Clear Channel clash highlights LBO refinancing risk 27 Mar 2008 The US radio operator and its banks are fighting over the terms of $22bn of debt financing. The banks want to halve the maturity to three years. Clear Channel would rather sue than refinance so soon. But the easy terms of early 2007 probably won t be back in six years, either.
Global Radio shows tech blindness with GCap bid 5 Mar 2008 The acquisitive Global Radio is close to buying UK s largest commercial radio broadcaster, which is reeling from a bad industry and a foolish bet on digital radio. At £371m, Global is paying up. It might have done better to look to the technological future internet radio.
Weather Channel’s $5bn price tag is a conversation-starter 3 Jan 2008 The US climatology giant is asking for a lot more than it appears to be worth. But it may reap a windfall anyway. The Weather Channel is one of the last independent basic cable channels and runs the leading weather website. Its auction could attract a lot of interest.
Sky facing heavy price for ITV adventure 20 Dec 2007 BSkyB should cut its 17.9% stake in ITV to a maximum 7.5%, according to the Competition Commission. That would trigger a £200m loss for the UK broadcaster. Sky may consider this a price worth paying for blocking Virgin Media's bid for ITV. Besides, it is not giving up yet.
Cablevision no vote sets a good precedent 24 Oct 2007 The Dolan family s cheapo $22bn offer put investors in a pickle. They could reject the deal and see the value of their investment fall or accept it and set a precedent for future trammelling of minority shareholders rights. Investors should appreciate their accepting the latter form of selfflagellation.
BSkyB should get shot of ITV stake 2 Oct 2007 Now that Britain s competition regulator has said the stake in rival ITV restricts competition, Sky should sell it. Other remedies, like keeping the stake but losing its votes, are less palatable. What's more, Sky has achieved its main goal scuppering a merger of ITV and Virgin Media albeit at significant financial cost.
CBS shows up faster-growth sister Viacom 31 May 2007 Since their forced separation by Sumner Redstone, CBS has made four times more money for investors than Viacom. Now it also seems to be competing with its former parent. This further confirms Redstone s muddled strategy in breaking them apart.
Clear Channel imbroglio may lead to proxy battle 4 May 2007 The radio company's buyout is headed off the rails. Its directors, the buyout shops, and the founding Mays family all look bad. Clear Channel s directors really need to polish their image. In the wake of the deal, disgruntled investors may call for their heads.
CBS follows profit principle in DJ furore 13 Apr 2007 As Milton Friedman said, the primary responsibility of a corporation is to maximise profit. Firing shockjock Imus did just that. Indeed, CBS shareholders are $200m richer today than when Imus first taught nonAmerican listeners that nappy isn t just a diaper.
Stub equity could resolve Clear Channel impasse 28 Mar 2007 It has been mooted as a way to end the disagreement between buyers Bain and THLee and sellers Fidelity and Highfields. But it s not that simple. As the UK example has shown, shareholders don t like stub equity because they forfeit liquidity and influence.
TV digitisation a boon – for electronics firms 14 Mar 2007 The US will spend $1.5bn of taxpayer's money on coupons to subsidise purchases of digital converter boxes for TV antennae. This boondoggle will pay an administrator $100m to line the pockets of firms like LG, Thomson and Samsung.
LBO lenders court subprime-style meltdown 21 Feb 2007 Both types of lenders have chased every last dollar of business in the belief that the business cycle will never turn. Univision s LBO package is the latest to push the envelope. Its new debt multiple may set a record. But lenders may live to regret it.
XM-Sirius a boon for investors, bane for broadcasters 20 Feb 2007 XMSirius deal approval is likely. Their shareholders are the obvious winners. Contrary to popular wisdom, listeners will also benefit. But the merger will hurt radio broadcasters, pitting them against a stronger rival whose national reach will greatly appeal to advertisers.
Chavez may be running short of money 22 Jan 2007 Stiffing CANTV investors and diverting $8.7bn from the central bank suggests as much. Oil is down $13 from 2006 s average. But projected public spending is up 32%. Chavez s socialist revolution depends on heavy snow in the US Northeast.
Dolans still stingy with Cablevision buyout 12 Jan 2007 The family s sweetened $20.1bn bid to take the cable and media group private comes up short in nearly every respect. The 25% premium is misleading given cable stock rallies. And the valuation is low. The independent directors should just say no.
Sky makes bold spoiler swoop on ITV 17 Nov 2006 By buying a 18% stake for £940m, the Murdochcontrolled broadcaster has messed up plans by NTL and even RTL to acquire ITV. An NTL/ITV combination could have been a threat to Sky s increased dominance of UK TV. Now Sky can probably keep its main rivals divided.
Old fogies crawl over newspapers 13 Nov 2006 Hank Greenberg joins Jack Welch, Eli Broad and David Geffen. Only Sandy Weill is missing from the bunch. Do these former moguls see real value in the industry or are they just underemployed, overcapitalised and unable to operate a computer?
Time Warner should put flesh on its bones 27 Oct 2006 The media group s shares have rallied 25% since midAugust on hopes boss Parsons will unravel the conglomerate. That s kept the wolves at bay. To keep them there, Parsons should next week give details on cable and AOL spinoffs and succession.
Univision buyout could set new leverage record 15 May 2006 Mexico s Televisa needs US privateequity firms for its expected $12bn bid for the US Spanishlanguage broadcaster to succeed. It s the only way around US regulations. But it may need to lever up to 11 times ebitda or more to pay for it. That d be a record.
US cable threatened by the internet 11 Nov 2005 A recent deal between Yahoo and Tivo suggests it will not be long before TVs are regularly connected to the web, bypassing cable operators. Cable firms face a problem of maintaining their dominant position as distributors of home entertainment, their most lucrative business.