Fox scandals weaken Murdochs’ TV future 4 Apr 2017 Mercedes-Benz pulled its advertising after news that on-air host Bill O'Reilly has faced sexual harassment claims. The cost to Fox is low, for now. Yet as with, say, Uber, a toxic culture can damage long-run efforts to broaden consumer appeal – especially with younger cohorts.
ITV takeover is a hard story to pitch 4 Apr 2017 The UK free-to-air broadcaster’s shares have risen more than 15 pct in the last six months, partly on bid speculation. But ITV’s high margins and exposure to fickle TV advertising make a potential 12 bln pound price tag hard to justify – even for top shareholder Liberty Global.
Hollywood’s box-office script could use a rewrite 31 Mar 2017 Movie-ticket sales barely budged last year, at $39 bln globally. Sony Entertainment and Viacom’s Paramount Pictures are changing bosses amid serious challenges. Netflix is forcing studios to make films available on demand sooner. Tinseltown may want to recast its formula.
Keep watching for a rule Trump can usefully kill 30 Mar 2017 U.S. broadcasters Sinclair and Tribune, worth a combined $7.5 bln, may be eyeing a merger in the hope of changes to regulations the president's new TV watchdog thinks are "antiquated." Ownership caps could use a rethink. Allowing more mergers would help keep the industry healthy.
Disney gives Paris investors a Scrooge McDuck exit 27 Mar 2017 The maker of "Mickey's Christmas Carol" wants to buy out shareholders in its Paris theme park at a premium. Yet the price downplays Euro Disney’s profitability and real estate. This is poor compensation for a rollercoaster investment with more down than up.
Newspaper publisher scoops its own shareholders 24 Mar 2017 Los Angeles Times owner Tronc agreed to buy out investor Oaktree at the same premium price at which it rejected a takeover bid. It also cleared the way for Chairman Michael Ferro to grow his stake. His battle for control with a director puts other investors below the fold.
Google boycotts expose flaws of digital ads 23 Mar 2017 Verizon and AT&T joined other advertisers in pulling spending from Google over questionable content. A bigger issue is the opacity of the search giant and its fellow online duopolist, Facebook. By withholding money, companies are voicing doubts about digital ads’ effectiveness.
Gershon Kekst built an M&A legacy beyond his firm 23 Mar 2017 The spin doctor, dead at 82, advised corporate giants including Chrysler, Martin Marietta and KKR. Kekst is credited with getting public relations a seat at the boardroom table next to bankers and lawyers. The industry he created has spawned fierce competition for his own shop.
Spectrum auction end will commence another in M&A 21 Mar 2017 The sale of U.S. government bandwidth is nearing a close soon, lifting the quiet period for wireless operators like T-Mobile US and Dish. Add growing confidence of lighter regulation to the rapid convergence of the media and the conditions point to frenzied dealmaking.
George Osborne’s newspaper gig is lose-lose deal 17 Mar 2017 British politicians tend to pursue wealth after leaving high office. The former British chancellor is doing so at BlackRock, but has added a twist: he will edit London’s Evening Standard while remaining a member of parliament. The tawdry arrangement devalues both institutions.
BT’s Champions League win could be an own goal 6 Mar 2017 The UK telco’s 1.2 bln pound bid beat rival Sky to retain rights to Europe’s elite soccer tournament. It’ll help BT’s TV push. But justifying the 32 pct price rise requires heroic assumptions about the boost to subscribers elsewhere in the business.
WPP growth machine creaks 3 Mar 2017 The advertising group, despite being in more than 100 countries, expects revenue to increase less than global GDP in 2017. Losing a couple of big accounts like AT&T and VW help explain it. But the media business faces structural threats, and WPP’s margin growth has a ceiling.
Macau’s hot streak depends on mainland momentum 2 Mar 2017 Gaming magnate Sheldon Adelson was right: Macau did hit bottom last year. Casino revenue in the gambling enclave keeps rising, up 18 pct last month to a two-year high. But everything hinges on China's economic health. If strains worsen, Macau's fortunes could change fast.
ITV will struggle to fight solo in content wars 1 Mar 2017 The UK broadcaster’s revenue grew by 3 percent in 2016, as its production arm offset a bleak ad market. Low debt means ITV can add to its content locker, even after paying a special dividend. Stiff competition, though, suggests it might be better as target than acquirer.
Harry Potter conjures Japanese growth for Comcast 1 Mar 2017 The U.S. cable giant is paying $2.3 bln to buy out Goldman Sachs and other partners in Universal Studios Japan. The theme-park operator's success highlights a part of the Japanese economy where growing domestic consumption is no chimera. A boom in tourism helps too.
China’s soccer frenzy has early signs of fatigue 28 Feb 2017 A unit of LeEco has lost the rights to screen top Asian matches after missing a payment on a $100 mln-plus deal. The cash-strapped group has unique problems. Still, Chinese investors have poured record sums into the sport. Some others have probably over-stretched too.
PwC might have seen Oscars mixup coming 27 Feb 2017 The accounting firm presided over an error that saw the wrong movie initially named as best picture before "Moonlight" took the prize. PwC's audit work for numerous scandal-hit companies has shown how even established processes are no match for human sloppiness, buck passing and vacillation.
Hollywood’s Oscar glow could be dimmed by China 24 Feb 2017 Some $5 bln from the People's Republic has been pumped into U.S. movie production since 2014. The infusion has been a big help as studio margins shrink. A Beijing crackdown on financing presents a threat, however, and could mean more belt-tightening after Tinseltown's big night.
Vivendi problems even bigger at home than in Italy 24 Feb 2017 Shares in Vincent Bollore’s media group fell over 5 pct on news of an Italian probe into its Mediaset dealings. The wider problem is results showing weak pay-TV performance. A breakup of the conglomerate, which might improve matters, is the opposite of what’s likely to happen.
CNN could find prime-time slot at CBS 21 Feb 2017 Time Warner shareholders just approved AT&T's $85 bln purchase of the HBO owner. But U.S. regulators may still require concessions, perhaps including a sale of CNN. Even with a $9 bln price tag, a deal could make strategic and financial sense for Les Moonves at CBS.