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.
UK media muddle is fresh turn-off for foreign cash 14 Mar 2024 Hurried Westminster amendments are set to block an Abu Dhabi-backed bid to buy the Telegraph. It’s OK to stop foreign states owning domestic media, and it may not even upend UAE relations. But making policy on the hoof so flagrantly offers a new reason to swerve UK assets.
Buyout shops take risky exit to bypass deal crash 14 Mar 2024 A lack of M&A and IPOs has left private equity portfolios with $3 trln of companies, many past their sell-by dates. As a result, firms are increasingly cashing out backers while keeping assets. There are guardrails on the structures now, but they could easily spin out of control.
Reddit Google searches ‘how to make money’ 12 Mar 2024 The social media firm’s rapid top-line growth suggests it’s attracting ad dollars. But Reddit’s reliance on search engines like Google to attract viewers is a risk. Roughly three-fourths of its new users come through search. Monetizing them keeps the platform on a cost treadmill.
Time continues to be on TikTok’s side 12 Mar 2024 A US bill that would force the social media app’s parent ByteDance to sell the platform is gaining ground. Demands are like those made years ago, only the app is now more powerful, the relationship with China more complicated, and politicians less willing to compromise.
This year’s Oscar winner is…Ozempic 8 Mar 2024 The weight loss drug and its peer Mounjaro will make more than one red-carpet appearance at the Academy Awards. Such free advertising has long helped luxury firms like LVMH and Hermes sustain high pricing power, margins and valuations. Now drugmakers are in on the act.
Taylor Swift is Thai economy’s antihero 6 Mar 2024 Singapore's exclusive deal to host the pop star's Southeast Asia concerts has irked its neighbours. Thailand, with the slowest post-pandemic recovery, is upset at missing out on the spoils. Those are debatable and in any event wouldn't shake off the $500 bln economy's malaise.
Nelson Peltz becomes gadfly to Disney’s flywheel 5 Mar 2024 A 130-plus page presentation makes a strong case for how and why the $210 bln company's boss Bob Iger didn't do his job. Activist Nelson Peltz’s ideas for fixing Disney are weaker. Still, CEOs run companies; board members keep tabs. In a smaller world, Peltz might win a seat.
EU’s $2 bln Apple bite is still more of a bark 4 Mar 2024 Brussels is fining the US giant more than expected for hurting streaming competition. That leaves $2.7 trln Apple open to similar cases. But as with other EU bids to rein in Big Tech, it hikes the cost of doing business more than it shakes up the sector.
European telcos’ new deal hopes face reality check 1 Mar 2024 Executives gathered in Barcelona this week to plead for lighter regulation, cheaper spectrum and some financial help. Policymakers are unlikely to agree. Deutsche Telekom, Telefónica and others will have to convince investors that future growth requires more investment today.
Disney gets second mouse role in Reliance show 29 Feb 2024 The duo are merging their Indian TV and streaming assets into a $8.5 bln joint venture. It's a welcome end to an unnecessary distraction for Disney boss Bob Iger. After forcing the US firm into missteps, Mukesh Ambani's Reliance is winning control of a powerful entity at a steal.
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.
Reddit loves users, so it’s giving itself a deal 26 Feb 2024 The social media firm plans to reserve IPO shares for loyal visitors, a tactic enlisted by the maker of Sam Adams beer and trading firm Robinhood. So-called “affinity programs” are risky, as Robinhood’s 2021 offering shows. But it may help Reddit get the valuation it wants.
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.
Reddit’s future looks bright through VR goggles 22 Feb 2024 The social media firm's IPO document shows narrowing losses and a fast-growing top line. But compared to competitors, a mooted $5 bln valuation should be a stretch. The upshot is founder Steve Huffman’s plan to sell data to train AI models. That has promise, in a virtual world.
Universal Music’s John Legend deal is harmonious 21 Feb 2024 The music giant is purchasing a more than 25% stake in Chord for $240 mln, gaining some control over the music with a sliver of its own money at risk. Importantly, Universal is buying Chord from KKR. Swapping tunes between sophisticated buyers legitimizes the business.
Gaming suitors have a window in which to pounce 13 Feb 2024 After a ropey 2022, the $180 bln sector grew less than 1% last year. Former stars like Ubisoft have been cutting staff, and their shares now look cheap. That gives perennial suitors who think gaming can recover – like Netflix, Disney and Saudi Arabia – a chance to bulk up.
Investors will say “OK Boomer” to aging Reddit 7 Feb 2024 The 19-year-old tech firm can justify a $5 bln IPO valuation based on a familiar but flawed revenue multiple. But as Snap shows, a lack of profit portends a shaky business model. Facebook parent Meta shows the benefits of listing on a stronger foundation. Reddit is no different.
Meta investors take wins now, forget about later 1 Feb 2024 The company is paying its first ever dividend just as politicians are on the warpath: a senator this week said CEO Mark Zuckerberg had blood on his hands. DC dysfunction protects investors for now. But safety issues dent its reputation, and political shifts will be a problem.
Apple’s AI absence may be its advantage 1 Feb 2024 Microsoft and Alphabet pepper quarterly results with the promise of artificial intelligence. The $2.9 trln Apple barely mentions it. The risk is a giant missed opportunity. But its gadgets may indirectly benefit, and without the ballooning capital expenditure at peers like Meta.