Agora Sa Overview

AGORA SA.

Poland Before & After 1989

Poland was a parliamentary republic with an estimated population of 38.1 million. Poland turned democratic in the year 1989 and since then it had trodden path of liberalizing its economy. With regards to Media in Poland, Media was centralized and supervised by Communist Party. The control of Media by the communist party led to the rise of illegal press in the suppressed countries. Poland's main opposition activist founded a trade union called "Solidarity" and laid the foundation for anti-communist social movement. After 1989, Solidarity led coalition government was formed which led to the transformation of Poland into a democracy. The democratic transformation of Poland restored the freedom of speech in the country. As far as the media market is concerned the market experienced the development of the Private media market and entry of foreign players. This also led to the emergence of the Radio and Television media.

Agora SA Overview

Agora SA. was founded by an underground Solidarity Press Agency. Agora SA also launched the first legal independent newspaper in soviet block. In 1993, Agora signed a deal with Cox Communications, Inc.. Cox purchased 20.7% of Agora's share capital which gave them a 12.5% voting rights. Cox Communications also agreed on no interference with Agora's editorial affairs. In the mid-1990's Agora started diversifying its activities and launched AC Radio and AC TV. Later in 1996, Agora Acquired 29% stake in a national talk Radio station named - TOK FM. Agora also expanded its Magazine business by buying 12 colored magazines from Proszynski i S-ka. Agora also diversified its media business into the Outdoor advertising by acquiring an outdoor advertising company named "Art Media Syndicate" (AMS). In early2005, Agora increased its stake in TOK FM to 66%.

Rywingate Scandal

Agora was not able to strengthen its TV advertising market because the state regulators did not plan to offer any new frequencies. Agora also tried to acquire POLSAT, Poland's leading commercial television station but faced stiff resistance from the Polish government. Along with the Sale of POLSAT, government of Poland started drafting amendments to media legislation. These amendments would restrict granting of nationwide licenses in radio and television to the nationwide newspaper publishers. To rlax the laws and get its way through the deal Agora paid a bribe of $17.5 million to Lew Rywin an influential film producer.

Agora's Growth

Agora went public in 1999 by listing on the London and Warsaw stock exchanges. Agora's IPO was ten times over-subscribed which generated $93 million of cash. By mid-2005, Agora's market capitalization was PLN 3.72 billion ($1.13 billion). Agora also announced dividend of PLN 0.05 per share to be paid annualy. It also accounted for 56% of the Warsaw Stock Exchange's WIG Media Index. Agora also started many incentives for the employees such as ESOPs, Healthcare services and continued education. During the second term of stock purchase plan in May 2004, over 3600 employees acquired