Disney buying Netflix could be practical magic 30 Dec 2016 The $160 bln media firm is on the hunt for technology that will connect consumers directly with its movies and TV shows. It's also searching for a successor to boss Bob Iger. Buying the $50 bln Netflix, plus CEO Reed Hastings, would be a financial stretch but just might pay off.
Facebook and Google will swallow the ad world 27 Dec 2016 The two Silicon Valley titans are expected to account for nearly half the $270 bln budget for digital advertising in 2018. Even China's behemoth, Alibaba, is a distant third. Such dominance makes it harder and harder for starry-eyed startups to build sustainable businesses.
Harry Potter can add magic to predictive power 23 Dec 2016 As J.K. Rowling's boy wizard turns 20, it's a good time to recall how many agents and publishers rejected him. Similarly closed minds help explain why recent political upheavals have surprised many and economic forecasts are often wrong. A little more imagination goes a long way.
Chinese cinema will have a rosier plot in 2017 23 Dec 2016 Ticket sales will grow at their slowest pace in a decade in 2016, to a bit more than $6 bln. Blame lousy movies, lower subsidies from online sellers, and a fraud crackdown. The picture could brighten in 2017 as a promising slate of films wins back moviegoers and investors.
Mediaset shares on the up bit of a rollercoaster 21 Dec 2016 Silvio Berlusconi's group has soared in value on hopes of a takeover by Vivendi, controlled by Vincent Bollore. The French tycoon may still unlock a breakup value higher than the current share price. Yet his objectives aren't clear, and Mediaset may also face a big dip.
Yahoo boss has squandered her second chance 19 Dec 2016 Marissa Mayer took on a challenge in 2012. Failure shouldn't have spelled career disaster. But an ineffective turnaround, wasted deals, indecision over Alibaba and now two massive hacks change that. Like Chuck Prince or Carly Fiorina, Mayer will probably not get another CEO gig.
Sky shareholders are close to maximum altitude 15 Dec 2016 Some of the pay-TV operator’s investors grumble that independent directors were too eager to accept an 11 bln pound bid from Rupert Murdoch’s Fox. But Sky’s share price wasn’t obviously beaten up, and the premium is generous. A small bump is the best they can hope for.
Crown Resorts rushes for Macau casino exit 15 Dec 2016 James Packer's Australian casino giant gave up plans to spin off its share in Macau-focused Melco Crown. Instead, it is selling half the stake to partner Lawrence Ho for $1.2 bln. Plan A would have been better but Crown Resorts needs to distance itself from Chinese gambling fast.
Counterbid for Aussie lotteries is a long shot 14 Dec 2016 A quartet including Morgan Stanley, KKR and Macquarie has gatecrashed Tabcorp's near-$5 bln takeover of rival Tatts. The new approach is fiddly and has a questionable valuation. Still, a canny target could use this to wring a bit more out of Tabcorp.
Match.com owner’s pushy profile a real turnoff 13 Dec 2016 IAC Chair Barry Diller steamrollered Michael Eisner and other directors in his bid for eternal control with a new class of stock. The governance is abysmal even by Silicon Valley standards. CalPERS is suing. But the media mogul's power grab will encourage more shareholder abuse.
Bollore’s Mediaset raid looks oddly logical 13 Dec 2016 Vivendi, controlled by Vincent Bollore, bought 3 pct of Silvio Berlusconi’s Mediaset. There’s little sense in bidding for the whole, given weak synergies between Italian and French TV. It may pressure Berlusconi to settle outstanding litigation, though. And Mediaset is cheap.
Redstones take media M&A to new channel 12 Dec 2016 Sumner and his daughter Shari have nixed their proposal to merge CBS and Viacom. The Murdochs' bid for Sky and AT&T's deal for Time Warner have ignited the industry's animal spirits. That has raised the prospect that reuniting the two media firms would rob CBS of a better offer.
Murdoch’s Sky sequel shorter on political thrills 12 Dec 2016 Twenty-First Century Fox's 11 bln pound bid for the remaining 61 pct of Sky looks easier than its failed 2010 attempt. Media plurality is still an issue, but can be remedied. The deal will face political opposition, but the prospect of more post-Brexit investment should help.
The Murdochs’ new reach for Sky is well timed 9 Dec 2016 Twenty-First Century Fox has offered to buy the 61 pct of Sky it doesn't own at a 40 pct premium, valuing the European pay-TV group at 18.5 bln pounds. Given industry consolidation like AT&T's plan to buy Time Warner, Fox has a far better chance than in 2010 of doing the deal.
Viewsroom: What’s at stake in Trump vs. China? 9 Dec 2016 The U.S. president-elect upended decades of diplomacy by taking a call from Taiwan's leader. But some U.S. companies will welcome his stance. And China has much to lose from any escalation. Also: Italy PM Renzi gets his marching orders. And there's no easy move to monetize chess.
China cracks capital whip on Macau ATMs 9 Dec 2016 The government reportedly halved the cash tourists can withdraw using UnionPay cards in the gambling mecca. That hammered casino operator stocks and may derail the island's economic recovery. It also illustrates the utility of a debit card monopoly in stemming capital flight.
Digital ad dominance has TV in crosshairs 8 Dec 2016 Google, Facebook and their ilk will as of next year control more of the $500 bln advertising market than broadcasters. Along with the rise of ad-free series from Netflix and Amazon, it'll push down the cost of TV commercials, leaving traditional program makers in a jam.
Antitrust probe will hasten Mad Men decline 7 Dec 2016 The U.S. Justice Department is investigating whether advertising firms rigged bids in the $5 bln commercials industry. The business is already under pressure from Facebook and Google and their own clients. The whiff of more malfeasance is further evidence the model is broken.
Daily Mail submits a vague New Year’s resolution 1 Dec 2016 The UK tabloid's parent wants to slim down a portfolio which spans media, events, education, and property information. Weak advertising makes a new svelte form a priority. But if boss Paul Zwillenberg doesn't offer more detail the pledge could end like many post-Christmas diets.
MBK takes a $1.3 bln wide swing at golf in Japan 30 Nov 2016 The South Korean buyout firm has bid for golf-course operator Accordia. This business was a good post-bubble investment for Goldman Sachs, and then a disappointing one for public investors. A full price now makes it hard to see MBK teeing up a high return.