Television

Comcast is best leaving Fox to the Mouse

25 April 2018

Boss Brian Roberts says the cable company is open to acquisitions and he won’t use stock. But how he pays is less important than what he pays. Challenging Disney’s $66 bln deal for parts of Rupert Murdoch’s empire would be an expensive fight. Roberts is better off walking away.

Xiaomi puts collective spin on tech IPO vows

25 April 2018

The Chinese firm says if net margins on its phones and gadgets ever top 5 pct, users will keep the spoils. Ahead of an IPO at a mooted value of up to $100 bln, this is a stunt worthy of Silicon Valley. It tells investors to focus on apps, and consumers that Xiaomi has their back.

Netflix’s advantage is Facebook’s weakness

16 April 2018

The video-streaming service is outperforming its FAANG associate. Subscriptions give the business an edge – and an incentive for boss Reed Hastings to keep customers’ data close by. Cash burn is always a risk but for now Netflix is better situated than Facebook.

CBS boardroom drama could use a refreshed cast

11 April 2018

Controlling shareholder Shari Redstone may want a merger with Viacom even without CBS boss Les Moonves. Getting rid of him would require new thinking on the board. A revamp is overdue anyway: two-thirds of directors are over 70 and diversity is only slowly getting past M*A*S*H.

Busting EU sport cartel lines already fat pockets

11 April 2018

Antitrust authorities raided groups including Fox in a TV-sports cartel probe. Usually, such moves help consumers. But if the cartel had helped hold down inflated media rights, the main beneficiaries from its end would be already loaded teams and athletes.

CBS can be much more generous with Viacom

6 April 2018

The broadcaster is easily able to cough up more than a possible lowball offer for the MTV operator, which appeared to value Viacom at below the market price. With a combined value of $40 bln there’s plenty to go round – while still leaving CBS’s own shareholders better off.

CBS boss kisses off Viacom against the odds

3 April 2018

Les Moonves is pondering a bid at less than market value for the $12 bln MTV operator and wants to run the combined show. That seems an unenthusiastic start. But the Redstone family, which controls both companies, wants a tie-up. And CBS can nowadays afford a 30 pct premium.

Guest View: Why the government will lose to AT&T

23 March 2018

The U.S. Department of Justice is tuning in to old channels in its case against the telephone company's Time Warner deal, argues a former Federal Communications Commission chief economist. The Trump administration has crocheted a quilt lacking awareness of historical pattern.

What’s Time Warner worth?

13 March 2018

AT&T's $85 billion bid for the media group is in limbo - but Time Warner may be better off without it. Run the numbers.

Time Warner may do better without AT&T

13 March 2018

The broadcast group and HBO owner is in limbo while telecom giant AT&T prepares to fight U.S. watchdogs over its $85 bln bid. If there’s even a 50 pct chance the deal happens, a Breakingviews analysis suggests Time Warner could be worth significantly more than the market thinks.

Oscars signal spread of sports-led live-TV decline

6 March 2018

Sunday’s Academy Awards show was the least-watched in its history. Viewers are also losing interest in American football and the Winter Olympics. Dwindling audiences for real-time events suggest one of U.S. broadcast television’s last bulwarks is in danger of collapse.

Murdoch holds winning hand in Sky poker game

27 February 2018

Comcast’s $31 bln offer for the European pay-TV firm poses a dilemma for Disney’s Bob Iger. He can try to outbid Brian Roberts or reduce his price for Fox’s assets, excluding its Sky stake. Either way, Rupert Murdoch looks set to come out ahead as the seller in a seller’s market.

Comcast hints at tense second season for Fox bids

12 February 2018

The cable firm could try to thwart media giant Disney’s $52.4 bln purchase of parts of Rupert Murdoch’s empire. Antitrust and family politics would hinder a reprise of Comcast’s $60 bln offer for now, but Disney may yet have to raise its game.

Disney Netflix-with-theme-parks recast looks scary

6 February 2018

The House of Mouse is set to assimilate $52 bln of Fox assets. CEO Bob Iger also needs to steady ESPN, deal with declining TV networks and potential "Star Wars" fatigue while spending billions on video-streaming products. The next several years will be a hair-raising ride.

Viacom-CBS are better back together

26 January 2018

The Redstone family is mulling a $37 bln merger of the two media firms after scrapping plans in 2016. Walt Disney’s acquisition of bits of Fox is likely to be a consideration. And this time around, the larger CBS can give its sister a 30 pct premium and still create value.

Tele2 pays late fee for telco “convergence” party

10 January 2018

The Swedish mobile operator is buying cable group Com Hem for $3.2 bln. The idea is to cut shared costs and cross-sell broadband, TV and voice services to customers. It’s a well-worn path in the sluggish telecom industry. But Tele2 faces a long wait to make the deal pay.

European soccer’s spending splurge will intensify

29 December 2017

Transfer fees like the $263 mln Paris St Germain paid Barcelona for Neymar have stoked talk of a bubble. But increased spending is mostly justified by the soaring value of broadcasting rights. If U.S. tech giants join the action in 2018, players will reap the benefits.

Hulu’s slimmed-down ownership adds complexity

27 December 2017

Disney will have a majority stake in the streaming service after absorbing Fox’s 30 pct share. A further 30 pct sits with Comcast, currently muzzled because of an antitrust deal struck with regulators. It’s likely one will end up owning Hulu outright – but not without a fight.

Netflix can withstand $52 bln mouse-and-fox attack

14 December 2017

Disney is creating a direct-to-consumer entertainment giant with its Twenty-First Century Fox deal. That puts Reed Hastings’ streaming outfit in the crosshairs. But Netflix’s content investments are already paying off, and it's not distracted by integration or antitrust issues.

Disney deal widens Murdoch legacy, erases discount

14 December 2017

It’s paying $52.4 bln in stock to own a slimmed-down Fox, including the movie studio. CEO Bob Iger is extending his stay again. The historic deal pushes Rupert Murdoch’s empire into the Magic Kingdom, and long-suffering Fox shareholders will finally get a happy ending.