EasyJet’s McCall has choice of turbulence at ITV 6 Jul 2017 The airline boss is tipped to pilot the UK broadcaster, according to a newspaper. A digitally savvy outsider would be useful at a company that faces slowing ad revenue and costly content wars. But steering an incumbent rather than a disruptor will be more challenging.
Tencent’s e-books require some Hollywood stardust 5 Jul 2017 The tech giant’s publishing arm may raise up to $800 mln in a Hong Kong listing. Catering to bookworms isn’t very lucrative, even if more readers are paying for electronic literature. The real payoff will lie in turning stories into blockbuster films, video games and merchandise.
Naspers’ addiction to Tencent is unhealthy 3 Jul 2017 The South African group is worth $28 bln less than its stake in the Chinese gaming giant. Naspers boss Bob van Dijk rules out a spinoff, but that would be the best fix. Unfortunately for would-be activists, supervoting shares make it hard for outsiders to apply pressure.
Murdoch’s Sky bid promises lack credibility 29 Jun 2017 Regulators say a bid by 21st Century Fox for control of pay-TV firm Sky may give the mogul’s family too much power over UK news. The government could approve the deal if it accepts remedies such as a separate editorial board. Murdoch’s history of meddling makes this unconvincing.
Time’s Fortune 500 index reeks of desperation 26 Jun 2017 The publisher hopes a new stock benchmark based on its business magazine’s list of the largest U.S. companies can bring in much-needed revenue. It may have worked over a decade ago. But rivals like the S&P 500 have already won over the most promising users: passive funds.
Match.com owner leaves investors looking for love 26 Jun 2017 A CalPERS lawsuit has forced IAC to scrap plans to use non-voting stock to give Chairman Barry Diller eternal control of the company. Legal threats may thwart similar egregious ideas. But to remove existing supervoting powers at Facebook, Snap and the like is a far harder task.
Bolloré clan’s deal sums don’t add up 23 Jun 2017 Vincent Bolloré’s Vivendi is buying ad group Havas, run by his son Yannick. The younger Bolloré says it may create at least 390 mln euros of value, justifying the premium. That’s dubious: the premium is arguably bigger than he claims, and the return on investment still looks low.
IPO puts Altice USA’s best program behind it 22 Jun 2017 Bankers directed a flawless show for the public offering of the Dutch-based cable-TV company’s American business. Altice USA now trades at a higher multiple than Charter and Comcast yet has more onerous debt and no clear path to expand. Shareholders may want to change channels.
China underscores new hard line on outbound M&A 22 Jun 2017 The banking regulator is probing loans made to serial acquirers Anbang, Fosun, HNA and Wanda, reports say. Following the detention of Anbang's chairman, the message is clear: bold foreign M&A is out of bounds. The puzzle is why the authorities let the splurge last for so long.
Diageo deal has pension chaser for George Clooney 21 Jun 2017 The drinks giant will pay up to $1 bln for a tequila brand founded by the actor and two buddies. Casamigos is a fast-growing firm ripe for international expansion. The worm in the bottle is that Clooney has to promote the tipple until he turns 66 to collect the full check.
Old media with a tech-like multiple is new Vice 19 Jun 2017 With $450 mln raised from TPG, the company boosted its worth to nearly $6 bln. That’s 14 times projected EBITDA, way above CBS or Disney. The valuation suggests scorching growth of Vice’s cable network and digital properties. Investors, however, may be snapping to conclusions.
Publicis broadcasts ad world’s shortcomings 19 Jun 2017 A shareholder group says the French media agency flattered its operating margin by including a one-off compensation payment. The company defends its accounting but the case is a dose of unhelpful publicity for an industry facing a bid-rigging probe and claims of opaque pricing.
Cox: NBC’s fake-news foray could have real fallout 16 Jun 2017 Comcast's $10-bln-a-year network faces a viewer and advertiser backlash over Megyn Kelly's upcoming interview with the founder of Infowars. Backing down would benefit the conspiracy theorist backed by Donald Trump. Only a hard-hitting takedown may help NBC avoid financial pain.
Altice IPO offers new reason to dislike cable guy 13 Jun 2017 Entrepreneur Patrick Drahi is seeking a $23 bln valuation for his U.S. unit while giving investors almost no voice. With hefty debt and few assets to buy, it’s hard to see Altice achieving its grand ambitions. There are plenty of reasons to be a cord-never, financially speaking.
Yahoo investors are U.S. tax-reform skeptics 12 Jun 2017 With the sale of its core business ratified by shareholders, the company's $52 bln worth should reflect the after-tax value of stakes in Alibaba and Yahoo Japan. For now, the implied tax hit is 35 pct. People who believe Trump will succeed in slashing taxes should buy the stock.
Pandora opens itself to Malone’s box of tricks 9 Jun 2017 The $2 bln music-streaming service agreed to a capital infusion from the U.S. media mogul's Sirius XM. John Malone eventually took over the satellite-radio company after a similar initial investment. Pandora rejected a full buyout, but may now be exposed to creeping control.
Review: Zippy Uber trip gets barely halfway there 9 Jun 2017 Readers of "Wild Ride" are in safe hands with Fortune's Adam Lashinsky at the wheel. The book is efficient and effective, like travel using Uber's app. Given the fast pace of events for the $68 bln firm, however, life already has sped past this literary journey's destination.
Facebook investors shouldn’t discount fake news 7 Jun 2017 Investors spurned a proposal that the social network report on the business risks of bogus news on its site. It’s a complacent stance on a topic Mark Zuckerberg has started taking seriously. At least opposition to multiple voting rights suggests governance isn’t a dead issue.
Top U.S. CEOs revolt against reality TV version 2 Jun 2017 Donald Trump’s rejection of the Paris climate pact drew swift opposition from corporate bosses, including those of GE and Goldman. The Tesla and Disney chiefs quit his advisory council. Losing business support this early bodes poorly for the administration’s economic promises.
Art world upstart sprays tech fortune on canvas 2 Jun 2017 Japan's Yusaku Maezawa is building a collection of Basquiats and other masterpieces. The soaring value of his fashion portal vividly illustrates how investors are enchanted by the tech industry’s fast growth and fat margins. It also means he can afford to paint the town red.