Gannett’s higher bid lays waste to Tribune defense 16 May 2016 The owner of USA Today has upped to $490 mln its offer for the L.A. Times publisher. It’s a 99 pct premium and a better multiple than virtually all but the most outlandish recent newspaper deals have commanded. Stalling Tribune Chair Michael Ferro has little choice but to engage.
Eurovision puts Ukraine in helpful spotlight 16 May 2016 Kiev’s pride in winning Saturday’s annual croon-fest has a downside: it has to pay to host next year’s. Russia has pointed out Ukraine has a ropey economy and a war in the east. The experience of former hosts, though, suggests there could be a return on the investment.
Wanda’s $6 bln reshuffle reveals China movie hype 16 May 2016 Wang Jianlin’s Chinese cinema chain is buying some of the tycoon’s assets including recently acquired Legendary Entertainment. Filings show the Hollywood studio lost $556 mln last year. Fantastical valuations fuelled by China’s box office boom are far ahead of financial reality.
Facebook better off liking title of top media firm 13 May 2016 The $340 bln social network denies skewing news to the left on its site, saying algorithms and rules minimize bias. Like all purveyors of stories, though, the company is finding points of view can’t be helped. It’s time CEO Mark Zuckerberg embraced his role as a media boss.
Dish short fund has investor appeal – at a price 12 May 2016 Kerrisdale Capital has raised $100 mln to bet that the value of Charlie Ergen’s $22 bln satellite-TV concern will plummet. The thesis is plausible and investors crave ideas that could pay off big. But one-stock funds are also “heads we win, tails you lose” setups for managers.
Ultimate Fighting punches up value of live sports 11 May 2016 The U.S. promotion firm is reportedly seeking up to $4 bln for its mixed martial arts contests, with China’s Dalian Wanda viewed as a likely buyer. That seems high for a relative upstart in the world of pro athletics. But huge audiences for real-time events may justify the price.
Disney could use a double dose of cable magic 11 May 2016 The $170 bln media firm missed second-quarter profit expectations, as revenue growth stalled at networks ESPN and A&E. The twin disappointments highlight the need to figure out shifting TV-viewing habits. Add the search for a successor, and CEO Bob Iger’s job looks even tougher.
Altice’s wily Cablevision math adds up to trouble 10 May 2016 Patrick Drahi’s telecom group told investors it can cut $900 mln in costs to justify the $18 bln U.S. cable acquisition. To appease New York officials worried about service, Altice is using a shorter timeframe to tout a $450 mln sum. Both constituencies will end up disappointed.
Baidu selloff understates long-term health risks 10 May 2016 Regulators have ordered China’s top search engine to rein in healthcare advertising after a scandal. That could knock as much as a fifth off earnings. Investors who have marked the shares down by 13 pct so far may be underestimating the broader impact on Baidu’s business model.
Sumner Redstone ruling takes drama back to Viacom 9 May 2016 A California judge threw out a lawsuit filed by his ex-girlfriend that captivated Hollywood and Wall Street alike. The media mogul’s bizarre deposition confirmed the very poor health many suspected. Even so, he keeps control of his empire – half of which is ailing badly, too.
Sard Verbinnen sale burnishes its deal credentials 5 May 2016 The crisis and merger PR firm is unloading 40 pct of itself to a buyout shop. Word leaking out with ugly details about unhappy partners hardly showcases its spin services. A valuation of nearly eight times what the founders paid a decade ago, however, suggests a certain M&A nous.
Hulu live-streaming plan risks ire of cable giants 4 May 2016 The online video service backed by the likes of Disney and Fox may offer consumers something that’s a bit like a cable package. It’s another way to bypass distributors, but it could also hand the content makers’ biggest customers more sway in crucial fee negotiations.
Retrograde governance will cost Facebook little 3 May 2016 The social network’s new non-voting shares have been challenged in court. A similar spat at Google ended with the search giant paying shareholders just $522 mln – 0.15 pct of its market cap. An equivalent result at Facebook would entrench boss Mark Zuckerberg’s control cheaply.
TV’s green shoots will wither from digital heat 2 May 2016 Advertisers may commit $19 bln to U.S. prime-time shows – the latest sign of big money flowing to broadcasters such as CBS. Short-term quirks account for much of it, though. Madison Avenue’s love affair with the likes of YouTube and Facebook looks more durable in the long run.
TV tech deal is must-see M&A 29 Apr 2016 Rovi’s $1.1 bln purchase price for digital-recording pioneer TiVo should mostly be covered by $100 mln in expected cost savings. Stock rises are rarer for corporate buyers as mergers have become financially irrational. This one suggests there can still be another way.
Comcast’s $3.8 bln Shrek deal needs some make-up 28 Apr 2016 The broadcaster’s NBC Universal unit is paying a 50 pct premium for DreamWorks, which has been losing money for two years. Cost cuts, recouped revenue and more movies may justify the price for Jeffrey Katzenberg’s studio. But Comcast is leaving its investors in the dark.
Comcast’s DreamWorks bid turns up heat on Disney 27 Apr 2016 The media and cable firm may offer $3 bln for the maker of “Shrek” and other animated films. The small but significant addition could help CEO Brian Roberts’ company compete with the Mouse, which it tried to buy in 2004. It might also ease the pain of losing Time Warner Cable.
Yahoo’s bow to Starboard signals inevitable sale 27 Apr 2016 The troubled internet firm has agreed to appoint four of the activist investor’s nominees to its board. Starboard founder Jeff Smith’s addition to the committee exploring a deal is the most notable development. A slow and desultory process just received a long-overdue kick.
Twitter squandering users’ value to advertisers 26 Apr 2016 The $12 bln micro-blogging network missed quarterly-revenue estimates as ad spending lagged expectations. Boss Jack Dorsey’s plans for streaming video and targeting celebrities might pique Madison Avenue interest. But the advantage of an influential audience is slipping away.
Newspaper deal would solve Tribune’s woes 25 Apr 2016 USA Today owner Gannett’s $815 mln unsolicited offer to buy the publisher of the LA Times doesn’t just make financial sense for the buyer. It would also allow Tribune shareholders to escape flatlining revenue at a headline-grabbing 63 percent premium to its current market value.