Amos B. Hostter, Jr. and H. Irving Grousbeck who viewed the lack

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