Dow Jones employees can’t compete with Murdoch 7 Jun 2007 This looks like an attempt to imitate Sam Zell s takeover of Tribune. But it's a real longshot. The journalists union is trying to drum up alternative bidders, including Ron Burkle, the Clintons' billionaire pal.
How can Murdoch makes his promises believable? 4 Jun 2007 The media mogul says he ll protect the WSJ s editorial integrity. But there is scepticism, given his track record. Murdoch has already made some specific promises. Here are two ways he could put backbone into them.
Dow’s Bancrofts rightly agree to talk 1 Jun 2007 Their decision at long last to meet with Rupert Murdoch and consider options for Dow Jones is a good one. The family is in a great position to bargain for a bright and somewhat independent future for the Wall Street Journal.
Yahoo resignation signals deeper problems 31 May 2007 The abrupt departure of Yahoo's chief technology officer reveals the failure of the firm's strategy to play catchup with Google. With two top positions vacant, Yahoo is reeling and morale is slumping. The rudderless firm needs new leadership.
EMI auction could be short-lived 22 May 2007 In theory, Warner Music could easily outbid Terra Firma s recommended offer at 265p a share. It may yet do so. But Warner could instead just cut a deal to buy the recorded music division off Terra Firma.
EMI opens books to Warner at last 18 May 2007 The UK music group has finally decided to let its rival into the data room. EMI boss Eric Nicoli looks ready to launch a fullblown auction. Even minus synergies, buyout firms think they can match Warner s 260p informal offer. Nicoli s task is to pressure Warner into paying more.
Lenders pulp Sam Zell’s Tribune deal 15 May 2007 Zell may be a real estate impresario. But his plan to leverage limping news group Tribune to the hilt worries lenders. Banks want a higher rate to back the deal. But that barely covers the risk that they may soon be in the newspaper business themselves.
Dual structure helps explain Reuters discount 15 May 2007 The UK information provider is trading at an 11% discount to Thomson s offer. Antitrust concerns are only part of the story. Difficulties arbitraging the proposed structure are also to blame.
Telefonica evicts Endemol for big price 14 May 2007 The Spanish telecoms group has sold a 75% stake in the television production company for E2.6bn, or about 14 times ebitda. That s great for the Spanish. But the new owners Goldman, John de Mol and Mediaset will have to work hard to make the numbers add up.
Thomson’s private equity windfall repairs Reuters damage 11 May 2007 The Canadian firm wrung about $2bn more than the market expected out of a private equity auction for its Thomson Learning business. Shareholders who trounced its stock after its Reuters bid have pushed the shares back up. The buyout frenzy has bailed them out.
Thomson makes punchy £8.8bn bid for Reuters 8 May 2007 So is Thomson overpaying? Yes. But gaining market leadership in financial information has its value if competition authorities allow it. The UK information provider is getting a great deal: a 43% premium, the CEO slot, continuation of the Reuters Trust and extensive brand use.
Reuters/Thomson combo makes sense 4 May 2007 The synergies from cramming the two financial information providers together are likely to dwarf any other combination. With Reuters largest shareholder backing a deal, its days as a solo player look numbered.
EMI gets yet another bid approach 4 May 2007 A rumoured $6bn offer for the UK music group could come to naught. But after a dreadful year, EMI is not in a good position to say no. This could be the trigger to an auction. The market seems to expect something this time.
Why have Reuters and Dow both received offers? 4 May 2007 Simultaneous approaches for two of the world s top global financial information providers isn t a coincidence. The world is globalising. Finance is globalising faster than other sectors. And Reuters and Dow Jones are plays on that trend.
Reuters gets bid approach 4 May 2007 Days after Murdoch s Dow Jones bid, another big financial information group looks to be under the hammer. It s not clear who the bidder is, although Thomson looks possible. Under Reuters constitution, any deal would have to be agreed.
Dow bid may make Pearson keen to offload FT 3 May 2007 The carrot is the high price Murdoch is offering for a trophy media brand. The stick? Having to take on a Murdochowned WSJ. The UK publisher would probably sell the FT if someone offered the right price. But Murdoch's bid for Dow Jones may make it keener to exit.
US newspaper rally likely short-lived 2 May 2007 That's especially true in the case of The New York Times and Washington Post, where families in control have no interest in selling. While newspaper shares soared in response to Murdoch's bid for Dow Jones, the gains are not justified by fundamentals or takeover prospects.
Not all media dynasties are equal 2 May 2007 The irony in News Corp s bid for Dow Jones is that one dynasty, the Murdochs, are proposing replacing another, the Bancrofts. The big difference is that the Murdochs are a young dynasty. The founder s vision is still very live. The Bancrofts have become rentiers.
Time Warner’s AOL bet starts paying off 2 May 2007 The media giant rolled the dice when it converted AOL from a subscriptionbased service to a free, advertiserdriven platform. But the gambit is working. With ad revenue exploding and subscriber expenses shrinking, AOL's operating income is expanding smartly.
Sky’s big bet on broadband starts to pay off 2 May 2007 The UK payTV group had strong subscriber growth despite a marketing blitz from Branson s Virgin Media group. Better yet, each subscriber is spending more on Sky products. This doesn t look like a oneoff.