Media & Entertainment

Berlusconi puts Bolloré in a corner at Mediaset

20 September 2019

The Italian tycoon has found a clever way to thwart his French rival’s attempts to kill Mediaset’s merger plan. Small fund Peninsula has agreed to put up the almost 1 bln euros needed to buy out Vivendi. The surprise move gives Berlusconi the upper hand in the ongoing struggle.

Digital viewers add cash to Bollywood’s glitz

19 September 2019

After two decades abroad, India's Oscars swept into Mumbai this week. It's a timely homecoming for the world's busiest film industry. Box office receipts are booming and the sale of rights to Amazon, Netflix and others have helped earnings too. Everyone is winning, for now.

Telco M&A gets rare regulatory boost in Brazil

16 September 2019

The country may treat operators including Oi, which is in bankruptcy protection, with a lighter touch. That gives local units of Telefonica and Telecom Italia reason to pounce. Official support for M&A is a welcome relief from the constraints facing their European parents.

Berlusconi and Bolloré vie for media booby prize

2 September 2019

The billionaires are fighting over Italy’s $4 bln Mediaset. Giant egos preclude the friends-turned-foes from joining forces to revive the broadcaster’s dwindling fortunes. While they feud, Amazon and Netflix are capturing the growth in European video consumption.

Bernie Sanders grasps wrong half of media problem

27 August 2019

Everyone knows the news industry is in trouble. But the U.S. Democratic presidential candidate’s proposed solutions – blocking M&A and taxing Silicon Valley – won’t revive a fading sector. The best chance of survival lies with rich patrons like Jeff Bezos and nonprofit models.

John Malone’s Swiss sale still faces interference

22 August 2019

Sunrise wants to gee up support for its $6.3 bln purchase of Alpine assets held by the “cable cowboy”. Yet new, higher synergy estimates lack credibility without explanation, and big shareholder Freenet rightly panned the price. CEO Olaf Swantee still has a fight on his hands.

Tencent rings a minor note on its content dreams

14 August 2019

Quarterly adjusted earnings rose 19% to $3 bln but music and movies disappointed. It raises a cloud over Pony Ma's plans to buy a stake in Universal Music, and the broader scope of his entertainment ambitions. Instead of more scale, Tencent needs to convince Chinese users to pay.

The Exchange: Nile Rodgers and Merck Mercuriadis

13 August 2019

How much is a song worth? Two people who should know are the Chic founder and his manager, who have started a company to buy some of the world’s most famous back catalogues. They explain how music investing works and why many songwriters are miffed with Spotify.

Newspaper deal stretches limits of revival

9 August 2019

A $1.4 bln sale of Gannett to a rival will create the largest U.S. chain. Yet a whopping $300 mln in cost savings, along with nearly $2 bln in debt, will take a toll on local news. At least investors will get a say if the merge-and-cut strategy is still useful.

Movie theatres get unfair billing from investors

8 August 2019

London-listed Cineworld and Chinese-owned AMC Entertainment have suffered from a dreary 2019 box office. That should change as likely blockbusters “Lion King” and “Frozen 2” hit screens. If new movie subscription offers catch on, theatres’ will shrug off their B-list valuations.

Top Trump beneficiary gets it from the other end

7 August 2019

Few stocks have surfed the president’s term like the New York Times. Far from “failing,” the publisher tripled in value and is nearly halfway towards its 2025 goal of 10 mln total subscribers. But as Q2 results show, dopey headlines are less of a threat than Trump’s exit.

European TV M&A belongs on the cutting-room floor

7 August 2019

Broadcasters like Italy’s $3.5 bln Mediaset are pushing for cross-border deals as the sector loses viewers to Netflix and advertisers to Google and Facebook. M&A is not the answer: most TV costs are local, meaning few savings, while the added complexity may be counterproductive.

Disney, Netflix similarities diverge at ambition

6 August 2019

The Magic Kingdom’s stock is near an all-time high as the $250 bln media firm readies its streaming video service. Disney has the content and brand to be a strong Netflix rival as their paths converge. But unlike Reed Hastings’ company, cord cutters will test investor patience.

Bolloré hits right note to mute Vivendi doubters

6 August 2019

The French tycoon may sell 10% of Universal to China’s Tencent at a price that values the music label at 30 billion euros. Sceptics who feared a deal wouldn’t happen this year will be silenced. But more selloffs are required to erase Vivendi’s persistent conglomerate discount.

Telecom Italia’s fixed woes creates M&A imperative

2 August 2019

The Italian telco is losing market share at its key retail fixed-line business despite a push to replace old copper lines with broadband. The rise of fiber-only network player Open Fiber poses a further threat. A plan to team up with the rival is assuming existential importance.

Father of Indian TV muddies deal transmission

1 August 2019

Subhash Chandra is selling 11% of Zee Entertainment to Invesco to pay down debt. The transaction values the top broadcaster at $5.6 bln and fends off a mooted Comcast-led bid. Shareholders miss out on a control premium and face more uncertainty before Zee can realise its value.

Sony reaps accidental rewards from unruly sprawl

30 July 2019

Sales of chips offset falling video-game revenue at the Japanese group, pushing its quarterly operating profit up 18%. Even so, there's little strategic value keeping the two divisions together. Sony's music and movies arms, though, make for a better kind of conglomerate.

Vivendi’s music bankers have a tough job ahead

24 July 2019

Vincent Bolloré’s $35 bln media group will soon appoint advisers to sell up to 50% of music label Universal, Reuters reported. That will cheer investors, who have waited a year to see progress. But it will be hard to find a buyer who is happy to let the Frenchman call the shots.

Disney movie mojo is tight squeeze on small screen

22 July 2019

The $250 bln media giant’s “Avengers: Endgame” is now the No. 1 grossing film in the world. The Mouse House is home to another six of the top 10 movies, too, thanks to boss Bob Iger’s savvy deals. Transferring the magic to its forthcoming video-streaming services may be hard.

Publicis merits bottom place in advertising pile

19 July 2019

The French group lost 850 mln euros of market value after disappointing sales forced CEO Arthur Sadoun to scale back 2019 revenue ambitions. Overpriced M&A and broken promises on growth explain why the advertising group’s valuation is lower than peers – even troubled rival WPP.