Gannett’s higher bid lays waste to Tribune defense 16 May 2016 The owner of USA Today has upped to $490 mln its offer for the L.A. Times publisher. It’s a 99 pct premium and a better multiple than virtually all but the most outlandish recent newspaper deals have commanded. Stalling Tribune Chair Michael Ferro has little choice but to engage.
Wall Street makeover would miss the point 13 May 2016 Financiers, politicians and pollsters reckon the industry needs a glitzy PR campaign to combat the impression it’s dishonest. But such an operation could leave bankers with egg on their face. Breakingviews envisions an image consultant advising CEOs to stick with the basics.
Facebook better off liking title of top media firm 13 May 2016 The $340 bln social network denies skewing news to the left on its site, saying algorithms and rules minimize bias. Like all purveyors of stories, though, the company is finding points of view can’t be helped. It’s time CEO Mark Zuckerberg embraced his role as a media boss.
Quicken Loans may yet reroute U.S. lending justice 13 May 2016 Prosecutors say it knowingly broke rules on government-backed mortgages. The lender wants its day in court, calling the feds’ actions a “misuse of power.” The likes of Wells Fargo have settled rather than fight. Forcing the government to make a case at trial could change that.
Blockchain teamwork could help banks fight hackers 13 May 2016 An $81 mln central bank heist and a new attack on a commercial lender underscore the rise of cyber-related risks. The European Central Bank wants banks to log serious incidents. But industry collaboration - as seen with distributed ledgers - would do more to shore up defences.
Apple’s $1 billion plucks a strange fruit in China 13 May 2016 The tech giant says investing in car-hailing app Didi – whose Chinese name is “little orange” – will help it in the People’s Republic. Apple can afford to join a costly battle with rival Uber. But it’s less obvious how that will revive iPhone sales or clear regulatory hurdles.
Brazil tries new Olympic event: the fiscal dash 13 May 2016 Interim President Michel Temer has grabbed the baton from hapless Dilma Rousseff less than 90 days before the Rio games begin. That’s also roughly how long he may have to get fiscal reforms moving in Latin America’s No. 1 economy before political discord or scandal slow him down.
Trump tries morphing political fantasy into reality 12 May 2016 The White House hopeful had a kumbaya moment with GOP leaders. He has also dialed back some of his ideas on taxes, entitlements and U.S. debt. Broadening his appeal is key to wooing party elders, donors and voters. The biggest obstacle to the balancing act is Trump himself.
Tehran timidity says more about banks than Iran 12 May 2016 European lenders seem reluctant to follow U.S. Secretary of State John Kerry’s entreaties to do business in the republic. An avalanche of legal and practical banana skins hint at why. These could be surmountable - if bank bosses believe their systems are up to the job.
Bayer would risk choking on Monsanto 12 May 2016 The $94 bln German chemical giant may be mulling a bid for the U.S. seed maker. Monsanto, worth $39 bln, would need convincing. A deal pitched at a 30 pct premium is financially feasible, but Bayer would need to raise a lot of cash – and deal with clashing cultures.
Whiff of hedge-fund fear overpowers animal spirits 12 May 2016 Alpha-seekers assembled in Las Vegas for the annual industry SALT shindig sound mostly gloomy. That won’t change the minds of investors already inclined to push for lower fees after a run of poor returns. Omega’s Leon Cooperman did, however, offer some 46-year-old solace.
Dish short fund has investor appeal – at a price 12 May 2016 Kerrisdale Capital has raised $100 mln to bet that the value of Charlie Ergen’s $22 bln satellite-TV concern will plummet. The thesis is plausible and investors crave ideas that could pay off big. But one-stock funds are also “heads we win, tails you lose” setups for managers.
Brazil’s move to oust Rousseff sets tone for Latam 11 May 2016 The Senate is finally set to unseat the president, reflecting many Latin Americans’ disdain for corruption and leftist policies. A new leader, and neighbor Argentina’s reforming Macri, may offer a better model. But they need growth and political nous to achieve unpopular fixes.
Ultimate Fighting punches up value of live sports 11 May 2016 The U.S. promotion firm is reportedly seeking up to $4 bln for its mixed martial arts contests, with China’s Dalian Wanda viewed as a likely buyer. That seems high for a relative upstart in the world of pro athletics. But huge audiences for real-time events may justify the price.
Disney could use a double dose of cable magic 11 May 2016 The $170 bln media firm missed second-quarter profit expectations, as revenue growth stalled at networks ESPN and A&E. The twin disappointments highlight the need to figure out shifting TV-viewing habits. Add the search for a successor, and CEO Bob Iger’s job looks even tougher.
Staples-Office Depot flop leaves behind paper cuts 11 May 2016 The office supply chains have shredded a $6.3 bln merger after a judge called a halt amid worries about the impact on big customers. Squelched tie-ups like Sysco’s bid for US Foods portended the result. It’s a blow to the credibility of both sides.
Uber’s deal with U.S. drivers looks cheap 10 May 2016 Treated as employees rather than contractors, the ride-hailing service might have had to pay them as much as $730 mln more, according to court papers. That makes a $100 mln two-state settlement look like peanuts – another reason why the judge on the case might reject it.
Bud’s new name should be "Bahamas," not "America" 10 May 2016 AB InBev will call its iconic beer “America” through the end of U.S. elections in November. It’s a bold move from a brand facing heavy competitive pressure from popular craft brews. A tropical moniker would better reflect the Brazilian-run, Belgium-based conglomerate’s ownership.
Puerto Rico creditors making perfect enemy of good 10 May 2016 A bill to cut the U.S. territory’s $70 bln debt stalled amid fierce lobbying by bondholders that insist on full repayment. New but similar legislation offers a chance to get the island back on track. Though no one wants a haircut, a messy default could be far more costly.
U.S. watchdogs fiddle while fintech lenders burn 10 May 2016 The Treasury Department is the latest with ideas on regulating the likes of Prosper and SoFi. Studies are useful, but the alternative-lending industry is growing rapidly and, as Lending Club shows, starting to hit trouble. Effective supervision would help more than white papers.