Media & Entertainment

The digital natives are restless

11 Aug 2006

Media companies have launched a wave of deals in an attempt to grapple with changes in what and how young people use media. But what kids consume is still changing. And how media groups will be paid has yet to be answered.

Charles Allen finally gets the boot at ITV

8 Aug 2006

The drums beating for Allen s head were too loud for the board to ignore. But his departure won t solve all of the UK broadcaster s issues. The management vacuum may even exacerbate them. The board had better line up a hot candidate quickly.

Time Warner milks AOL

3 Aug 2006

By slashing $1bn in costs and making the service free, Time Warner is ending the costly marketing that failed to retain AOL subscribers. Although management claims this will spur growth, it is actually the surest way to maximise AOL's free cash flow.

Pearson still has bags of potential

31 Jul 2006

But Pearson can do a lot more. It has plenty of fat to cut and it might think about selling noncore assets like IDC. Everimproving results at the publishing group may reduce the pressure for the newish chairman, Glen Moreno, to crack the whip.

BSkyB goes for broadband land-grab

18 Jul 2006

The UK payTV group needs to offer free broadband to protect itself from rivals. But it will cost and the returns are uncertain. Even using Sky's own projections, this hardly looks like a financial bonanza in the making.

Why is Vivendi looking at Pages Jaunes?

17 Jul 2006

It s not obvious why the media and telecoms group should own the yellow pages company, even if the numbers might stack up. That might make it a pretty lowrisk acquisition. But the worry is that Vivendi s conglomerate discount will widen further.

Shock EU ruling on Sony/BMG threatens EMI deal

13 Jul 2006

An EU court has annulled the Commission s 2004 clearance of the music deal. Sony and BMG may have to renegotiate the whole thing. That's not just a bore for them. It potentially puts the EMI/Warner deal in jeopardy.

Univision sets new leverage record

28 Jun 2006

Not only are the winning bidders writing one of the largest LBO equity cheques. They're also piling on debt at a whopping 12.3 times ebitda. That was too high for some other privateequity firms. The $13.7bn Univision sale may signal the high water mark for this LBO cycle.

EMI rightly rejects Warner pacman

28 Jun 2006

Warner's offer for EMI is less generous than EMI's offer for Warner. What's debatable is if shareholders are better off buying or selling. Ultimately, some deal is likely to emerge from this complex tangle. What about exploring again a mix of cash and shares?

Google dodges trick clicks

23 Jun 2006

The search juggernaut has launched a new system for ad sales to deal with socalled click fraud. This looks like a defensive gesture. But if it allows Google to charge substantially more for advertising, it could be a big revenue booster.

Aegis shareholders give Bollore a beating

14 Jun 2006

A whopping 94% of the UK media group s shares not controlled by Bollore voted against the French financier s resolutions. But to keep the French raider at bay, Aegis needs to ensure a high turnout at future general meetings, possibly for years.

Aegis tries to rally the troops to fend off Bollore

26 May 2006

The British ad group is campaigning hard for shareholders to vote down Bollore s motion for board representation and quite right too. But Bollore owns 29% of Aegis. So it needs an especially big turnout to thwart the French investor's attempt to grab control.

Frere splits difference with Mohns in Bertelsmann exit

25 May 2006

By buying Frere s stake for E4.5bn the media firm avoids listing itself but at the price of selling its music assets to raise cash. Meanwhile the Belgian financier finally secures an exit but at a price that makes his return on this investment look mediocre.

Vivendi rejects E40bn phantom bid

17 May 2006

It s hard to tell just how serious Sebastian Holdings is about buying the French media and telecoms group. But it may put pressure on JeanBernard Levy to boost the share price. That s no bad thing.

The Apprentice is a blast of fresh air

10 May 2006

At a time when business and free market ideas are under daily assault in Britain, the reality TV show has been a blast of fresh air. Carping about the host Alan Sugar, or the portrayal of business life, miss the point: the finalists have struck a blow for wealthcreation. At a time when business and free market ideas are under daily assault in Britain, the reality TV show is a rare celebration of capitalism. Carping about the host Alan Sugar, or the image of business, miss the point: the finalists have struck a blow for British wealthcreators.

HMV’s weak trading shows folly of snubbing Permira

9 May 2006

The music and book retailer is being scalped on the UK high street. And there s still no sign of a compelling turnaround plan. With the shares 20% below Permira s 210p lapsed offer and no other bids on the table, HMV s decision to rebuff private equity looks unwise.

BSkyB cornered on football rights

8 May 2006

The pay broadcaster relies on the sport. So it couldn t afford to lose the lion s share of the UK Premier League matches. BSkyB did win four out of six packages, but it paid 30% more than last time. It also gets an aggressive new competitor Setanta.

EU approval of EMI and Warner not a slam dunk

5 May 2006

The UK and US music groups will have an easier time jumping through the regulatory hoops this time round. But they still have to convince the EU that shrinking the market to three major players isn t a problem.

Copper bulls should stick to equities

5 May 2006

Want to profit from copperintensive Asian growth? Wait for the metal s price to collapse. It s only propped up by index buying. But if you must buy now, go for the big producers shares. They have a yield. And their prices are only up half as much as the metal.

Sweeter private equity bid may tip balance at VNU

5 May 2006

The latest offer for the Dutch media group is a mere 3% higher than an earlier offer that was rejected by shareholders. But the acceptance threshold has been lowered, former holdouts have already come on board. That may be enough to swing the deal.