Shop At Home, Inc. (Nasdaq: SATH) shares shot up 16 percent Thursday morning after the company said it hired three investment banks to explore the possible sale of some or all of its television stations.
Shares in the interactive home-shopping retailer rose 1 1/4 to 8 15/16, still below their 52-week high of 30 1/8.
Shop At Home has retained Yagemann Advisors LLC, Banc of America Securities LLC and Media Venture Partners to help with the potential sale of some or all of the company's television stations. The sale of a significant stake in the company to a partner that could benefit from the Shop At Home's broadcast, Internet and electronic retailing capabilities may also be part of the plan to maximize shareholder value, the company said.
Recent changes to FCC ownership regulations allowing the ownership of more than one television station by a single entity in certain markets was the incentive for the new strategy. Shop At Home owns six television stations in San Francisco, Boston, Houston, Cleveland, Houston, Raleigh and Bridgeport, serving the New York DMA. The Board of Directors also expressed interest in exploring potential equity investments from strategic partners who can enhance or.
Shop At Home Network specializes in collectibles, and reaches over 54 million cable households. The company is working with Oracle Corp. (Nasdaq: ORC) and iXL Enterprises (Nasdaq: IIXL) to design and implement a new site, collectibles.com.
BancBoston Robertson Stephens broadcasting analyst William M. Meyers, reiterated his "buy" rating on Shop at Home Wednesday. Four out of 6 analysts covering the stock rate it a "strong buy" according to Zacks Investment Research.