Cox: Snap’s IPO may benefit investors after all 1 Aug 2017 Multiple share classes will be banned from the influential S&P 500 Index, after the disappearing-message app's disastrous debut rankled fund managers. Though one-share-one-vote violators like Facebook will be grandfathered in, the decision could help end a long era of feudalism.
Macau cashes in on cheap thrills and VIP perks 1 Aug 2017 The gambling hub is enjoying a flutter this year. VIP and ordinary gamers stayed at the tables in July, lifting monthly revenues to their highest level since January 2015. If China's economy cooperates, and planned capacity comes on line, the good times will roll on.
Discovery’s cable deal rests on rosy assumptions 31 Jul 2017 The producer of “Shark Week” is buying Food Network and HGTV owner Scripps for $14.6 bln. Cost savings won’t cover the premium, and getting distributors to pay up for more content will be a hard sell in a churning media market. The Scripps family is wise to take mostly cash.
Apple sets course for China policy minefield 31 Jul 2017 The U.S. tech giant has minted money in China for years thanks to the iPhone. But slowing sales are forcing it to turn to cloud and payment services. This puts Apple squarely in the sights of the hostile regulators and local rivals that helped drive off Facebook and Uber.
New York Times could risk all-digital bet 26 Jul 2017 Online subs surged with Trump’s rise. But print-ad revenue is down a quarter in two years, adding to job-cut angst. Ending printing would be radical but not absurd. Breakingviews estimates the company would need 1.4 mln, or 50 pct, more paying digital users to end up even.
ITV takeover is increasingly plausible plot twist 26 Jul 2017 The UK broadcaster, which recently named easyJet’s Carolyn McCall as its next CEO, is 15 pct cheaper than three months ago. A bidder like Liberty Global could now make a decent return – but would have to brave the risk of a further slowdown in the free-to-air TV ad market.
Barnes & Noble sale has plot logic but no ending 25 Jul 2017 An activist wants the $560 mln U.S. bookstore chain to go private. That makes sense for a fading business that needs work. The problem is finding a buyer on the other end. Amazon’s Whole Foods deal has everyone thinking. But Barnes & Noble may be nowhere on Jeff Bezos’ list.
Bolloré’s grand media plan for Vivendi takes shape 25 Jul 2017 The French group’s TV arm has proposed a joint venture with Telecom Italia to buy content rights. Building a media network that is able to compete with U.S. giants may trim Vivendi’s conglomerate discount. Vincent Bolloré will have to find more synergies to close the gap further.
Free phones power Mukesh Ambani’s tech ambitions 21 Jul 2017 India's richest man has seriously upped the ante in the country’s mobile war. His Reliance Jio network is offering free internet-enabled handsets, potentially reaching 500 mln more people. A strong oil refining business means he can worry about recouping the investment later.
Publicis pleasant surprise flags ad world’s plight 20 Jul 2017 The French ad group’s top line grew 0.8 percent. But even that looks good: in the previous two quarters Publicis’ organic revenue shrank, and analysts were expecting it to do so again. The challenges to media buying make the industry’s low valuation look justified.
BBC stars will gain from radical pay transparency 19 Jul 2017 The UK public broadcaster has named everyone who earns more than 150,000 pounds a year. The main conclusion is that valuing TV presenters is guesswork. As with chief executives of listed companies, disclosing compensation will just enable them to demand even higher wages.
Discovery, Scripps tie-up a subscale DIY fix 19 Jul 2017 The cable network part-owned by John Malone may be in talks to combine with its smaller peer. A deal with the producer of HGTV would give Discovery more clout with distributors, but it would still be a bit player in a fast-changing industry. Bigger pockets might get the job done.
Ericsson throws kitchen sink at the kitchen sink 18 Jul 2017 The Swedish telecom kit maker has issued its second profit warning in four months. Demand for wireless networks is shrinking faster than thought. At least Ericsson is no longer losing market share, and has put a number on touted cost savings. It can’t afford to disappoint again.
Netflix triggers shareholders’ Pavlovian response 17 Jul 2017 The video-streaming service added more subscribers than expected in the quarter and grew operating income, up 83 pct, faster than revenue. That sent shares soaring, even though expected profitability falls a long way short of being able to justify the stock’s fairy-tale multiple.
EasyJet can afford a spell on autopilot 17 Jul 2017 Losing its chief executive to broadcaster ITV is manageable for the UK airline, one of the FTSE-100’s best performers this year. While Carolyn McCall did a good job – and bagged easyJet a higher valuation than Ryanair – what she leaves behind has structural advantages over rivals.
Murdoch’s Sky takeover can survive lengthy review 14 Jul 2017 The media mogul won’t offer more concessions to win quick approval for his 11.7 bln pound bid for the UK broadcaster. That will probably trigger an extended probe which investors think makes a deal less likely. But authorities can suggest remedies to clear the way for a deal.
Protest to keep internet weird is worthy fight 12 Jul 2017 Amazon, Netflix and 100,000 others are urging resistance to a U.S. watchdog's plan to scrap rules on so-called net neutrality. Broadband provider AT&T is among them, with its own arguments. The common thread is that companies shouldn't be able to choose which content gets online.
Pearson’s $1 bln Penguin sale papers over cracks 11 Jul 2017 The education group is selling almost half its 47 pct stake in Penguin Random House to co-owner Bertelsmann. Pearson has maximised the cash proceeds, but the valuation looks low. With a still-troubled core business, boss John Fallon is running out of assets to sell.
Newspapers push wrong solution to online duopoly 10 Jul 2017 The Wall Street Journal and others want the right to bargain collectively with Facebook and Google. The titans’ dominance of the $83 bln U.S. digital ad market is a concern, but not just for print media. Combating it requires antitrust enforcement, not an industry carve-out.
Sunac seals China knight role with $9 bln Wanda buy 10 Jul 2017 The indebted developer is taking a big portfolio of tourism and hotel properties from Dalian Wanda, allowing the latter to reduce debt. Sunac has already splashed cash to help troubled tech startup LeEco. The latest overtures will add to Sunac's imposing mountain of leverage.