Publishing

Big Tech beware: antitrust cop can think small too

21 June 2019

The watchdog’s bid to stop a $1.4 bln merger of two book printers is old-school. Yet the Justice Department’s meticulous definition of the sector bodes ill for Facebook and its ilk. Narrow market definitions plus broad measures of customer harm would be the worst of both worlds.

KKR finds risky media bargain with Axel Springer

12 June 2019

The private equity group is partnering with the German company’s founding family to buy out minority investors for 3 bln euros. It gets a racy digital listings business at the price of a sluggish newspaper publisher. Yet the lack of control limits KKR’s options if growth slows.

Axel Springer buyout works best with breakup

30 May 2019

KKR may take the $6.6 bln German media group private alongside CEO Mathias Doepfner and the founder’s widow. An unwieldy structure that spans publications like Bild and Business Insider as well as classifieds means a low valuation. Separating the two is the surest route to riches.

Toxic U.S. tabloid sale talk sounds like a whopper

11 April 2019

The hedge fund behind the Trump-friendly National Enquirer may want to sell the controversial title. Yet if heavy debt, a brush with federal prosecutors and an alleged attempt to blackmail Jeff Bezos are scary to the owner, they’ll have the same effect on any credible buyer.

News M&A battle prints one farce after another

9 April 2019

After waving around a toothless credit commitment in its $1.4 bln pursuit of Gannett, Denver Post publisher MNG is going after the board. But its six nominees have ties to either the bidder or its hedge-fund owner. Investors should throw the slate straight into the recycling.

Apple stretches to take on Netflix, Amex, Disney

25 March 2019

It unveiled a dizzying array of new services aimed at disrupting sectors like media and finance. They range from the confusing to the mildly innovative. The $880 bln tech giant’s launches used to strike fear, but this time boss Tim Cook is paving a trail of mediocrity, not havoc.

Extra! Newspaper bidder flubs credit test

25 March 2019

MNG, owner of the Denver Post, is waving a “highly confident” financing letter from Oaktree to advance its hostile bid for publisher Gannett. Yet MNG isn’t clear if the debt specialist will even bother to lend it $1.7 bln. The tactic is as unconvincing as it is unconventional.

Apple tests appetite for a not-Facebook of news

13 February 2019

A new Netflix-like service would help news publishers get onto millions of smartphones, but at high cost, according to the WSJ. It helps that Facebook has set a low bar for content quality and treatment of media partners. Even so, boss Tim Cook risks overplaying his hand.

Thruppence: Who wins by sponsoring UK book prize?

29 January 2019

Man Group has ended its support for the UK’s prestigious Booker award. The hedge fund decided there were worthier recipients of its 1.6 mln pound annual cheque. Luckily for aspiring authors, Breakingviews columnists have a handy shortlist of those who could step into the breach.

New media’s latest challenge is old media

24 January 2019

BuzzFeed and Verizon Media are slashing jobs. Like mature counterparts in a changing advertising world, upstart news outfits may need to merge to survive. But at least older players like the New York Times can sell their content. Some latecomers will have a hard time doing that.

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.