Publishing

Gannett’s dilemma is picking lesser of two evils

14 January 2019

A rival publisher wants to buy the USA Today owner for $1.6 bln. Gannett has repeatedly sliced costs and staff, to the detriment of news. MNG’s script is more of the same – and cuts are likely to be deep to justify a 23 pct premium. The public interest probably loses either way.

Globalization gives new lease on life to Fortune

9 November 2018

Meredith is selling the business magazine to a Thai executive for $150 mln. Chatchaval Jiaravanon reckons its rankings, CEO profiles and mover-and-shaker events will play well in Asia. It’s an ironic twist for the U.S. publication with Beijing and Washington fighting a trade war.

Post-crisis Pearson now faces tougher growth test

17 October 2018

The education group’s U.S. textbook unit is no longer in freefall, and cost cuts mean profit should finally grow again. Yet with its shares above historical norms, Pearson’s much-touted digital-education model needs to bear fruit. There’s little sign of that so far.

Barnes & Noble LBO more mystery than romance

8 October 2018

Founder Leonard Riggio wants to take the struggling bookseller private. The balance sheet is in shape, and there’s room to improve efficiency, so it’s a deal that could work on paper. The trick is finding someone in five years who wants to own it.

The Benioffs become Time’s Person of the Year

17 September 2018

The Salesforce co-CEO and his wife are buying the magazine from Meredith for $190 million. They join the likes of Jeff Bezos and Laurene Powell Jobs, who have swooped in to save struggling news outfits. The cachet of old-school media brands appeals even to newish tech riches.

Review: Barry Cohen is a hedge-fund Frankenstein

31 August 2018

The protagonist of “Lake Success,” Gary Shteyngart’s new novel, comprises equal parts of financiers like Paul Singer, Howard Marks and Mike Novogratz. Running from a Valeant-like scandal, he hits the road through America’s heartland in search of his moral compass.

Review: Citigroup’s 2008 bailout won’t be its last

24 August 2018

That’s one conclusion to draw from “Borrowed Time,” a new book examining the troubled 200-year history of Citi. The $180 bln bank has suffered repeated failures of over-aggression and lack of foresight, while Uncle Sam’s wallet blocks meaningful reform, the authors argue.

Free press needs paywalls more than editorials

17 August 2018

Over 350 U.S. newspapers published articles on Thursday decrying President Trump’s attacks on the media, drawing a predictable retort from the White House. A coordinated effort by the news industry to explain why people should pay for their product might be more effective.

Australian media mega-merger price looks generous

27 July 2018

Newspaper publisher Fairfax Media agreed to a $1.6 billion buyout bid from broadcaster Nine Entertainment. Consolidation in the country’s media industry was inevitable given recent liberalisations. But Nine shareholders have reason to be displeased by the premium offered.

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.