Comcast schools AT&T on media M&A 26 Oct 2016 The cable giant now streams a third of its revenue from NBC Universal, a deal it concluded in early 2013. The regulatory and political climate was more accommodating and CEO Brian Roberts' strategy sound. AT&T's $85 bln bid for Time Warner, by contrast, is a dog's breakfast.
Apple demonstrates why it doesn’t need Time Warner 25 Oct 2016 The iPhone maker sniffed around, but never made a bid for, the media firm AT&T's buying. It would've been an alarming acknowledgement of a tough future in the maturing smartphone market. A decent new iPhone and rising service revenue are sufficient to forestall desperate M&A.
Under Armour succumbs to all-powerful fads 25 Oct 2016 The $13 bln athletic-wear maker's shares tumbled after it warned of slowing U.S. growth and are now down 60 pct this year. Rivals from Lululemon to Nike to Gap give consumers a dizzying array of similar choices. Under Armour is learning the hard way about fashion's fickle ways.
Cox: AT&T opens itself up to activist attack 25 Oct 2016 CEO Randall Stephenson is an old-fashioned empire builder cut from Jean-Marie Messier cloth. In an era of pushy investors, however, running roughshod over shareholders to play Hollywood mogul doesn't fly. There's a blueprint for challenging this terrible plan to buy Time Warner.
T-Mobile US tail wags dog of Time Warner deal 25 Oct 2016 The carrier's price war has won it customers and profit - but left Sprint in the red and in part prompted AT&T's $85 bln bid for the media giant and Verizon's M&A hunt. T-Mobile CEO John Legere may have more fight left in him, but ultimately will face the same pressure as rivals.
Could Trump TV be a business success? 25 Oct 2016 If the real estate mogul loses the U.S. presidential election, he may start an online venture tapping his base of supporters. A new Breakingviews calculator lets readers decide how many viewers he could attract and how much it might cost to see if it would make any money.
GM rides cruise control to top of auto cycle 25 Oct 2016 A strong third-quarter showing extended the smooth ride Detroit's top carmaker is having as U.S. sales peak. Ford's engine, meanwhile, is already sputtering. GM may even have a bit more gas in the tank. CEO Mary Barra, though, may find that the going will soon get tougher.
AT&T runs corporate finance into populist uprising 25 Oct 2016 The $85 bln acquisition of Time Warner would consolidate an industry already controlled by a small group. It's just the sort of concentrated power that gave rise to the likes of Donald Trump and Bernie Sanders. This deal, which both oppose, could become a symbol for the movement.
Free trade can survive its Wallonian wobble 25 Oct 2016 The tiny Belgian region is holding up a trade pact between Europe and Canada. That doesn’t mean such deals are impossible, though - they just need even more time and creative thinking. The messy process also undermines the notion that ordinary people have no say in globalisation.
AT&T’s media mega-deal is doomed sooner or later 24 Oct 2016 The $85 bln Time Warner takeover got off to an ominous start, trading 20 pct below the agreed price. Political backlash has begun and regulatory approval is uncertain. Even if AT&T clears those hurdles, all the buzzwords in the world won't save the muddled strategic logic.
Internet of Things gets wakeup call from fridge 24 Oct 2016 Twitter, PayPal and other major sites were knocked offline after hacked devices were used to overwhelm an important web-traffic hub. For Cisco, Google and others moving headlong into the networking of everyday objects, it's a clear warning about the many security risks involved.
Rockwell’s smart-jet hopes crash into reality 24 Oct 2016 Investors wiped up to 6 pct off the avionics supplier's stock after it agreed to pay $6.4 bln for seatmaker B/E Aerospace. Rockwell is betting the tie-up will win it a larger share of commercial airlines' digital transformation. The market for new planes, though, is stalling.
Online stockbroker deal merely delays inevitable 24 Oct 2016 TD Ameritrade's $4 bln purchase of Scottrade stacks up financially, thanks to cost cuts, a tax break and sale of a banking unit. Income and margins should rise, too. But it still leaves the firm, and rivals like Schwab, facing the twin dangers of index investing and robo advice.
HNA checks in to Hilton at a high-season premium 24 Oct 2016 China's free-spending hospitality giant is plunking down $6.5 bln for 25 pct of the hotelier from Blackstone. It's paying 15 pct more than market for the honor. The LBO firm triples its money in the deal. HNA at least gains a valuable, if pricey, seat at an important table.
AT&T goes Looney Tunes for Time Warner 22 Oct 2016 The U.S. telecom titan is paying $85 bln for the media conglomerate behind HBO, CNN and Bugs Bunny. Conventional financial analysis can't justify the whopping premium on offer. Instead, Time Warner shareholders benefit from AT&T's desperate search for a new business model.
Trump TV could be one of his more lucrative ideas 21 Oct 2016 Hints that the U.S. presidential candidate might start a media firm grow stronger by the day. A traditional cable channel is risky. But a Breakingviews analysis shows that by going online, nabbing 500,000 subscribers and keeping talent costs in check, the outfit could make money.
Reynolds will struggle to smoke out better deal 21 Oct 2016 BAT's $47 bln offer for 58 pct of the tobacco group is at 16 times EBITDA - more than Reynolds paid for Lorillard last year. BAT's big stake will deter rivals. Recent lackluster earnings and a new CEO may also filter Reynolds' ability to push a decent price noticeably higher.
Venezuela’s efforts to buy time grow ever costlier 20 Oct 2016 The government has suspended a recall referendum drive against hapless President Maduro even as it tries to entice creditors of ailing state oil firm PDVSA to accept a sweetened bond swap. The Bolivarian revolution's bid to perpetuate itself is exacting an unsustainable price.
Tobacco deal keeps Deutsche’s U.S. ambitions warm 21 Oct 2016 The German lender is advising BAT on its $47 bln bid for the bit of Reynolds American it doesn't own. With around $18 bln in debt needed, Deutsche Bank could play a big part. Mergers like this are one reason transatlantic investment banking is a tough habit to kick.
Coach tie-up with Burberry is too fashion forward 21 Oct 2016 Shares in the $7.9 billion British label rose after a report the U.S. bagmaker might bid. The two could go together nicely. As befits a luxury brand, though, there’s no bargain here. Even with synergies, Coach would have to pay prices that would make a fashionista blush.