Publishing

Sam Zell may go from leverage victor to victim

1 April 2008

The mogul made a fortune selling his REIT at the top of the LBO boom. But his Tribune deal looks to be spiraling. The company is barely complying with its loan covenants and has $3bn in shortterm debt to refinance. It may have to sell some core assets to stay solvent.

Will Reed’s £1.1bn mags sale ease LBO famine?

6 March 2008

At least six buyout groups may be suitors for the publisher s unglamorous business titles among the first private equityled auctions since the credit crunch. But even this might be a stretch for financial sponsors in the current market.

Reed Elsevier reshape makes it attractive

21 February 2008

The AngloDutch publisher is no more. The decision to sell its B2B unit, and the $4.1bn cash acquisition of US risk management group ChoicePoint transforms Reed into a focused online workflow solutions provider . It might not have the same ring, but it s a smart move.

New York Times chooses one battle too many

21 February 2008

The newspaper company recommended that shareholders not vote for activist fund Harbinger Capital s slate of board candidates. That looks foolish. Other shareholders are rooting for Harbinger. There s a good chance the Times will lose a proxy battle.

New York Times should open up to activists

12 February 2008

Hedge funds Harbinger and Firebrand plan to nominate 4 directors to the board of the familycontrolled newspaper group. Rather than engage in a fight it will almost certainly lose with angry investors, the company should reach a truce and take on two of the activists' directors.

Credit wobbles don’t stop Reed’s $4bn sale

17 July 2007

The AngloDutch group is selling its education business to Houghton Mifflin Riverdeep at an impressive 21 times operating profit. But Reed isn t immune to credit woes. It s taking shares in the debtladen acquirer as part payment. Still, Reed looks ripe for revaluation.

Reed LBO rumours look overblown

28 June 2007

The £15bn AngloDutch publisher seemingly ticks all the right boxes: low debt, stable businesses and high earnings visibility. But Reed is very big. And publictoprivate deals are hard to do in the UK. So don t hold your breath.

How can Murdoch win Dow Jones?

14 May 2007

Why not offer a really fat premium to the supervoting shareholders, while keeping the bid for ordinary shares flat? The promise of a News Corp board seat, WSJ independence and extra investment, might be enough to clinch the support of the Bancroft family.

Murdoch should detail WSJ investment plans

8 May 2007

He'd probably boost its brand internationally to take the FT headon in Europe and Asia and invest in US political coverage and TV. Under the controlling Bancroft family, by contrast, Dow Jones has arguably been crimped of investment to pay fat dividends.

Thomson-Reuters gives another reason for Dow to sell

8 May 2007

Rupert Murdoch s $60 takeover offer may have looked attractive last week. Thomson s purchase of Reuters only makes it more so. The deal could undermine Dow s cash engine its news wires arm which piggybacks ThomsonReuters for distribution.

NY Times holders deal blow to Sulzbergers

24 April 2007

How can that be? After all, 58% of the newspaper publisher s shareholders voted in favour of directors at Tuesday s annual meeting. But cut the numbers differently to reveal how nonfamily shareholders voted. A majority of them gave the thumbsdown to directors.

Yahoo disappoints investors again

17 April 2007

The internet group didn't just miss 1Q estimates. It undermined confidence in the rollout of its new advertising system, Panama. This is the last straw for CEO Terry Semel. If Panama's hopes don't pan out in the next quarter, it will be time for new management.

Scardino should have done the opposite at Pearson

26 November 2006

Many of the businesses that she sold, such as Madame Tussauds, are now worth more than when she sold them. The value of many of businesses she bought are also now worth less. An "antiScardino" would have done better than the real one.

At last, a boring LBO

16 November 2006

Reader s Digest may be the most boring company on the planet with revenues as flat and steady as the Great Plains. But that's a classic LBO profile. What's amazing is that this was overlooked while far riskier assets were gobbled up. Reader s Digest may be the most unexciting company on the planet with revenues as flat and steady as the Great Plains. But that's a classic LBO profile. What's amazing is that this was overlooked while far riskier assets have been gobbled up.

Forbes reluctant to adopt capitalist tool

8 August 2006

The familyowned business publishing empire has unabashedly championed the free market since 1917. But its reluctance to adopt public ownership has left the group capitalstarved and forced it into the arms of private equity.

Tribune local breakup would add value

9 June 2006

McClatchy s piecemeal sale of Knight Ridder showed newspapers are more highly prized in private hands than the public markets. Apply the same logic to Tribune, and its newspaper assets could be worth at least 10% more than investors give them credit for.

New York Times buyout not as likely as it looks

21 April 2006

A buyout by the Sulzbergers is superficially attractive as the stock tumbles and outside shareholders become increasingly pesky. But the family might conclude it s better to put up with sniping from powerless shareholders than paying heed to banks or private equity.

VNU risks another big clash with investors

14 February 2006

Some shareholders believe the Dutch media group could fetch far more via a breakup than a sale to private equity. The real issue is one of trust. The board should follow Hollinger s lead and appoint a credible interim chief executive to manage the sale.

Hedge funds aren’t the only bullies

18 November 2005

Traditional longonly investors are also getting uppity, kicking companies into play and heaping pressure on errant chief executives. This is a good sign that they are taking their fiduciary obligations more seriously and learning from the hedge funds.

VNU U-turn a victory for shareholders

17 November 2005

The Dutch media group hasn't just been forced to scrap its senseless $7bn IMS bid. Its boss has fallen on his sword and the shares are up. That's exactly what happened with Deutsche Boerse. This beats the old model, when share prices fell after unpopular deals and bosses stayed.