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.
Disney aims to repeat luck of Star Wars delay 22 Jan 2016 The seventh movie in the franchise, released last month, was originally planned for mid-2015. With “The Force Awakens” shattering box-office records, it offers a new Hollywood roadmap. Having stumbled upon a magic formula, the Mouse House is delaying episode eight, too.
Time Warner breakup has gone far enough 21 Jan 2016 Boss Jeff Bewkes has dismantled the media conglomerate, spinning off AOL, Time Warner Cable and Time Inc. Shrinking further by, say, separating HBO lacks a compelling financial rationale. The real question is when Time Warner will again attract a suitor.
Pearson buys some time with latest shakeup 21 Jan 2016 The educational publisher’s shares gained 10 pct on the back of a big restructuring plan despite a warning that earnings would suffer this year before stabilising at the end of 2017. The post-FT reality check is welcome, but it’s far from clear Pearson can return to growth.
Viacom activism is smarter than it looks 19 Jan 2016 Another unhappy shareholder wants a governance revamp at the $16 bln U.S. media company. With Sumner Redstone controlling 80 pct of the vote, Eric Jackson’s campaign seems quixotic. But Redstone won’t be around forever, and even modest change now could get the ball rolling.
Review: "Billions" delivers modest TV-time return 15 Jan 2016 Wall Street finally gets a series for itself with an over-the-top clash between a hedge-fund boss and a federal prosecutor. Hard-to-depict high finance isn’t helped by hammy dialogue and storylines. It’s just enough fun, though, for a bros’ “Dynasty” meets “Desperate Housewives.”
Al Jazeera floored by oil, ratings double-whammy 13 Jan 2016 The broadcaster is shutting its U.S. cable news unit three years after paying $500 mln for a network. High-profile lawsuits added to viewer skepticism and low ad revenue. But the sharp drop in the oil price may have been the final straw for its Qatar government backers.
Behavioral economics wins $1.5 bln U.S. lottery 13 Jan 2016 The biggest-ever jackpot for a single ticket-holder hangs in the balance. State officials helped engineer the Powerball frenzy by tapping into the sorts of theories advanced by Nobelist Daniel Kahneman and others. It takes more than a dollar and a dream to woo punters these days.
Wanda builds an empire Hollywood can only dream of 13 Jan 2016 China’s richest man is buying a U.S. studio for $3.5 bln. His Dalian Wanda group and rivals like Alibaba Pictures are investing in all sorts of film businesses. Such vertical integration - banned in the United States - shows the allure of one of China’s fastest-growing sectors.
Playboy Mansion is Hefner’s latest glossy tease 12 Jan 2016 The publishing group that owns the famed Los Angeles estate is asking an inflated $200 mln, and wants a lifetime lease for its founder. When the 89-year-old took the company private in 2011, understating the property’s value left him exposed. Now Hefner is swinging the other way.
Kuoni post-holiday glow explains would-be suitors 12 Jan 2016 Bid interest suggests the $1.1 bln Swiss holiday group was right to get out of traditional tour operating. Its visa processing business looks promising. A buyer wouldn’t get much of a return at current prices, though Kuoni’s potential may not yet be fully visible.
Bowie’s financial legacy is actually Hunky Dory 11 Jan 2016 The rock legend’s 1997 catalogue securitisation prompted a host of securities backed by unusual assets. Music industry-specific issues meant Bowie’s own bonds were later downgraded. But despite a global financial crisis, the wider field of esoteric ABS has a genuine future.
South Korean deal offers hint at Facebook’s future 11 Jan 2016 Kakao, owner of the country’s main chat app, is buying top music streamer Loen for $1.6 bln. Asia’s big messaging outfits are all moving into content and e-commerce to cut their reliance on ads and games. The same logic could hold for Facebook’s Messenger and WhatsApp services.
Sumner Redstone loosens muzzle on Viacom owners 8 Jan 2016 Viacom investors will get a vote on whether to give all shareholders a voice. With Redstone controlling 80 pct of the $16 bln media company’s ballot, the measure from a Catholic charity has a snow cone’s chance in Hades. But the results could embolden minority shareholders.
Netflix global sprawl adds risk as well as growth 6 Jan 2016 The $50 bln video-streaming company is launching in India and 130-odd other countries. Netflix has 70 mln members in its current 60-plus markets, but growth is slowing. The rollout may allay that worry, but it’s also costly - and it takes profit off the table for a while.
Managerial competence makes the difference in 2016 5 Jan 2016 Markets are getting choppier. Capital is becoming more expensive in the world’s largest economy. Globalization is taking big knocks. Economic growth is middling. Good managers will distinguish winners from losers as much as valuable assets do from lousy liabilities.
Wanda’s Hollywood ambitions show legendary savvy 5 Jan 2016 The Chinese entertainment group is adding the U.S. studio behind “Jurassic World” to a portfolio that includes a Spanish soccer team and Ironman races. Buying Legendary Entertainment should help fill seats in its cinemas globally – and perhaps even bolster China’s soft power.
Lost decade demands Viacom get with the programs 4 Jan 2016 The MTV owner’s shares have barely budged since it split from CBS 10 years ago. In that time, boss Philippe Dauman oversaw some $21 bln in stock buybacks, more than Viacom’s current $17 bln market value. It’ll take greater creativity to rejuvenate Sumner Redstone’s networks.