Emap could add value by ordered sell-off 28 Aug 2007 The £2.5bn UK media group is attracting lots of trade buyers for its diverse operations. The challenge is getting the most out of breakup. One trick might be to save the best the B2B division for last. A pureplay company in this hot area could command a higher multiple.
Consumers opt for time away from media 22 Aug 2007 New media is flourishing, but there are only so many hours in the day. So Americans are watching less, but more efficiently. Viewers seem to be keen to take in smaller morsels of digital delight. That s tough on traditional content providers.
Murdoch’s Dow decisions will determine his legacy 31 Jul 2007 Key Bancroft family members were right to accept Murdoch s offer. The family had proved unable to manage Dow Jones effectively. Murdoch can use his resources to grow the company. But his own legacy may be largely determined by how he does that.
Reuters/Thomson tie-up looks on track 27 Jul 2007 The financial information giants have each issued strong results ahead of teaming up. Reuters sales are growing slightly faster at 6.4%. Regulators still need to clear the deal. Approval in the US for the merger of two Chicago exchanges, without forced disposals, is a boost.
Amazon’s growth can’t justify its price 25 Jul 2007 Dotcom veteran Amazon has seen an absurd price increase before. It didn t last. This present surge won t either. The company s earnings would need to outperform the market by over 20% annually for five years to justify its PE. That s highly unlikely.
Citigroup may have stopped dancing 25 Jul 2007 Citigroup is arguing a technical point, but it s a risky game for a small sum. Could the credit music have stopped playing? Two weeks ago, the bank said it was still grooving away at the buyout ball. Now it s stalling on lending Terra Firma £2.4bn to buy EMI.
Google needs a new market 20 Jul 2007 The internet search giant wants to increase its operating income every quarter. But it didn t in this past one. Google says fast growth caused this hiccup. But trouble at competitor Yahoo might point to broader problems in the search market.
Warner right to stand back from EMI 18 Jul 2007 The sector is in freefall and credit markets are wobbly. But Warner could still get what it wants by cutting a deal with Terra Firma. The US music giant has decided not to outbid private equity group Terra Firma s £3.2bn offer for its UK rival.
What’s Harry Potter really worth to Time Warner? 17 Jul 2007 It could bring in more than $1bn. And studios depend on blockbusters to offset all their flops. But Time Warner s stock isn t levitating. The volatility of Hollywood studio revenues and the opaqueness of their margins have kept its investors from falling under Potter s spell.
James Murdoch finally starts to deliver at Sky 11 Jul 2007 The young boss of the UK TV group had a slow start. But he has made two bold moves in his fourth year on the job. In response, the shares have started to outperform. But Sky's investment record over the full Murdoch era is still less than impressive.
Microsoft gives another reason to spin off Xbox 6 Jul 2007 It has been six years since the software giant made its games console debut. The business never came close to covering its cost of capital. Now Microsoft has missed lowered Xbox sales targets and will pay $1bn for a recall. It s time to stop pumping quarters into this project. Microsoft will now spend $1bn to repair faulty units. It s time to stop pumping quarters into this programme.
Virgin Media looks more vulnerable target this time 2 Jul 2007 The UK cable group s new private equity suitor, Carlyle, looks to have a better chance than its predecessors of pulling off a deal. Virgin s drive to turn itself around is struggling. And Sir Richard Branson, its biggest investor, may turn a deal to his advantage.
ProSiebenSat pays up for SBS 27 Jun 2007 KKR and Permira, majority owners of both broadcasters, had always planned to scrunch the companies together. But the E3.3bn price equivalent to 14 times ebitda looks high and the synergies ambitious. At first blush the E3.3bn price akin to 14 times ebitda looks high. But add in the synergies, and the price looks more reasonable.
Are financial newspapers luxury brands? 21 Jun 2007 LVMH s offer for Les Echos, France s top business paper, suggests so. It s in nearly the same price league as Murdoch's bid for Dow. The LVMH boss s record of editorial meddling makes Murdoch seem a saint. But if he treats Les Echos like his other brands, it might prosper.
Will Bloomberg put Bloomberg on the block? 21 Jun 2007 Despite his denials, Mike Bloomberg s decision to drop the Republicans positions him for an independent run at the White House next year. To avoid Berlusconiesque conflict charges he d be smart to exit Bloomberg. But the financial media landscape s changes narrow his choices.
Yahoo deal would crystallize MySpace value 20 Jun 2007 New Corp did well by buying MySpace. Yet the social networking site s a lost cog in Murdoch s media leviathan. Injecting MySpace into Yahoo for stock would bring out its value. Murdoch said in December it was worth $6bn. This looks about right. News Corp did well by buying MySpace. Yet the social networking site s a lost cog in Murdoch s media leviathan.
Pearson/GE bid for Dow looks a fantasy 20 Jun 2007 The partners could structure a deal without putting in any cash. A new group combining the FT, CNBC and Dow could borrow the purchase price. But the synergies wouldn t be enough to justify the huge premium needed to outbid Murdoch. And extracting them would be painful.
Yahoo looks vulnerable to a lowball bid 19 Jun 2007 The internet group s replacement of its chief executive looks like a fudge. It s not clear who s running Yahoo or for how long. The plan addresses neither Yahoo s technological or strategic problems. And sending out mixed signals makes the board look divided.
O’Brien-O’Reilly feud looks personal 15 Jun 2007 Billionaire Denis O Brien has been heavily criticised by the Irish Independent, controlled by Tony O Reilly. Now O Brien is fighting back. But his complaints about bad governance at the E3bn Independent News seem overdone. This won t shine up O Brien s tarnished reputation.
WSJ, FT, CNBC combo throws down challenge to Murdoch 15 Jun 2007 On paper, squishing these three top financial news groups together makes sense. The cost savings could be significant. But the execution risk would be huge. For the idea to fly, the mooted partners will need a credible story about how it will be managed.