Salma Mathlouthi
Business Seminar 690A

Case Study 21: Telewizja Wisla

Introduction
Claire Hurley and her business partner have acquired a supra-regional TV license for Belgium. Their company has gotten initial funding from Polish traders and today faces the tough challenge of raising yet another $7 million to finance the beginning of procedures of the TV station. Claire and her partner need to resolve questions regarding proper partners, company valuation, and deal structures.
Hurley, a 35-year-old U.S citizen with a background in International finance and economic development, had co-founded TVW in 1991, with Wojtek Szczerba, 41-year-old, a Polish freelance television producer living in London.

In late 1994, Szczerba, with Hurley’s help secured the only private regional television-broadcasting license for southern Poland. Soon thereafter Szczerba was ousted from an operating position at TVW by its major investors Realbud, a Polish construction firm and Efekt, a Krakow-based real-estate company. Since then, Roman Sztorc and Jarek Potasz had run the company. Sztorc a 56-year-old engineer had spent most of his career managing multi-million dollar construction projects for Realbud in the former Soviet Union and in Eastern bloc and Middle East countries. Sztorc delegated responsibility for TVW’s day-to-day operations to Potasz, whose abilities he trusted greatly. Potazc, a 33-year-old engineer, had managed several Polish print media concerns prior to working with TVW, and had held a senior position at Krakow newspaper a foreign media company acquired during his tenure. Although, Hurley who moved back to the U.S in late 1992, continued to work with Sztorc and Potasz to raise additional capital, she estimated that TVW still needed 18.5 million new Polish zloty to fund start-up operating losses and complete its infrastructure build out. Several