New Vivendi risks slipping into bad old habits 19 Feb 2016 The French media group has morphed into a music and pay-TV group and returned 4 bln euros to investors in 2015. But a remaining cash pile of 6.4 bln euros carries M&A risk, as the bid for video-game firm Gameloft shows. Its adventures in Italy may suck up more cash too.
Time for cable firms to unlock box controlling TVs 18 Feb 2016 America’s telecom watchdog may let viewers swap old set-top devices for cheaper options from Google, Apple and TiVo. The likes of Comcast will resist losing dominance of a $20 bln market, but creating a wider variety of video offerings makes this a consumer battle worth fighting.
Dish has lost its signal with investors 17 Feb 2016 More bad results are expected from the $20 bln pay-TV company as it loses customers. Dish’s stock has fallen by 40 pct in the last year, underperforming cable rivals. Enigmatic boss Charlie Ergen could help by breaking his silence on plans for a storehouse of lucrative airwaves.
Baidu video buyout comes with multiple warnings 15 Feb 2016 The CEO of China’s top search engine is involved in a $2.8 bln bid for the company’s streaming site. Offloading the loss-making unit will boost margins, but selling to the boss raises conflicts of interest. Without more detail, investors cannot judge whether the offer is fair.
Pandora faces lonely search for a partner 11 Feb 2016 The internet-radio service is reportedly up for sale. Q4 results show revenue growth slowing, however, suggesting potential matches are few and far between. Add stiff competition from Apple and Spotify and limited access to music, and the company seems destined to remain alone.
Twitter lacks love more than numbers in its flock 10 Feb 2016 Users at the $10 bln social-media platform have topped out at about 320 mln. Getting 25 pct more dollars out of each in the fourth quarter than the third isn’t bad. CEO Jack Dorsey wants a better user experience, but he also needs to turn more of his pricey R&D into revenue.
U.S. media titans tangled up in cord cutting 10 Feb 2016 Disney and Time Warner improved their quarterly bottom lines but keep getting hammered over the idea that people are dumping their pay-TV subscriptions. Laggards like Viacom are suffering even more. Steady payouts from cable operators look shaky. A digital reality is setting in.
Mike Bloomberg’s billions may not buy White House 9 Feb 2016 An independent run by the media mogul and former mayor would be well-capitalized by his own personal fortune. Solid financial backing has not, however, been a good indicator of success for Jeb Bush, Hillary Clinton and others. This race is dulling the power of money in politics.
Tech investors bear up for painful reality check 8 Feb 2016 LinkedIn plummeted 44 pct after cutting this year’s growth outlook. Rivals were also hit. Worsening prospects are finally prompting shareholders to question the rosy adjusted-earnings scenarios often touted for tech companies. With valuations still high, more red ink lies ahead.
Super Bowl 50 could mark peak sports TV 5 Feb 2016 More than 100 mln people are due to watch the Panthers and Broncos battle for supremacy on Sunday amid $10 mln-a-minute ads. Live sports are pivotal for broadcasters but the $18 bln price tag is getting harder to justify. As cord cutting accelerates, the chalice will be poisoned.
Viacom’s boardroom drama belongs on reality TV 4 Feb 2016 CEO Philippe Dauman replaced Sumner Redstone as chair of the $18 bln media firm, thwarting the controlling stockholder’s daughter, Vice Chairwoman Shari Redstone. She wanted an independent leader. Investors may not like the soap opera, but it has potential as a much-needed hit series.
CBS board changes herald Viacom game of thrones 3 Feb 2016 Sumner Redstone is out as chairman of half his $40 bln empire, with the job going to the CEO. That swaps one kind of poor governance for another but at least Les Moonves has done well for shareholders. A double grip on power at Viacom may not come so easily to Philippe Dauman.
Comcast proves it doesn’t need Time Warner Cable 3 Feb 2016 Not even a year has passed since Brian Roberts’ $45 bln bid for his cable rival blew up. With a 9 pct increase in quarterly revenue and a surprising glimpse of cord-cutting defiance with 89,000 new customers for video, Comcast’s pace is picking up despite industry consolidation.
Yahoo keeping all of its bad options open 3 Feb 2016 The internet firm topped a $4.5 bln Q4 writedown with plans to pursue “strategic proposals” for its search and ad operations. CEO Marissa Mayer also mentioned cutting staff, closing offices and jettisoning products. Selling the core business is still the best of lousy choices.
Online poker CEO gives shareholders an out 1 Feb 2016 The boss of Amaya, owner of PokerStars and other gambling sites, is offering to take the company private for up to C$4.4 bln. Though the shares have fallen by half over the past year, there’s a 40 pct premium in the woolly bid. It could pay to cash out now in case it’s a bluff.
Murdoch’s second season could be good for Sky 29 Jan 2016 Four years after resigning at the height of a phone-hacking scandal, James Murdoch is back as chairman of the pay-TV group. That may rattle minority investors, but Murdoch has proven himself. It would be an odd move if Fox planned to buy the 61 percent of the company it doesn’t own.
Twice-jilted Meredith may yet find merger love 27 Jan 2016 The U.S. magazine and TV group lost its $2.4 bln deal with Media General, which has run off with Nexstar. A marriage to Time Inc, planned before Time Warner spun it off, collapsed earlier. It has been solo for nearly two years, so there’s a chance to rekindle the relationship.
Viacom CEO’s pay thumbs nose at shareholder value 25 Jan 2016 Philippe Dauman took a 30 pct bonus cut last year as the media company struggled. But the stock he got to renew his contract more than made up for it. With revenue, earnings and shares all falling, his comp is an apt example of the tin-eared nature of Sumner Redstone’s empire.
Hollywood can give virtual reality its star power 25 Jan 2016 Facebook’s Oculus Rift just went on sale for $599. As with most new technology, it’ll mainly appeal to video gamers and other nerdy enthusiasts. Rupert Murdoch’s Fox buying a stake in a Silicon Valley augmented-reality firm offers a glimpse of what it’ll take to woo the masses.
Twitter’s permanent revolution invites interlopers 25 Jan 2016 Four top executives have stepped down, according to CEO Jack Dorsey, via a tweet. Management turmoil hasn’t done any favors for the $12 bln media business. With the stock below its IPO price and Dorsey also running Square, a takeover could spare Twitter a fate like Yahoo’s.