WWE and UFC merger mania is quite the production 6 Apr 2023 The wrestling heavyweight has agreed to merge with Endeavor’s mixed martial arts franchise in a $21 bln deal. In this Viewsroom episode, Breakingviews columnists discuss why the transaction makes sense strategically, but the financial logic is contorted.
Fox would be daft not to settle defamation lawsuit 3 Apr 2023 A judge has ruled it’s “crystal clear” that claims aired by Rupert Murdoch’s cable news outlet about Dominion voting machines were false. The $1.6 bln case now heads to a jury, where damages could be even higher. Long-running costs from News Corp’s scandal are a cautionary tale.
Hong Kong sharpens fine art edge over Singapore 24 Mar 2023 After a record $1.7 bln of turnover in 2021, ructions in China cooled the city’s auction houses last year. But Art Basel is crowded with Chinese collectors this week. As Hong Kong competes with its southern rival to serve the wealthy, its art market is a potent advantage.
Bolloré buyback delays possible Vivendi M&A action 15 Mar 2023 The French tycoon’s eponymous holding company is buying back 10% of its shares, potentially boosting the family’s control. The outlay drains cash that could have been used to boost its stake in media group Vivendi. But that’s still a logical endpoint for Bolloré and his children.
Hollywood faces a content reckoning 14 Mar 2023 Netflix and other streaming giants are refocusing on profitability over subscriber growth. In this episode of The Exchange, Vania Schlogel, an investor in Brad Pitt’s production firm, explains what challenges lie ahead for those selling TV shows, movies and music rights.
‘Billions’ network holds more value for Paramount 10 Mar 2023 Boss Bob Bakish snubbed a $3 bln approach for Showtime and instead plans to fold it into the company’s flagship streaming service. It’s a bold call after last year’s $1.8 bln operating loss. There is promise, however, in getting bigger in an industry due to consolidate.
Capital Calls: Carlsberg CEO exit 7 Mar 2023 Concise views on global finance: Asia will be a key battleground for the $21 bln Danish brewer’s next boss.
Buying WWE calls for intense financial contortions 3 Mar 2023 After making a dramatic return to the ring, founder Vince McMahon is eyeing a possible sale of his worldwide wrestling empire. Potential contenders for the $6.2 bln company include UFC owner Endeavor. The numbers and ownership structure, however, make a deal hard to stack up.
Spotify’s next act: hosting ad lollapalooza 24 Feb 2023 The music service attracted activist ValueAct as founder Daniel Ek starts to whack costs. Yet rather than cutting its way to profit, Spotify could stem its losses by nabbing a quarter of the streaming and podcasting ad pie. It’s a tough but plausible performance to pull off.
Movie theater chain’s spotlight will stay dark 23 Feb 2023 A Pennsylvania pension fund is suing AMC over a decision to issue preferred stock without a vote. The CEO speaks of empowering investors, an irony given his decisions. And ultimately he is missing the point – AMC’s business is too far gone, and will likely need restructuring soon.
K-pop showdown amplifies shareholder voices 22 Feb 2023 A hostile takeover of South Korean music label SM by rival Hybe, which manages global boy-band sensation BTS, is heading to a ballot. The fierce saga exposes corporate governance woes that plague Asia, but also some unlikely progress. Whichever side prevails, investors win.
Soccer’s new M&A binge will mostly benefit players 17 Feb 2023 Qatari investors are planning a $6 bln Man United offer, according to Bloomberg, while billionaire Jahm Najafi may swoop on Tottenham. Clubs are losing more of their revenue to player wages and transfers. That will only get worse as more rich owners chase scarce sporting talent.
Comcast poised to spark streaming consolidation 15 Feb 2023 Hulu’s minority owner is a logical buyer for the rest after controlling partner Disney indicated it’s open to selling. The cable operator’s roots are in video distribution, and too many Netflix-wannabes abound. Boss Brian Roberts could kick off an overdue industry reckoning.
Malone’s Vodafone bet may take years to pay off 14 Feb 2023 Liberty Global bought 4.9% of the telco conglomerate, joining industry rivals Abu Dhabi’s e& and Xavier Niel. Chairman John Malone knows the $31 bln company well and may hope to influence any breakup. A 2015 investment in UK broadcaster ITV shows he’s willing to sit and wait.
Lyft is second horse in a one-horse town 10 Feb 2023 Mounting losses and a 35% plunge in the ride-sharing firm’s stock price are signals of how far Lyft is falling behind main rival Uber. The two are locked in a race where winning depends on cheaper fares or better-paid drivers. No wonder investors think two is a crowd.
Capital Calls: Adidas kitchen sink 10 Feb 2023 Concise views on global finance: Shares in the sportswear maker fell 11% amid forecasts of a high-single-digit decline in sales in 2023.
Bob Iger kills just one bird with well-aimed stone 8 Feb 2023 Disney’s CEO unveiled sweeping cuts across the $200 bln company, including 3% of the workforce. Lifting a sagging profit margin and restoring the dividend will reassure many investors but probably not pushy Nelson Peltz. If anything, the shake-up helps his case to join the board.
Capital Calls: AI lessons, Robots, Streaming wars 8 Feb 2023 Concise views on global finance: Textbook rental company Chegg becomes an early victim of ChatGPT fears; a short supply of U.S. workers makes automation look even more appealing; Warner Bros Discovery flips the script on its deal logic and will keep HBO Max as a separate service.
Debt is poor fix for Italian soccer’s malaise 8 Feb 2023 Having rejected private equity suitors, Italy’s top football league may turn to Wall Street banks to borrow up to 1 bln euros. The cash may give Serie A’s ailing TV rights business extra time. But without a governance shake-up, gorging on debt would extend its losing streak.
John Malone prepares for a victory lap 1 Feb 2023 The mogul’s labyrinthine Liberty Media is preparing another spinoff and fresh tracking stocks. Such financial razzmatazz hasn’t always benefited investors. In this case, isolating the Atlanta Braves and Formula One should generate value as the 81-year-old rides into the sunset.