Yahoo’s goodwill flashes warning sign for bidders 18 Jul 2016 The once-mighty internet firm took a near $500 million impairment charge on its $1 bln acquisition of Tumblr. Boss Marissa Mayer's likely last earnings call serves as a red flag for potential buyers: a similarly dismal writedown awaits you, too.
Italian newspaper war has “man bites dog” ending 18 Jul 2016 The battle for Corriere della Sera publisher RCS has delivered a surprise outcome: a share-based offer beat a rival cash bid, and the old guard of Italian corporate finance, led by Mediobanca, got a bloody nose. Italian corporate finance is changing, but remains no less complex.
Tencent’s Chinese Spotify tribute misses key note 15 Jul 2016 The web giant is merging its music-streaming service with a local rival to create a market leader worth $6 bln. It's part of a costly and aggressive push into online content. But unlike its Western role model, Tencent lacks paying listeners. Profits look out of tune for now.
Nintendo’s augmented shares reflect new reality 14 Jul 2016 The runaway success of the Japanese group's Pokemon app has sent its shares up more than 50 pct. That's a big vote of confidence in Nintendo's future mobile games, too. To justify the move, EBITDA will need to top 250 bln yen by 2018-2019 - more than double previous forecasts.
AMC-Odeon deal is both trailer and closing credits 12 Jul 2016 The U.S. cinema chain is buying its European peer for $1.2 bln. The deal ends Odeon's epic stint in private equity hands. It's a further sign of the global ambitions of Wanda, AMC's Chinese backer. And it could be the first of many post-Brexit deals by dollar-based buyers.
Pokemon GO hints mixed reality beats virtual kind 11 Jul 2016 The mobile game where users capture imaginary creatures in the real world is a smash. Within a week of launch GO may have more users than Twitter. Entirely computer-simulated worlds get the attention, but overlaying the digital on the physical may be the disruptive killer app.
Viacom CEO has last scene to shoot before his exit 11 Jul 2016 Philippe Dauman has overstayed his welcome at Sumner Redstone's empire. But his effort to sell a stake in Hollywood studio Paramount is worth playing out. Handing over a $4 billion windfall, and gaining access to China's booming movie market, would leave Viacom better off.
UFC’s $4 bln sale falls short of a sports knockout 11 Jul 2016 The mixed martial arts group is being bought by the talent agency behind Matt Damon and Gisele. Though finances are hard to come by, WME-IMG appears to be paying a higher valuation than WWE or Manchester United fetch. The NFL and owners of the New York Knicks are still champs.
Cash could trump complexity in Corriere bid 11 Jul 2016 The two camps bidding for Italian media group RCS have both upped their offers. Cairo is offering a bit more for the owner of Corriere della Sera, but mostly in highly-valued stock. In volatile markets, investors may choose a less complex bid headed by Andrea Bonomi over value.
Nintendo’s big Pokemon boost depends on Asia 11 Jul 2016 Investors have added $7.5 bln to the Japanese company's market value after its Pokemon GO mobile game proved a smash hit in the United States. Conquering Japan is the next challenge. It all bodes well for transferring Nintendo characters like Super Mario onto mobile devices.
Stars align for a new Sky takeover attempt 7 Jul 2016 The drop in the pound could tempt Rupert Murdoch’s Fox to bid for the 61 pct it doesn’t own of the UK pay-TV operator, after failing to do so in 2011. It would leave Fox investors more exposed to Europe. Still, if the Murdoch clan is bullish, there’s no time like the present.
Comcast and Netflix put growth ahead of gripes 6 Jul 2016 The video-streaming service helped scupper the cable provider's bid for Time Warner Cable. Now Comcast is putting its nemesis on its set-top box - with access to 22 mln potential subscribers - as it tries to build a one-stop video shop. Those are good reasons to bury the hatchet.
Apple skips a few beats in streaming battle 1 Jul 2016 The $535 bln iPhone maker may be mulling a purchase of Tidal, rapper Jay Z's online music service, to bolster its own. Meanwhile Spotify says Apple is harming it by rejecting an app upgrade. Apple has the clout to fend off rivals, but adding Tidal won't help get its rhythm back.
Skullcandy frenzy only mild music to investor ears 1 Jul 2016 The headphone maker's IPO in 2011 attracted considerable hype, fetching a valuation of over two times revenue. Since then, sales have stalled and profit margins shrunk. Despite at least three potential suitors now, long-term Skullcandy shareholders will be singing the blues.
Lions Gate-Starz mashup is classic Malone 30 Jun 2016 The media mogul's fingerprints are all over the "Hunger Games" studio's $4.4 bln deal to buy the pay-TV operator: a complex structure, new non-voting stock and more influence for John Malone at Lions Gate. Starz shareholders, receiving a lowish premium, shouldn't be surprised.
Rough ride ahead for the descendants of Mad Men 29 Jun 2016 A damning report backed by P&G and other brand advertisers combined with a potential pullback in marketing during uncertain times spells trouble for big agencies. With revenue per employee slowing at stalwarts like WPP, job cuts on Madison Avenue look inevitable.
Facebook’s indie owners send upside-down message 22 Jun 2016 Shareholders not named Mark Zuckerberg gave more likes than frowny faces to just three members of the board. Puzzlingly that included Gawker-hunter Peter Thiel and not key executives like COO Sheryl Sandberg. It’s a head-scratcher probably explained by investors ticking boxes.
Bollore’s Italian playbook won’t work at Ubisoft 21 Jun 2016 Vivendi, controlled by the French tycoon, owns over 20 pct of the video game maker and wants board seats. That tactic worked at struggling Telecom Italia, but Ubisoft is a different proposition whose founding family won’t go down without a fight. Minorities shouldn’t either.
CBS-Viacom reunification doesn’t add up 20 Jun 2016 The idea of the $24 bln broadcaster buying its MTV-owner sibling is going around 10 years after Sumner Redstone separated them. The split never made sense and Viacom’s weak performance has brought boardroom discord. But the likely benefits don’t justify CBS paying a premium.
Viacom boss may soon pull gilded ripcord 16 Jun 2016 Media mogul Sumner Redstone says he has lost trust in Philippe Dauman, putting the CEO’s future at the MTV owner in doubt. If cut loose, he’d leave with an $80 mln exit package that rivals those of Michael Ovitz and Carly Fiorina. Corporate payouts for failure stubbornly linger.