Warner takes EMI regulatory problem into its own hands 20 Feb 2007 The US music group has managed to get Impala, the independent music label association, to support its bid for EMI. After two profit warnings and a management clearout, EMI looks more vulnerable. Warner might finally get its way.
Reed turns into a sexy media stock 15 Feb 2007 The publisher s decision to sell its underperforming education business makes a lot of sense: it was holding the company back. Reed now looks set to deliver doubledigit earnings growth a rarity in today s media industry.
Playboy is one rich bunny 15 Feb 2007 Despite its litany of woes and Hefner s determination not to go private, Playboy trades at a thumping 23 times 2008 earnings. This is too sexy a multiple for a company that just missed consensus earnings and is under siege from racier rivals.
EMI dives on second profit warning 14 Feb 2007 Barely a month after its first profit warning, the UK music company has warned sales will shrink even further. This smacks of incompetence. It also makes its very recent rejection of a private equity approach look foolhardy.
Malone cut a sweet deal with Time Warner 14 Feb 2007 John Malone's swap of 60m Time Warner shares for the Atlanta Braves and $1bn in cash took over a year to negotiate. The effort paid off. Yet while Malone gets lots of assets and a baseball team, Time Warner gets to buy a hefty chunk of its stock back at a discount.
Virgin Media has a lot to prove 8 Feb 2007 The former NTL:Telewest says its new internet, television, phone and mobile offering will have the competition running scared . Richard Branson s Virgin brand is certainly powerful. But the market has to be persuaded that this isn t just an old truck painted red.
GE management change won’t bring NBC spinoff 7 Feb 2007 Some investors question housing a media company inside GE s industrial and financial empire. Management insists there are synergies. NBC's new boss, Jeff Zucker, isn't likely to shed fresh light on the riddle. Those hoping for a spin off will be disappointed.
Tribune’s Chandlers try bully tactics 6 Feb 2007 They want the publisher of the LA Times to accept their lowball buyout proposal and are threatening a proxy battle to get their way. Their frustration, having kicked Tribune into a failed auction, is understandable. But investors should reject the family s tactics.
Clear Channel’s $26bn LBO looks like a steal 30 Jan 2007 The radio group s takeover seemed low when it was launched. The subsequent 15% rally in its billboard business makes it look downright mean. Back out Clear Channel Outdoor s value and the rump radio and TV business is rated at a 25% discount. A breakup makes more sense.
Endemol has a one-man poison pill 24 Jan 2007 Endemol s French boss may quit if he doesn t like the next owner. This could hurt not least because Courbit would get a giant payoff. Courbit, who wants to buy Endemol himself, is using his pill to jockey for position against the likes of Disney and Jon de Mol.
John Malone may do a TCI on DirecTV 22 Jan 2007 The media mogul's triumph in grabbing the satellite group from Murdoch may just be the beginning, if his past success with TCI is a guide. He could beef it up with sports channels such as Cablevision's; then flog it to a rich suitor like Verizon doing it all taxefficiently.
Big Brother racist row good for business 18 Jan 2007 As the trash TV show which cynically appeals to viewers base instincts has plumbed evergreater depths, ratings have soared. The awful truth is that s good for Channel 4, Endemol, Carphone Warehouse and maybe the victim, a fading Bollywood star.
Carphone Warehouse cancels Big Brother sponsorship 18 Jan 2007 Does this show even bad taste has its commercial limits? There are parallels with Murdoch s cancellation of the OJ Simpson book. But those hoping that morality will triumph over trashiness should note that the share price of Endemol, Big Brother s maker, is still up.
Pearson is an LBO waiting to happen 18 Jan 2007 The £6bn publisher is one of the few media stocks that actually makes a plausible LBO story because of its breakup potential and low debt. So why hasn t it happened? The stock isn t cheap, and management probably wouldn t be wild about the idea.
Tribune shareholders face a take-under 17 Jan 2007 Trends in newspapers and not just circulation have worked against the media group. Deal multiples have been killed over the past year. That means the owner of the LA Times, whose auction ends today, could be worth less than its $7.3bn market capitalisation suggests.
Record labels face stage two of internet destruction 17 Jan 2007 Internet piracy from fans has already hit music companies hard. Now the big labels face a musicians' revolt. Online services make it easy to market, produce and distribute music pushing bands to go it alone.
Cablevision directors just say no to Dolans 17 Jan 2007 By rejecting the $8.9bn offer, the cable group s board didn t just do the right thing it validated the spirit of shareholder capitalism. Too many boards have let themselves be bullied by controlling shareholders armed with the weapons of excess liquidity. This is a good sign.
Messier rediscovers art of the deal 29 Dec 2006 The former Vivendi chairman has gone back to his investment banking roots. His ParisNew York boutique is thriving. Messier always liked the American way of doing business. Now he is following another US pattern fail and start again.
Sly Bailey’s revamp is all smoke and no Mirror 14 Dec 2006 The Trinity Mirror boss is selling bits of the UK newspaper group. But its flagship title is struggling, and the timing of a sale looks odd. Still, Bailey had to do something. As the sector gets tougher, it is a good moment to build up investor goodwill.
Permira walks away from EMI 14 Dec 2006 It seems the private equity group just couldn t make the numbers work and got cold feet. That's not too surprising. The music market is still struggling. And the regulatory risks on a future breakup of the UK music group look higher than ever.