Telewizjia Wisla Harvard Case Solution & Analysis

Telewizjia Wisla Case Study

Case Summary

Telewizjia Wisla (TVW) is a Polish media corporation established in late 1991 by Claire Hurley and Wojtek Szczebra, who is an American international finance specialist and a Polish ad hoc television broad caster and producer. In 1991, Government of Poland began functioning on personal private television license legislation. Owner of private television approached investors to invest capital in Media Company and started to lobbying commissioner for permission certificate and license in the subsequent year. In order to satisfy the Polish investment commitment from Realbud and Efekt, which was a production and  real estate firm of Poland, the committee requested,  TVW finally got a TV license of supra-regional in 1994 for Poland. Initially, fund was provided and invested by Polish investors; they replaced Szczerba by Roman Sztorc, who was a production engineer and Jarek Potasz, who was a print media specialist.

Problem statement

 In 1996, the company needed to raise additional capital of amount $7 million in order to successfully start business operations of a company, but neither Realbud nor Efekt were interested to invest additional capital in a TV station. Clarie and her business partner have to discover a considerable new co-worker in weeks and if they did not do it then, TVW would get defaulter and would not be able to repay it obligation and liabilities, and might drop its costly broadcasting license.


Because of Transition economies in Poland, it was a big challenge to start a media company; until both broadcast and print media had been controlled by the state. Public Television of Poland (TVP) was a monopoly of bureaucrats with a view to deliver drab content although; it treated advertisers and programming suppliers in a poor manner. At last, the Government of Poland passed legislation to permit individual operators to hold commercial and private radio stations for the time. This legislation provided the Radio Council and TV council, the accountability for controlling the activities of nationalized radio and television stations and rewarding new business licenses. The government planned to issue a number of licenses of TV and Radio station all over Poland as per the newly created law of media.

In response of newly created law, the council eventually received more than 80 registration applications for private television license; the majority filed applications by Polish companies looked for rights of local broadcaster. TVW was the only company that filed a registration form for a supra-regional license. TVW suggested that the council initially provided TVW with a wide regional authorization. TVW’s geographic attain could expand to broadcast the remaining region as further transmission location later became vacant. Additionally, to eliminate the direct competition and offering by the council to issue new licenses, Szczerba had retained business contacts and political culture in Krakow area, and beside areas of Krakow as it was densely populated with creative and ready to work at low cost.

In late 1994, TVW obtained its regional TV license to start operating in Poland; this was the only company besides Polsat which got a license of land-based television broadcasting with more than one million viewers. Under the terms and conditions of agreement of TV license both companies Polsat and TVW could utilize up to maximum 15% of air time promotions and advertising. Furthermore, they were also permitted to place and ion air ads during the programs, which would be more eye-catching than TVP. But, both companies had to retain at least 51% share of total owned by their original proprietor and foreign voting control was not exceeding to 33%. Right of approval of foreign investment was reserved by the council. Because of some technical issues, TVW was able to achieve 20% capacity.

Raising fund from foreign investors

Foreign companies of investment are not interested to invest in developing countries because of the following reason;

  • Not fully adaptive environment
  • Free market economy was not fully mature
  • Polish government did not support foreign investors because of unfamiliarity with  concepts of capitalism
  • Investors did not successfully use the market and economy of polish
  • TVW did not have practical experience of doing business and unique qualification that attracted foreign investors for investment in TVW.

Raising fund from Disney

Raising fund from Disney is one of the best options from the TVW’s point of view because;

  • Strong market share in Television industry
  • Worldwide famous program
  • Excellent expertise in the field of marketing and sales


Disney agreed to invest in TVW as per the following requirements;

  • Received 30% of voting share
  • A big chunk of  TVW’s annual profit
  • As per the governing provision of super-majority provision, Disney will have more rights as compared to the TVW
  • Disney will have an option to purchase more than 26% of voting control of company

     Initially the deal was done by both existing partners .............................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This


Save Up To




Register now and save up to 30%.