Daily Mail owner risks firing on no cylinders 25 May 2017 The UK newspaper’s parent DGMT has been able to offset media-sector ailments by growing in business information and events. A new cut to its forecasts suggests that formula could be reversing. The problem is that profitability could prove elusive at online crown jewel MailOnline.
Universal Music spinoff could be a one-hit wonder 23 May 2017 Vivendi could float a stake in its music label, the French media group’s CEO has said. The growth of online streaming has revived the industry’s prospects, but the long-term economics are still shaky. An offering would say more about chair Vincent Bolloré’s empire-building.
Roger Ailes reprograms TV to the end 18 May 2017 Few men shaped the modern broadcasting industry more than the former Fox News boss, dead at 77. For one thing, Ailes made conservative politics hugely profitable. His scandalous exit from the Murdoch empire last year has sparked a wider shakeup at the network he helped create.
Iliad customer gain implies eventual investor pain 18 May 2017 The French telco’s first-quarter revenue rose, helped by price-cutting promotional offers. Billionaire Xavier Niel has shaken up French telecoms, but the cut-throat Italian market will be tougher. Iliad investors, who don’t get much of a dividend, may get worried if growth slows.
Windy City’s two dailies better off under one roof 16 May 2017 Chicago Tribune owner Tronc wants to buy cross-town rival the Chicago Sun-Times, if U.S. watchdogs approve. The newspapers already share printing, and Tronc says the newsrooms would remain separate. The suboptimal deal might at least sustain the Sun-Times for a bit longer.
Vodafone shapes up after corporate sprawl 16 May 2017 The UK mobile operator expects better growth after problems in India dragged it to a 6.1 bln euro loss. Rivals have made big bets on TV while Vodafone has grappled with past geographic expansion. It’s managing the spread, but may still be on the wrong side of industry trends.
Vivendi’s Havas deal hangs on new media logic 16 May 2017 The French media group reckons the convergence of advertising, distribution and content justifies its 3.9 bln euro offer for the ad firm. Yet the numbers don’t add up without heroic assumptions, and Havas customers may not take kindly to the new arrangement.
Sinclair programming the Trumpiest of all deals 15 May 2017 Buying rival broadcaster Tribune for $3.9 bln hinges on a regulatory rollback. Tiptoeing around synergies also means less attention on job cuts. And the merger befits the TV-watcher-in-chief. Not all M&A can achieve the Trump trifecta, but many will feature two key factors.
WannaCry exposes glitch in tech business model 15 May 2017 Britain’s health service was among users of Microsoft Windows hit by a virus because they hadn’t installed an update. This is, in theory, the user’s fault. But when customers are big, or the result of their negligence is grave, it’s the company that’s likely to end up bearing the cost.
France makes life too easy for pushy bosses 12 May 2017 Vivendi, Christian Dior and Safran are all doing complex deals driven by big shareholders’ interests – and minority investors can’t do much about it. Muting dissent is meant to make French companies more nimble. It does, but at the cost of helping insiders get their way.
Vivendi investors pay richly for Bolloré cleanup 11 May 2017 French tycoon Vincent Bolloré wants to merge the media group with ad firm Havas, both of which he controls, via a 3.9 bln euro cash offer. His holding company gets most of the premium, which is bigger than it seems. Vivendi shareholders get a stake in a less attractive company.
BT valuation gap will outlast post-scandal reset 11 May 2017 The 30 bln pound UK telco is cutting jobs and executive bonuses after an accounting mess and a profit warning tanked its shares. The moves clean up the past, but BT's future depends heavily on regulators. That should keep the incumbent trading at a discount to nimbler rivals.
Second player in Chinese gaming goes up a level 11 May 2017 Sales at NetEase are soaring and shares have almost doubled in a year. It also scored a real coup by bagging the Chinese rights to Minecraft. Yet the $37 bln group still looks cheap next to rivals Tencent and Activision – maybe because of its heavy reliance on a few hit titles.
Time may join ranks of regretful M&A refuseniks 10 May 2017 Days after spurning takeover interest, the magazine publisher cut its dividend amid falling revenue. Some companies wisely go it alone, but many can't recoup deal-imputed value. With Time's shares trading 40 pct below one bid, it has a steep climb ahead to justify independence.
TalkTalk resets Wi-Fi, but signal is still weak 10 May 2017 The UK broadband supplier cut its dividend and said it wants to get back to its low-cost roots. Competing on price to win subscribers is sensible as far as it goes, but since TalkTalk’s larger rivals offer juicy TV, mobile and internet bundles, the battle is not evenly pitched.
Pandora shuffles furiously to find profitable tune 9 May 2017 The streaming-music service is getting a $150 mln injection from private-equity firm KKR. It’s also shaking up the board and exploring a sale as it struggles to stem losses and get listeners to pay. With Spotify eating its lunch with subscriptions, Pandora is waving white flags.
Sinclair $3.9 bln Tribune deal puts Fox in a hole 8 May 2017 The U.S. broadcaster is paying a 26 pct premium for its rival after Uncle Sam relaxed a wave of regulations. Tribune gives Sinclair more heft to mount a challenge to Rupert Murdoch’s Fox News. But it’s going to cost the buyer more than just the headline price tag.
Australian media buyout might need an edit 8 May 2017 TPG and an Ontario pension fund want to buy and break up Fairfax Media for $2.1 bln, keeping the group's property portal and some big newspapers. Long-suffering investors are being offered a decent headline price. But a fiddly cash-and-stock structure makes for awkward reading.
Macau keeps gambling on gambling 5 May 2017 Gaming revenue in China's casino enclave have risen for nine straight months, and the three top players have gained $20 bln in value. But the sector still lacks a family-friendly hedge against political and economic risk. Resorts better hope their new luck holds.
Viewsroom: Apple starts iPhone birthday bash early 4 May 2017 Lucre from apps and other services should get investors in the party mood ahead of the company’s iconic device turning 10. Big Oil gets buoyed by rising prices – and the New York Times by more readers. And Coach shows the retail industry how to cope with upheaval, up to a point.