Chinese Nova

Czech-Chinese relations are at the freezing point, according to Václav Klaus Sr. He meant mainly the "mischief" of Senate Pres. Miloš Vystrčil in deciding to visit Taiwan, but the recent joint statement on 5G security by PM Andrej Babiš and U.S. Secretary of State Mike Pompeo indirectly targeting Huawei certainly doesn't help either. PPF, with its huge exposure on the mainland, has failed miserably in managing the Czech-Chinese relationship. Buying TV Nova was thought by some, including U.S. Senator Marco Rubio, to be a way for Petr Kellner to influence the narrative as China's proxy. Then came covid, and media revenues plummeted. CME was already expensive for Kellner at a price of $2.1bn, and now the U.S.-listed company's stock is selling for 20% below the per-share transaction value. If Kellner goes through with the acquisition without getting a substantial discount, it will be confirmation that it's more a Czech-Chinese political decision than a straight business one.