Media & Entertainment

Naspers takes first step to shrinking Tencent gap

18 September 2018

The South African group is valued at a hefty discount to its $120 bln stake in the Chinese internet giant. Floating its African TV unit should therefore provide some relief to frustrated investors. To unlock more value, though, Naspers may need to shed its remaining operations.

The Benioffs become Time’s Person of the Year

17 September 2018

The Salesforce co-CEO and his wife are buying the magazine from Meredith for $190 million. They join the likes of Jeff Bezos and Laurene Powell Jobs, who have swooped in to save struggling news outfits. The cachet of old-school media brands appeals even to newish tech riches.

Blackstone’s $5.5 bln bond inverts debt hierarchy

13 September 2018

Steve Schwarzman’s buyout firm is selling debt to fund its takeover of Thomson Reuters’ financial data arm. The terms allow the owners to pay themselves cash even in tough times. Such undemanding rules make these high-yield bonds look more like stock - but without the upside.

MTN can recover from its Nigerian nightmare

11 September 2018

A spat over its local subsidiary has knocked around $4 bln off the African phone giant’s market value. That implies MTN will lose the business that brings in a third of its EBITDA or pay a big chunk of the $10 bln the Nigerian government is demanding. Both outcomes seem unlikely.

Viacom has chance to pitch its own script

10 September 2018

The controlling Redstone family won’t be trying to reunite the media group with sister company CBS any time soon. New leadership, international expansion and an improved movie slate are aiding Viacom’s recovery. At $12 bln it’s cheap, too. It’s a tastier target than CBS.

CBS cancels melodrama in favor of steady series

10 September 2018

Boss Les Moonves is out amid new allegations of sexual assault. A truce between controlling owner Shari Redstone and the $21 bln media firm makes way for better checks and balances. CBS needs Moonves less than it needs a spell of normality – and that’s now within reach.

Iliad buyout could be a lucrative odyssey for Niel

7 September 2018

The French telecom group’s stock leapt 6 percent on talk that its controlling shareholder is considering a buyout. A bargain-basement valuation and relatively low debt make that a plausible idea. Xavier Niel could triple his money in five years unless a push into Italy is a flop.

CEO pay clawback is central to CBS board plotline

6 September 2018

Boss Les Moonves, currently under investigation for sexual harassment, may be negotiating an exit package. The $20 billion media group’s board could take back part of his golden parachute if he’s found to be culpable. It’s one way the directors can justify their presence.

Vivendi gives Elliott a taste of activist medicine

6 September 2018

Telecom Italia is turning into the U.S. fund’s worst big investment in Europe. Vivendi, which used to run the telco and is its biggest investor, blames Elliott’s boardroom overhaul for the share price slump. Such squabbles distract from the problem of competition from new rivals.

WPP’s new boss skips honeymoon period

4 September 2018

Mark Read unveiled bad news on profitability and froze the dividend on his second day in the job. The $20 bln ad group will have to invest more in technology and unify its sprawling divisions while cutting debt. He may be forced to cut payouts to shareholders in the coming year.

Review: Barry Cohen is a hedge-fund Frankenstein

31 August 2018

The protagonist of “Lake Success,” Gary Shteyngart’s new novel, comprises equal parts of financiers like Paul Singer, Howard Marks and Mike Novogratz. Running from a Valeant-like scandal, he hits the road through America’s heartland in search of his moral compass.

Review: Citigroup’s 2008 bailout won’t be its last

24 August 2018

That’s one conclusion to draw from “Borrowed Time,” a new book examining the troubled 200-year history of Citi. The $180 bln bank has suffered repeated failures of over-aggression and lack of foresight, while Uncle Sam’s wallet blocks meaningful reform, the authors argue.

Corbyn goes mainstream with UK tech tax idea

23 August 2018

The opposition Labour Party’s leader, Jeremy Corbyn, wants to tax tech giants like Google and Facebook to fund journalism. The normally radical politician is in line with European thinking. His proposed solution has flaws but a better designed subsidy would be worth considering.

Chinese news app IPO delivers hilarious feed

23 August 2018

Tencent-backed Qutoutiao, or "fun headlines", filed to go public in New York hours after raising money privately. The unprofitable outfit pays users to read, lacks important licenses to operate in China, and even rights to its name are shaky. The prospectus befits the business.

Britain’s Disney M&A ruling is a bit Mickey Mouse

16 August 2018

The Takeover Panel, generally a sound custodian of UK bid rules, is keeping the Magic Kingdom’s minimum buyout price for Sky at 14 pounds per share. Nudging it higher, in line with Disney’s Fox bid, would have set a better precedent for similar deals in the future.

WPP has least bad CEO at its fingertips

13 August 2018

The ad group has yet to replace Martin Sorrell four months after his exit. External candidates are proving hard to come by. Best to appoint de facto interim boss Mark Read on a permanent basis. He’s tech savvy and has insider knowledge that will help unify the sprawling business.

Tinder parent gives Facebook a dating lesson

10 August 2018

Owner Match Group said the swiping app will have more than $800 mln in revenue this year. Shares have tripled since its 2015 debut as it rakes in money from subscriptions. The successful model only highlights the shortcomings of the social network’s wannabe status.

China’s #MeToo momentum has broader benefits

10 August 2018

Allegations of sexual misconduct levelled at tech and media executives will inspire others to speak out. If more women confront bullies and bosses, a wider push for equal treatment could creep up the agenda too. That would be a welcome shift in China’s male-dominated boardrooms.

Collapsing deals point to tired M&A bull market

9 August 2018

Tribune and Rite Aid terminated plans to sell themselves after shareholders and regulators objected. Perceived double-dealing also played a role. But crummy transactions falling apart is to be expected from a late-stage of a merger cycle that has run its course.

Don’t expect tech giants to stifle Alex Jones

7 August 2018

Facebook, Apple, Alphabet et al have, after excessive vacillation, taken the hateful rantings of the Infowars founder off their platforms. As private companies, that’s their right. But until Jones is bankrupted for libel, he will have many other ways to spread his noxious bile.