Redstones take media M&A to new channel 12 Dec 2016 Sumner and his daughter Shari have nixed their proposal to merge CBS and Viacom. The Murdochs' bid for Sky and AT&T's deal for Time Warner have ignited the industry's animal spirits. That has raised the prospect that reuniting the two media firms would rob CBS of a better offer.
Biotech double defenestrates independence hopes 12 Dec 2016 The CEO and CFO of $30 bln Alexion have both left immediately. That's bad enough by itself. But the departures come in the midst of an investigation into sales improprieties. That, and a lack of transparency from the company, leaves Alexion open to a takeover.
Murdoch’s Sky sequel shorter on political thrills 12 Dec 2016 Twenty-First Century Fox's 11 bln pound bid for the remaining 61 pct of Sky looks easier than its failed 2010 attempt. Media plurality is still an issue, but can be remedied. The deal will face political opposition, but the prospect of more post-Brexit investment should help.
Tillerson would take more bad than good to State 12 Dec 2016 The Exxon CEO's dealmaking means he's already a diplomat of sorts. So he would be fine with the basics of foreign affairs and Donald Trump's apparent "America-first" policy. But his ties to Vladimir Putin and his cronies would make him an inflammatory pick, even with Republicans.
Philips brightens private equity’s gloomy corner 12 Dec 2016 Apollo has bought the Dutch company's LED and car lighting business for $2 bln. That's 40 pct below a Chinese bid that American regulators blocked on security grounds. Buyout firms can't easily outbid cash-rich Eastern investors. At least they can sometimes pick up the crumbs.
Iran needs friends beyond Boeing 12 Dec 2016 The U.S. aircraft-maker's order for $16.6 bln of planes may force U.S. President-elect Donald Trump to choose between jobs and his tough stance on the Islamic Republic. Iran is in a weak position. It can help itself a bit, starting by rebuilding bridges with near neighbours.
The Murdochs’ new reach for Sky is well timed 9 Dec 2016 Twenty-First Century Fox has offered to buy the 61 pct of Sky it doesn't own at a 40 pct premium, valuing the European pay-TV group at 18.5 bln pounds. Given industry consolidation like AT&T's plan to buy Time Warner, Fox has a far better chance than in 2010 of doing the deal.
Michael Jordan scores a nominal win in China court 9 Dec 2016 The U.S. basketball legend and brand powerhouse has won the rights to his Chinese name in the mainland's highest court. It's a welcome victory for trademark owners, but it won't put more money in His Airness's pockets, or do much to deter other Chinese brand thieves.
Viewsroom: What’s at stake in Trump vs. China? 9 Dec 2016 The U.S. president-elect upended decades of diplomacy by taking a call from Taiwan's leader. But some U.S. companies will welcome his stance. And China has much to lose from any escalation. Also: Italy PM Renzi gets his marching orders. And there's no easy move to monetize chess.
Trump’s stock sales earn at best a “hold” rating 9 Dec 2016 He says he unloaded his portfolio to avoid conflicts of interest. The June decision also coincided with a cash crunch for his campaign, meaning it may have been a pair trade that paid off. Trump's commitment to ethics will be clearer if he divests his main business holdings.
Coke chairman-CEO split could inject new fizz 9 Dec 2016 Muhtar Kent will step down as chief executive of the $180 bln soda giant in May, but stay on as chairman. If history is any guide, his successor James Quincey may eventually hold both titles. Keeping the jobs separate might do more to revive Coke's lagging returns.
GfK will sorely test KKR’s market research magic 9 Dec 2016 A decade after turning around consumer research group Nielsen, the U.S. private equity group wants to buy into Germany's troubled GfK. The 44-percent premium it's offering minority investors means KKR will struggle to achieve the minimum returns that buyout firms usually expect.
China will show Trump more carrot than stick 9 Dec 2016 The People's Republic likes to test out new U.S. presidents. Its response to the TV tycoon’s early tantrums, however, hints at a more measured approach. China will try to avoid provoking Trump on currency and military issues, but take a harder line on investment and trade.
U.S. scandal is blot on China’s educational sector 9 Dec 2016 Shares of the $7 bln New Oriental have fallen 11 pct since Reuters reported allegations that staff helped applicants cheat to get into U.S. colleges. The claims are dismaying. But the financial fallout should be limited. Investing in Chinese education remains a first-class idea.
If only Facebook’s faux governance was fake news 8 Dec 2016 A lawsuit accuses director Marc Andreessen of being in cahoots with Mark Zuckerberg over a controversial new class of stock. Though Facebook's founder controls the company, the allegations suggest other shareholders are mostly disregarded. It hoists a red flag even higher.
Digital ad dominance has TV in crosshairs 8 Dec 2016 Google, Facebook and their ilk will as of next year control more of the $500 bln advertising market than broadcasters. Along with the rise of ad-free series from Netflix and Amazon, it'll push down the cost of TV commercials, leaving traditional program makers in a jam.
Lloyd Blankfein can afford to lose Gary Cohn 8 Dec 2016 The Goldman president and COO has been auditioning for a Trump administration job. He has been the CEO's right-hand man for years. But Blankfein is re-energized and the firm has a wealth of talent waiting for advancement. His key task is to make sure that remains the case.
Cox: Public company capitalism meets its match 8 Dec 2016 Donald Trump is challenging the ideals that have guided U.S. capital markets and corporate behavior for a generation. If it forces boards to reconsider the broader impact of their actions it may be a good thing. More likely, it will usher in an age of cronyism and quid pro quos.
China gets a good cop as Trump’s primary emissary 8 Dec 2016 The president-elect mollified Beijing with his ambassador pick. The selection of Iowa Governor Terry Branstad, who has personal connections with Xi Jinping, calms waters troubled by Trump's tough talk. As other hardliners are brought in, Branstad will need to pack a surfboard.
SoftBank’s U.S. swoop could net Symantec or Splunk 8 Dec 2016 The Japanese conglomerate is amassing a $100 bln war chest with Saudi backing, and is committing half that much to America. Masayoshi Son can make huge bets on emerging tech firms. Listed targets could include Symantec for cyber security, Splunk for big data, or even Twitter.