Middle Eastern Investors To Launch $500 Million Fund Targeting Media Stocks

Many media stocks have been down in the dumps, but at least, there are some among us who still believe in them.

TheStreet.com reports that commercial real estate investment firm Blumberg Capital Partners is planning to launch its first fund to invest in U.S. media companies, and its investor base will consist of Middle East-based entities.

“The fund, for which CEO Philip Blumberg says there is interest amounting to at least $500 million, would target newspapers as well as Hollywood movie studios, online media outfits, broadcast news and possibly radio businesses. Including the use of leverage, the fund will have buying power of approximately $1.5 billion and could kick off by the second quarter next year, Blumberg says,” the article said.

The article added that "interest in U.S. media firms from the Middle East comes as foreign investors take advantage of a deflated U.S. dollar to buy into cash-strapped U.S. entities or firms that appear cheap."

Most of them, I believe, would be Internet-related companies. It's plain to see: Internet advertising is booming; there are less excessive regulations for the sector compared to traditional media; then, there are the Internet entrepreneurs have created profitable businesses and are extremely impatient for financial returns.