Media & Entertainment

Podcast deals put new spin on sorry old tale

23 January 2020

Spotify is collecting podcast content in addition to distributing it. The New York Times may be after hit series “Serial.” Splashy deals validate both talented productions and wannabe radio show hosts. But like blogs, low barriers to entry threaten valuations across the board.

Netflix investors risk ruing streaming-stock binge

21 January 2020

Reed Hastings’ firm has little if any need for TV ratings, box-office sales or ads, unlike rivals. Shareholders focus on subscriber and revenue growth, fueling its stock-market success. But a slowdown in new users and an excessive, if declining, cash burn put that under threat.

Underdog will take home Japan’s casino jackpot

3 January 2020

Malaysia’s Genting is not the bookies' favourite as it competes for a coveted licence in the new market, worth $10 bln or more. But while it lacks Galaxy’s glitz or the scale of Las Vegas Sands, the betting group’s success in super strict Singapore will give it a winning edge.

Peak subscription economy approaches in 2020

23 December 2019

It’s not just streaming services from Disney and Apple that are competing for steadily paying subscribers. Online banks, wine sellers and even furniture retailers want them, too. Buyers can only spend and consume so much, though. For many vendors, the summit will be beyond reach.

Tencent is next in Western cross-hairs

20 December 2019

The WeChat app, indispensable to life and business in the People's Republic, is due unwanted foreign attention. Beijing uses the Tencent tool to influence and monitor users at home and abroad. Debate over restraining it will test democracies’ commitment to free information flow.

Disney will lose its magic touch

19 December 2019

The media giant’s valuation has soared on high hopes for its Netflix-like streaming service Disney+. While rivals have struggled, boss Bob Iger has seldom put a foot wrong. Expectations are now so high that meeting them will take a different sort of sorcery.

Beijing’s bet on Macau market might pay

19 December 2019

Worried by violent protests in Hong Kong, President Xi wants to turn the casino enclave into a rival finance hub. Scepticism is warranted, but an open capital account gives it an advantage over Shenzhen and Shanghai. If it plays a good reform hand, Macau could defy the odds.

Cineworld Canada deal has makings of a good sequel

16 December 2019

The UK cinema chain is buying Toronto-based Cineplex for $2.1 bln, its second deal in as many years. More debt-driven M&A looks scary after a dreary year at the box office. But the returns are reasonable, and the target’s high market share should limit the financial chills.

Italian dynasties swap roles as newspaper saviours

3 December 2019

Fiat scion John Elkann is mimicking Jeff Bezos and Marc Benioff in acquiring a struggling editorial trophy, La Repubblica-owner GEDI, from the De Benedettis. Whether Elkann, who part-owns The Economist, can revive GEDI is hard to say. But the billionaire has the resources to try.

Bolloré nears rare draw in messy Italian campaign

29 November 2019

Vivendi is to sell 20% of Mediaset, part of a broad truce with the Berlusconi-controlled broadcaster. The deal ends a wasteful legal row with little financial damage for Vivendi’s top investor Vincent Bolloré. Yet his larger Telecom Italia investment is still deep under water.

Chess “hybrid IPO” is less absurd than it sounds

22 November 2019

Ilya Merenzon, CEO of one of the game’s big broadcasters, may sell digital tokens that eventually convert to listed shares. Investors would get a discount but be stuck with a worthless asset if the planned IPO flops. Either way, World Chess’s profile gets a much-needed boost.

French lottery IPO may be as good as Macron gets

21 November 2019

Shares in La Française des Jeux popped 18% as the state-controlled group started trading. Winnings of $2 bln endorse President Emmanuel Macron’s privatisation push. But continuing protests and a national strike will hamper plans to sell more of the $20 bln Paris airport operator.

TikTok has escape route that Huawei lacks

18 November 2019

The Chinese-owned video app and its telecom compatriot are both under fire from U.S. lawmakers who fear political meddling. TikTok may have fewer allies to lobby on its behalf, but owner ByteDance could sell or spin its subsidiary off. Huawei, though, is in a long-term trap.

If only Viacom-CBS were fixable like Sonic’s teeth

14 November 2019

The U.S. media firms are worth a quarter less than when they agreed their $28 bln union, thanks partly to external competition and internal discord. Viacom rejigged its “Sonic the Hedgehog” movie because fans hated the hero’s fangs. In the real world such surgery isn’t an option.

Review: Everyone loses in “Laundromat” shell game

8 November 2019

Legalese rarely makes for a snappy screenplay. But Steven Soderbergh’s dark farce about the Panama Papers tries to do just that. It might not fully succeed, but kudos to the director for skewering the pretensions of today’s masters of the universe – including those in Hollywood.

Mike Bloomberg takes bold stand for plutocracy

8 November 2019

The billionaire media mogul is belatedly jumping into the U.S. presidential race. Despite his data-driven proclivities, it’s hard to see a clear path to victory. He also risks fanning anti-wealth flames, but his best bet may be to prevent rich from being a four-letter word.

Super Mario turbo-charges case for Sony breakup

29 October 2019

Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.

The Exchange: PBS CEO Paula Kerger

28 October 2019

Streaming is upending the media landscape, including public television. Its funding model, local structure and social mandate make broadcaster PBS unlike any other U.S outlet. Its longest-serving boss, Paula Kerger, discusses the challenges and possibilities of the new era.

Nokia misses yawning Huawei open goal

24 October 2019

The phone-kit maker’s shares dropped by a fifth as it slashed profit forecasts and cancelled its dividend. Increased competition for 5G networks suggests its Chinese rival is cutting prices. But if Nokia can’t cash in on Donald Trump’s anti-China push, the future looks grim.

Cable cowboy joins Swiss circular firing squad

22 October 2019

John Malone’s sale of his Alpine cable outfit UPC is off after an investor revolt at its suitor, Sunrise. The erstwhile buyer has to swallow a 50 mln euro exit charge and misses the chance to challenge peer Swisscom. The Liberty Global boss’s M&A halo gets a bit of a dent.