Media & Entertainment

Apple stretches to take on Netflix, Amex, Disney

25 March 2019

It unveiled a dizzying array of new services aimed at disrupting sectors like media and finance. They range from the confusing to the mildly innovative. The $880 bln tech giant’s launches used to strike fear, but this time boss Tim Cook is paving a trail of mediocrity, not havoc.

Extra! Newspaper bidder flubs credit test

25 March 2019

MNG, owner of the Denver Post, is waving a “highly confident” financing letter from Oaktree to advance its hostile bid for publisher Gannett. Yet MNG isn’t clear if the debt specialist will even bother to lend it $1.7 bln. The tactic is as unconvincing as it is unconventional.

Naspers relocates its Tencent discount to Europe

25 March 2019

The Johannesburg group is shifting internet investments, including a $134 bln stake in the Chinese web giant, to an Amsterdam-listed unit. That might tempt investors wary of South African risks. But it does little to address fears that Naspers will squander its Tencent windfall.

New Fox bears hallmarks of the old fox

19 March 2019

Rupert Murdoch’s outfit is now trading as a news and sports company. With a fresh poison pill and former House Speaker Paul Ryan on the board, he’s entrenched himself and his political ties. A Disney stake gives him an additional media option. He’s still playing by his own rules.

Iliad’s dividend delivery looks precarious

19 March 2019

Xavier Niel’s embattled 5 bln euro telco slashed its closely-watched 2020 cash-flow target. Even the new, lower figure will be hard to hit if price wars persist in France. The takeaway is that Niel and his fellow investors will have to wait much longer for any hefty payouts.

Spotify pitches Apple lament to easy EU audience

14 March 2019

The Swedish music service filed a European Commission complaint alleging that its rival’s payments system hurts competition. It may take years, but the EU has pursued similar cases against the likes of Google. It’s also well timed given the growing backlash against U.S. Big Tech.

Korean pop music can dance past boy-band blues

13 March 2019

A prostitution scandal rocked hit group Big Bang and sparked a stock selloff for agencies in the $5 bln industry. It's a reminder of how tricky star-driven investments can be. As streaming services like Spotify help export K-pop, though, the companies can hit high notes again.

TIM shareholders should reject Bolloré board slate

12 March 2019

The Vivendi boss wants to replace five directors of the Italian telco’s board with his own. They don’t deserve to win, and the French mogul is already well represented. But the infighting needs to end. After the vote, TIM needs to appoint a new chairman who can unite both fronts.

Vodafone’s financial juggle papers over risks

8 March 2019

The telco is funding its 18 bln euro Liberty Global deal with a mixture of debt, derivatives, convertibles and hybrid bonds. It’s a neat way to avoid diluting shareholders when Vodafone’s shares are cheap. But the trick needs rating firms, and markets to play ball.

MTN’s Nigerian blessing may yet become a curse

7 March 2019

Africa’s biggest phone firm reckons revenues can grow faster than 10 percent annually. If fast-growing Nigeria can deliver, its $12 billion market value will rocket. Based on recent evidence, however, investors are right to curb their enthusiasm.

ProSieben’s battered shares transmit M&A signal

7 March 2019

The German broadcaster is valued at a discount of almost 30 pct to rivals despite generating decent cash flows. Italy’s Mediaset talks of creating a pan-European media giant, but there are few synergies. Cash-rich private equity might be more tempted given the breakup potential.

Disney’s CEO pay sequel outperforms the original

4 March 2019

It took a shareholder revolt last March, but the board has canned some $13 mln extra a year for Bob Iger after the Fox deal closes. Incentivizing executives for dealmaking is bad practice. Ditching it will mollify investors, even though Iger is still minting a fortune.

Daily Mail owner bucks poor media-governance trend

4 March 2019

Tycoons like the Bollorés, Lagarderes and Murdochs are often accused of mistreating minority shareholders. The Mail’s Rothermere family, though, is penalising itself through a spinoff. It’s a testament to strong UK rules and a sop to investors whose stakes have underperformed.

AT&T uncovers hidden costs of media deals

1 March 2019

HBO boss Richard Plepler is leaving not even a year after the telco acquired parent Time Warner for $85 bln. The “Game of Thrones” network is a jewel and Plepler is a talent magnet. People can be replaced. It just makes an expensive deal even more so.

WPP’s dysfunction discount is now too slim

1 March 2019

The 12 bln pound ad group’s results were hardly enough to merit a 7 percent rise in its shares. WPP’s miserable forecasts mean it merits a wide discount to French rival Publicis, which has better growth prospects. Investors are cutting new CEO Mark Read a lot of slack.

Universal Music auction could end on bum note

28 February 2019

Buyout group KKR and China’s Tencent may bid for part of Vivendi’s label, Reuters reports. On paper it’s the best way to gain exposure to fast-growing streaming. That means getting emerging market fans to pay for music. Investing alongside Vincent Bolloré also brings risks.

John Malone wins most in Europe’s telco M&A whirl

28 February 2019

The cable cowboy’s Liberty Global is selling another business, this time to Swiss group Sunrise for $6.3 bln. As in Germany, Malone gets a premium for a sub-scale operation. The benefits for the buyer from bundling mobile, TV and internet services may be competed away.

Oprah sits pretty as Weight Watchers loses badly

27 February 2019

The U.S. diet club’s shares plunged by a third after a flabby start to 2019, but celebrity shareholder Oprah Winfrey is riding to the rescue. Well she might – her investment in the company has already resulted in her more than quadrupling her money in three and a half years.

Now AT&T has to make its business case

26 February 2019

The U.S. telco won its legal battle, with an appeals court upholding the legality of the firm’s $85 bln acquisition of Time Warner. Clearing that hurdle is a relief for boss Randall Stephenson. Next up is persuading investors the deal and the huge related debt load make sense.

Review: Old news guard beats back the grim reaper

22 February 2019

Google and Facebook have nearly destroyed the media business – venerable institutions and digital upstarts alike. In “Merchants of Truth,” Jill Abramson effectively draws upon BuzzFeed, Vice, the Washington Post and the New York Times to show that subscribers are key to survival.