Media & Entertainment

Songwriters’ Spotify protest song is off-key

21 May 2019

The Swedish streaming site gets flak from musicians angry at low payouts. It’s a legitimate gripe, but label middlemen take home more than Spotify, which doesn’t even cover its costs. Tech giants like Apple and Amazon, meanwhile, stop CEO Daniel Ek from increasing his prices.

MTN’s cut-price Nigerian float has silver linings

16 May 2019

The South African telecom group is listing its Nigerian unit for $5 bln. That looks cheap, but the move chimes with the government’s aim to develop local markets, and may ease a tax dispute. Exposing local shareholders to Abuja’s whims might even make it more predictable.

Finsbury buyout would test WPP breakup defences

15 May 2019

Public relations guru Roland Rudd wants to buy back his firm from the ad giant. Accepting the mooted 100 million pound price tag might prompt other WPP units to go it alone. Despite their 18-year relationship, it’s a reminder of the fragility of people businesses.

Comcast boss rides Disney’s streaming coattails

14 May 2019

Brian Roberts will hand over Hulu, but not yet. The NBC owner has the option to sell its minority stake to the Mouse House in five years for at least $5.8 bln but potentially far more if Hulu succeeds. Having lost Fox to Disney, Roberts has found another way to make Bob Iger pay.

Vodafone belatedly makes the right dividend call

14 May 2019

Boss Nick Read slashed the 43 bln euro telecom group’s payout by 40% but also kept cash-flow targets the same. That implies he thinks investors would prefer a lower-levered company over one handing out unsustainable rewards. He might have made that connection a little sooner.

Mergermarket’s fourth owner faces the toughest job

13 May 2019

BC Partners is selling the M&A-news service to Ion Group for $1.8 bln. The Irish software and data group is paying by far the highest multiple yet, and buying from private equity brings added risk. It’s putting a lot of faith in sticky clients and cross-selling products.

New BT manager tries to avoid Barcelona-Ajax fate

9 May 2019

The 22 bln pound UK broadband group has a big lead over rivals. So did the European soccer clubs before unlikely defeats this week. CEO Philip Jansen hopes to press his advantage by building more fibre lines. Staying ahead will probably require lower dividend payouts over time.

Disney streaming discount looks excessive

8 May 2019

The Magic Kingdom’s stock is up over 15 pct since boss Bob Iger unveiled plans for direct-to-consumer products in April. Yet Netflix’s experience suggests there is much more value to be had. Some skepticism is warranted, but the Mouse House’s brands and pricing deserve more love.

SoftBank plays its shell games with Yahoo Japan

8 May 2019

Masayoshi Son's conglomerate is shifting a $4 bln stake in the internet portal to its recently listed Japanese telecom unit. There is strategic logic in the move, but the financial benefit for shareholders on both sides is blurry. It's a prime example of Son's opaque dealings.

Disney sports deal is small fumble in long game

6 May 2019

The Magic Kingdom sold some regional networks to Sinclair for $10.6 bln – much less than what was expected. But Disney completes a necessary task to clear its $71 bln deal for bits of Rupert Murdoch’s Fox. The launch of streaming services, with Fox content, is the greater prize.

Lesson of Disney’s ‘Endgame’: Go big or go home

29 April 2019

The Marvel spectacle pummeled box-office records with $1.2 bln in global sales. The smash hit strengthens the Magic Kingdom’s leverage over screens and furthers superheroes’ dominance of Hollywood. Other film fans will turn to streaming services like Amazon to fill the void.

Holding: Comic sues, but joke’s on copyright law

23 April 2019

Heard the one about the writer who says talk-show host Conan O’Brien stole his schtick? It’s the latest case of creative types, from Radiohead to Oracle, refusing to share clever but derivative ideas. Excessive legal protections that stifle innovation are no laughing matter.

Viewsroom: ‘Game of Thrones’-style war heads to TV

18 April 2019

HBO’s hit series is ending as parent AT&T, Amazon, Apple and Walt Disney launch their claims to the streaming-video crown. Netflix, though, will be hard to usurp. Elsewhere, India’s weeks-long election gets underway. And global economic growth collides with nationalism’s rise.

Buyback plan gives Bolloré a Vivendi backstop

16 April 2019

The French media giant’s shareholders have approved plans to buy back a quarter of its stock at 25 euros a share. That’s a handy insurance policy for billionaire Vincent Bolloré. If the stock drops, he has scope to gain greater control of the company at no personal cost.

‘Game of Thrones’ will end with an HBO cliffhanger

15 April 2019

The fantasy TV series entered its final season on Sunday, meaning its broadcaster will soon have a dragon-shaped hole to fill. HBO has weathered successful finales before. This time it’s under new ownership, and cash-rich rivals are paying up to claim the industry’s iron throne.

Publicis’ biggest buy distracts from deeper issues

15 April 2019

Chief Executive Arthur Sadoun is spending $4.4 bln on Alliance Data Systems’ Epsilon digital marketing unit. It’s a bold bet on more targeted advertising, but does little to help the French group hit next year’s 4 pct organic revenue growth target, or lure back lost clients.

Mickey Mouse throws down a tiny white glove

12 April 2019

Disney's flagship video-streaming product will cost users less than Netflix, boss Bob Iger says. That’s aggressive. Even if the Magic Kingdom has the brand and content to attract millions, competitors will swing hard. Meanwhile Iger may not stick around to see the results.

Nordic $3.2 bln telco deal makes little sense

9 April 2019

Norway’s Telenor is buying a majority stake in Finland’s DNA and will offer to buy the rest for a total price tag of 2.8 bln euros. The financial returns of this odd move into a mature market will be so slim that CEO Sigve Brekke may do better by handing more cash to investors.

Netflix gives a new meaning to “Hollywood ending”

3 April 2019

A proposal to require that movies be shown in theaters for a set time to be eligible for Oscars may be illegal, the U.S. antitrust chief warned. It’s odd the DOJ cares, but it has a point. Such tactics show how much streaming services like Netflix threaten Tinseltown’s old guard.

Publicis’ $5 bln deal would push data fad to limit

1 April 2019

The French group may buy Alliance Data’s digital-marketing unit. The mooted price tag is manageable given Publicis’ pristine balance sheet. But the low returns on offer suggest that CEO Arthur Sadoun is worried about keeping up with data-rich ad rivals and tech giants.