Facebook sans Sandberg is more vision than company 1 Jun 2022 While the social network had problems under its departing COO, it at least had a business model and a top-tier executive who could sell it to investors. Amid slowing ad sales and co-founder Mark Zuckerberg’s pivot to the metaverse, Sheryl Sandberg’s exit comes at a poor time.
Tech giants pick odd time for ad break 1 Jun 2022 Netflix, Sony and others are mulling commercials in shows and games. Given how ad spending gets hit in a downturn, the timing looks curious unless it offsets hard-up consumers cancelling subscriptions. The big winners are the ad-tech firms like Trade Desk making it happen.
Snap! Elon Musk has another Twitter excuse 24 May 2022 The disappearing message app abruptly slashed its quarterly profit forecast, sending shares spiraling nearly 40%. That’s an ominous sign for Twitter, which like Snap, relies on brand advertisers. It also gives the Tesla boss another reason to bail on buying the social platform.
TikTok is eating Facebook from the inside 27 Apr 2022 Slowing revenue and barely-there user growth show Mark Zuckerberg’s social network is still losing ground to its video-app rival. The Russia-Ukraine war has turned TikTok into a news source too. Facebook owner Meta Platform’s best defense? Copy its rival as fast as it can.
Netflix with ads is worth the change of heart 25 Apr 2022 A rare drop in subscribers helped make co-founder Reed Hastings open to a cheaper advertising-supported package similar to HBO Max. If Netflix can reap the equivalent of Spotify's ad revenue, it could add nearly 40% to its worth. With shares cratering, every bit helps.
Nielsen activist stand is tough to deliver 19 Apr 2022 WindAcre's resistance to the $10 bln sale of the TV-ratings group pits it against buyer and more prominent agitator-investor Elliott. WindAcre is putting its money where its mouth is, but confusing tactics and a demand for an absurd payoff make its campaign look flaky.
Martin Sorrell’s latest S4 pitch falls flat 31 Mar 2022 The former WPP ad man says a last-minute delay to his digital media upstart’s accounts are not a cause for concern. A 40% share price drop suggests investors disagree. S4’s breakneck growth targets and quirky corporate governance leave it exposed to undershooting positive spin.
Capital Calls: Nielsen takes its reboot off air 30 Mar 2022 Concise views on global finance: The TV ratings firm accepted a $10 bln buyout offer days after rejecting a slightly lower bid. If retooling for the streaming era is possible, it will be easier in private.
How Mad Men are waking up to the metaverse 22 Mar 2022 The pandemic sped up the shift to online advertising and e-commerce. In this episode of The Exchange Mark Read, CEO of WPP, tells how his clients coped with Covid-19, why virtual reality is the next big thing for consumer giants, and why corporate purpose is more than a buzzword.
Trump’s Truth Social is an overvalued threat 25 Feb 2022 The former U.S. president launched his social media app after Twitter and others booted him from their platforms. Twitter’s slowing growth suggests he might be able to capture a unique following. But based on its users, its $20 bln market cap is at least double fair value.
Paramount’s streaming revamp is an uphill struggle 16 Feb 2022 ViacomCBS is rebranding to emphasize the media group’s Paramount+ service, which has 33 mln subscribers. Content costs are ballooning just as investors grow skittish about leader Netflix’s growth. A 20% share price drop on Wednesday widens the valuation gap with larger rivals.
Twitter share buyback is an odd way to take flight 10 Feb 2022 New CEO Parag Agrawal plans to repurchase $4 billion in stock. He will also spend more to improve tepid revenue growth. But tough competition and the $30 bln company’s slim slice of the ad market mean Agrawal could do with keeping more in the coffers to help him hit his targets.
Facebook’s future rests on Reels, not metaverse 9 Feb 2022 Mark Zuckerberg’s iffy bet on virtual reality cost Meta Platforms $10 bln last year. But the $600 bln social network has gotten higher returns for investors by improving on ideas that already exist. The best way to stop its decline is to copy its biggest competitor TikTok.
Facebook $250 bln slump punctures antitrust case 7 Feb 2022 That’s how much Mark Zuckerberg’s firm Meta Platforms lost in value after growth stalled. Competition from TikTok specifically is getting tough, but U.S. antitrust regulators who are fighting Facebook have said the Chinese-owned app isn’t a rival. The market begs to differ.
Google’s cloud is starting to make rain 1 Feb 2022 Beneath parent company Alphabet’s 32% jump in fourth-quarter revenue, losses at Google’s cloud businesses are shrinking. Investors have sent the shares down 7% this year, but they may be underestimating the shift from unprofitable challenger to established oligopolist.
Breakdown: Real profit and loss in the metaverse 28 Jan 2022 Mark Zuckerberg is on the case, and nascent virtual spaces like Decentraland could be the next social-networking hit. Breakingviews unpacks the metaverse, what it offers users and investors, and the risks.
Digital ad hogs leave room at the trough 11 Jan 2022 Google and Facebook dominate U.S. online advertising, but the overall pie is growing quickly. Even if the twin giants take their usual share, that leaves an additional $50 bln up for grabs, Breakingviews estimates. That’s an opportunity for the likes of Snap and Microsoft.
Ant will be best among China’s BAD bunch 23 Dec 2021 After a brutal year for tech, ByteDance, Ant and Didi will spearhead the sector’s recovery. A shaky ad market looms for the restructured TikTok owner, however, while the ride-hailing company faces rising driver costs. Jack Ma’s fintech outfit has the clearest path ahead.
Capital Calls: Fund services M&A, Mattress mystery 6 Dec 2021 Concise views on global finance: Shareholders of Amsterdam-listed Intertrust dodge a regulatory crackdown with a 1.8 bln euro sale; the western man credited with Chinese retailer DeRucci’s success finally has his identity revealed.
UK’s Facebook slap-down raises bar for US watchdog 1 Dec 2021 Britain’s antitrust body told the social media giant now named Meta to sell GIF maker Giphy. Its ruling hinges on a view of how the online ad market will evolve, not what it’s like now. CEO Mark Zuckerberg can appeal but the order still sets a punchy precedent for Big Tech deals.