Publishing

Sorrell fan club can live with WPP scandal

12 June 2018

The former CEO left the ad group after a probe into alleged misconduct, which he denies. Institutional investors have since stumped up funding for a new venture, and handed Sorrell a controlling share. That suggests they care more about returns than his personal reputation.

Daily Mail editor picks shrewd time to move on

7 June 2018

Paul Dacre is leaving as editor of the Brexit-cheering paper after 26 years. His tenure saw the Mail’s top line shrink at a much slower rate than rivals like the Sun. A slowdown this year, and the parent group’s downbeat financial targets, could have imperilled that record.

Springer’s IPO struck down by multitude of sins

9 May 2018

The German publisher postponed a $4 bln offering. The stable, growing business should have been an easy sell. High debt, low liquidity and an accounting squabble were turnoffs. With interest rates rising, and markets more volatile, investors are less willing to take a risk.

Nature’s $5 bln IPO has good chance of flourishing

3 May 2018

The German science publisher is selling shares in a Frankfurt listing. A heavy debt load and a narrow focus on academic publishing are drawbacks. But Springer Nature is more cheaply valued than peers like RELX and will benefit if open-access science journals grow more dominant.

UK tabloids’ dire top line strengthens M&A case

3 May 2018

Sales are down 9 pct this year at Trinity Mirror, whose acquisition of Express newspapers is under the regulatory microscope. Buying rivals and slashing costs seems the only viable option for the Daily Mirror parent. Blocking the deal would leave the media sector on the sickbed.

Activist tests Lagardere disdain for shareholders

2 May 2018

Amber Capital is pushing for new board members at the $3.7 bln French group. That’s largely symbolic since a funky structure gives boss Arnaud Lagardere control. But the pressure is useful at a time when the unwieldy company is thinking of selling its peripheral media businesses.

Publicis shows WPP benefits of smooth succession

19 April 2018

The French group last year bumped longstanding boss Maurice Lévy up to the chairman’s suite. New broom Arthur Sadoun has, under Lévy’s guidance, revamped the strategy and revived growth. That is a lesson for its UK rival, which lost CEO Martin Sorrell without any obvious heir.

Apple acquires goodwill of flag-waving publishers

13 March 2018

The $925 bln iPhone maker is buying a digital subscription service for magazines like Rolling Stone originally founded to counter Apple’s onerous terms. The tech giant gets to play white knight to the challenged print industry, while buttressing its attempts to grow fee income.

Lagardère portfolio needs heavy editing

9 March 2018

Shares in Elle magazine’s publisher fell 7 percent after a sharp drop in 2017 free cash flow. Boss Arnaud Lagardère is promising disposals. That may be necessary to prop up future dividend payments. He only deserves credit when he reveals how much will be sold and at what price.

Thomson Reuters deal puts financial over risk

30 January 2018

The Canadian group is in talks to sell 55 pct of its data and analytics business to Blackstone at a $20 bln valuation, including debt. That implies a market discount for the remaining legal and tax arms. Carving up the company may end a run of lagging peers’ stock performance.

Pearson investors need their homework checking

17 January 2018

The $8 bln education publisher’s revenue has stopped cratering after it stemmed a decline in sales of U.S. textbooks. The relief may be temporary. Colleges are shifting to cheaper course materials and a price war is looming. That is hard to square with a rich valuation.

Review: “The Post” gets more relevant by the hour

12 January 2018

Steven Spielberg's cinematic retelling of the publication of the Pentagon Papers feels rushed at times, and the nostalgia for a bygone newspaper business is maudlin. But such flaws are easy to forgive as current events emphasize the necessity of a free – and profitable – press.

Bannon woes gift Rupert Murdoch a Happy New Year

5 January 2018

Fresh from his Disney deal, the media mogul may benefit from a new book about White House dysfunction. The exposé is ripping apart the alliance between President Trump and his former aide and Breitbart News boss. That may hobble a major rival just as Murdoch launches New Fox.

Can carmakers think outside the self-driving box?

19 December 2017

Renault is investing in a magazine publisher, targeting the extra leisure time people will have in driverless cars. Breakingviews imagines the pitch from an M&A banker eager to encourage auto executives to buy other autonomous-vehicle beneficiaries, from music to alcohol. Sincerely.

Disney is Death Star for Europe’s telco media fad

14 December 2017

The "Star Wars" producer’s acquisition of Fox includes pay-TV business Sky, giving it more firepower and better content. European telecom groups like BT are struggling to justify investment in sports rights and content. Disney’s arrival may force some to make a necessary retreat.

Review: Firm ideas for a world of soft assets

1 December 2017

Modern economies are increasingly built on intangible factors like research and development and software. "Capitalism Without Capital" shows how this trend contributes to problems like rising inequality. But it stops short of tackling the rising dominance of big tech groups.

Slim chance of Kochs taking over Meredith media

28 November 2017

The campaigning U.S. billionaires are investing $650 mln in Meredith so the publisher can buy Time Inc. The Kochs get prefs with an 8.5 pct dividend but no board seats. Like Carlos Slim’s loan to the New York Times, the likely returns look more financial than political.

China Literature must summon army of Harry Potters

10 November 2017

Tencent’s online publishing arm has 6 mln writers peddling pulp. To justify a $12 bln valuation after a first-day pop, it has to find lots of J.K. Rowlings among their ranks, then conjure value by transmuting their tales into hit films and games. That reads like fantasy fiction.

Hong Kong’s IPO market is turning Chinese

8 November 2017

China Literature smashed the chandeliers in its $1.1 billion Hong Kong debut, soaring more than 80 pct in early trade. As local punters swarm into mainland tech, the new-issue market is mimicking distortions common in China. For the exchange, it's a good problem to have.

Tencent’s books are less gripping than its games

24 October 2017

Publishing unit China Literature wants to list in Hong Kong at a value of up to $6.4 bln. Sales and earnings are taking off. But e-books are less lucrative than online games, with a smaller market and a shorter track record. This does not merit a valuation to match its parent.