Disney CEO Bob Iger has a lingering legacy problem 15 Mar 2024 The $205 bln company is trolling to replace its longstanding boss. Perhaps its someone in-house or an outsider brought in by a deal. But Tinseltown is skeptical he’ll leave. Iger may bat down activists in an upcoming vote. The best way to ink his legacy is by nudging the board.
AOL-Time Warner architect leaves useful blueprints 14 Mar 2024 Gerald Levin, dead at 84, will forever be linked to the $340 bln M&A disaster, but the strategy behind it was prescient. So was his work championing HBO and pay-TV. Other tech and media CEOs have done value-destructive deals using far weaker rationales, and more are in the works.
Capital Calls: Charter and Altice 27 Feb 2024 Concise views on global finance: Tying up Charter, the cable giant backed by the media mogul, with rival Altice USA would form the country’s largest broadband player. That isn’t worth bearing the burden of regulatory hurdles, Altice’s mountain of debt, or its over-rich valuation.
Warner Bros Discovery makes case against media M&A 23 Feb 2024 The HBO owner’s first full year since the merger of Warner and Discovery was a grim one. Boss David Zaslav lived up to cost-cut goals but missed nearly everywhere else. Even well-run deals can’t stem industry woes, making future tie-ups - with, say, Paramount - look ill-advised.
Disney board bake-off will burn Nelson Peltz 5 Feb 2024 The entertainment colossus is battling against the corporate cage rattler’s director nominees. His previous fight with P&G shows how he can win with a small stake and disparate shareholder base. But this latest contest includes other adversaries, making success less likely.
Capital Calls: Paramount takeover bid 31 Jan 2024 Concise views on global finance: Media mogul Byron Allen, whose company owns The Weather Channel, is offering to buy the TV and film conglomerate for $30 bln. Even if he doesn’t become the next owner, his presence should help get a sale process moving and plump up the price tag.
Capital Calls: Disney virtual reality 23 Jan 2024 Concise views on global finance: The $174 bln entertainment giant introduced a novel way for consumers to experience its brands through a partnership with Apple. Further connecting the dots between theme parks and the metaverse might bide Iger some time.
Disney’s Bob Iger falls flat by his own standards 18 Jan 2024 Activist Nelson Peltz wants the $166 bln media company’s shareholders to back his board slate. Iger’s defense as CEO is that Disney is on the right path by taking sports network ESPN direct to viewers and cutting streaming losses. Trouble is, progress looks slim on both measures.
Paramount suitors chase a Pyrrhic deal prize 11 Jan 2024 Warner Bros Discovery and David Ellison’s Skydance are weighing a deal for the media company. The former could reap $3 bln in savings while the latter would control the movie studio it already does business with. Either way, Paramount lumbers under debt and would be subscale.
T-Mobile’s climb to top dog risks winner’s curse 8 Jan 2024 The US telecom’s decade-long rise, sealed by 2020’s Sprint merger, has lapped rivals AT&T and Verizon and triggered an $8 bln payout for backer SoftBank. The tie-up threatened unshakable dominance. But now, newer cable entrants may wrench open the market much as T-Mobile did.
Disney’s angry mob risks doing more harm than good 3 Jan 2024 Boss Bob Iger struck a deal to secure support from Mason Morfit’s ValueAct ahead of a looming proxy fight with Nelson Peltz. Pushy fund Blackwells, meanwhile, has nominated its own directors. The mess is of Iger’s own making, but competing agendas further complicate his job.
Paramount casts itself in next season’s M&A hit 21 Dec 2023 By starting talks with potential acquirer Warner Bros Discovery, the Redstone family is effectively putting its $10 bln media empire in play. There are multiple ways to structure a deal, and many possible suitors. It’s just not clear debt-laden WBD is the best for the role.
Disney’s 2024 lifeline leads to Tim Cook 21 Dec 2023 Boss Bob Iger is seeking a partner for sports network ESPN. Tim Cook’s Apple would be a nice co-owner. The brands are aligned, the executives have a history with movie studio Pixar, and the iPhone maker is getting deeper into sports.
James Gorman makes a good sketch for a Disney CEO 30 Nov 2023 The outgoing Morgan Stanley boss is joining the Magic Kingdom’s board. He’s also not a bad blueprint of what Disney needs in a replacement for boss Bob Iger. The next CEO should be a specialist in solid shareholder returns, strategic pivots and bloodless succession planning.
Disney cost cuts enable Iger to mouse around 9 Nov 2023 The boss of the $155 bln entertainment company found $2 bln more to slash as he tries to fend off activist Nelson Peltz, who is seeking board seats. Disney+ narrowed its losses and nabbed more subscribers, too. But he’s skirting bigger decisions Disney needs beyond cuts.
Capital Calls: Paramount’s stricter streaming 3 Nov 2023 Concise views on global finance: The media stalwart’s shares popped 10% as boss Bob Bakish predicted that losses from its costly streaming push have topped out. But the company still faces a cutthroat market full of better-resourced rivals.
Disney nudges ESPN closer to break-up prime time 19 Oct 2023 The entertainment giant disclosed the finances of the sports network in which boss Bob Iger wants to sell a stake. At first glance, ESPN could be worth nearly $30 bln. The shape of any deal is up for grabs, but at least Disney shareholders have a clearer view of what they own.
Netflix’s future is gaming, not streaming 19 Oct 2023 The $155 bln company’s jump in subscribers helped revenue growth pick up pace. But tweaks to its business model will only get tougher with cash-rich rivals Apple and Amazon. Netflix’s shift to gaming is a better bet. Warner Bros Discovery shows it can be a golden goose.
Capital Calls: Starboard vs. Murdoch 16 Oct 2023 Concise views on global finance: The investment fund wants the publisher of the Wall Street Journal to spin off its real estate assets a year after another activist agitated for a similar move.
Disney has a weak hand in activist rematch 9 Oct 2023 The $152 bln media giant promised cost cuts to sate cage-rattler Nelson Peltz earlier this year. But that is slow-going and the stock has since fallen by a quarter while peers are up. Now the activist is back and wants a board seat. A weakened Disney’s best bet: invite him in.