Broadcasting

Cablevision’s pain should be U.S. cable’s gain

14 Jun 2010

The New York operator is buying western peer Bresnan for a far richer multiple than either it or its larger rivals trade at. Cablevision s controlling Dolan family has a history of making oddball decisions. But the deal still makes Time Warner and Comcast look undervalued.

Viacom looks increasingly like CBS with rock stars

9 Jun 2010

The MTV operator was meant to grow faster without the sluggish TV network attached. But since their 2006 split, Viacom s returns have lagged rivals. It s now paying its first dividend, suggesting CBSlike maturity. Sumner Redstone s breakup logic hasn t stood the test of time.

U.S. should spike $35 bln newspaper bailout idea

4 Jun 2010

It s almost as dodgy a notion as nuking BP s gusher. The U.S. Federal Trade Commission is mulling ways to subsidize the flailing news industry. Paying for it could involve headscratchers like taxing sales of iPads. What the media industry needs is innovation, not intervention.

U.S. cable shares may offer shelter from storm

1 Jun 2010

A new threat of broadband regulation hit valuations, which were already pressured by competitive worries. But the sticky, and domestic, revenue of Comcast and Time Warner Cable provide attractions for investors, even in a sluggish economic recovery.

Pay-TV sale won’t pull Lagardere out of cul-de-sac

15 Apr 2010

Lagardere, the French media group, wants to exercise a put option on its 20 pct stake in Vivendi's Canal+. This could fetch up to 1.4 bln euros. But it won't be enough to soothe activists' complaints about the dismal record of eponymous chief executive Arnaud Lagardere.

U.S. radio broadcaster finally gets timing right

16 Mar 2010

Making commercial property deals in the thick of Wall Street s 2008 implosion wasn't ideal. But National Public Radio seems to be hitting the timing right with its $160 million bond issue to finance its new Washington headquarters. Now to figure out how to repay the cash.

Web’s the winner in New York TV Oscars showdown

8 Mar 2010

Cablevision s 3 mln customers missed the start of the Academy Awards because of a fee dispute with Disney. The fast resolution shows how content and distribution still need each other. But such tiresome spats may hasten customer flight to the Internet even for live broadcasts.

Wal-Mart throws weight against cable companies

23 Feb 2010

The giant U.S. retailer sells tons of DVDs and CDs, but digital delivery is shrinking sales. WalMart s trying again to muscle its way into the nascent market via its purchase of Vudu. Whether it will succeed is unclear but the rivals taking on cable TV keep multiplying.

Global prices may soon present cruel dilemma

15 Dec 2009

After falling early in 2009, global consumer prices have resumed rising, pushed up by commodities. If the global economy recovers, labor markets strengthen and commodity prices stay strong, inflation could quickly force monetary policymakers into a difficult choice.

Vivendi has nine months to show its worth

4 Dec 2009

The French conglomerate has delivered weak returns over the past five years and its new growth strategy looks unconvincing. Vivendi might not see any proceeds from its NBC exit until September next year. It should use the time to convince investors it deserves to keep the cash.

ITV convertible puts rights issue off the schedule

13 Oct 2009

The UK broadcaster may be struggling to fix its rudderless board. But it is having more success in addressing its beleaguered balance sheet. A £120m convertible bond will add more debt but ease the burden of looming repayments. A rights issue has been averted if not forever.

Wynn IPO owes more to greed than Lady Luck

22 Sep 2009

Gaming mogul Steve Wynn plans to float his Macau business for 34 times earnings, a premium to listed peers. That buyers will pay such prices is hard to square with reality, even in China s Las Vegas. Speculative fever has spilled out of the casino and into the stock market.

Was Chuck Prince a visionary?

11 Feb 2009

The deposed Citi boss didn t mean it literally when he equated the credit boom to dancing. But boy was he prescient. This week Muzak, the pioneer of elevator music, filed for Chapter 11; Sirius may follow and Clear Channel radio is in trouble. The music really has stopped.

Sirius will struggle to attract a white knight

9 Feb 2009

In theory the US satellite radio broadcaster could be worth $1bn more than its current enterprise value. But it needs patience and capital to get there. With both in short supply, finding a rival to Echostar willing to recapitalise Sirius is a stretch.

UK broadcasting needs private-sector solution

20 Jan 2009

The industry is bracing itself for a shakeup as regulators outline ways to plug the funding gap caused by publicservice broadcasting obligations. More state funding, or siphoning cash from the BBC, is not the answer.

Disney heats up UK football rights auction – a bit

14 Jan 2009

Deep pockets failed to win Disney s ESPN TV network the broadcast rights for the German Bundesliga. Sure, serious interest in the English Premier League ups the stakes for current holders BSkyB, and Setanta especially. But this auction still won't be as hotly fought as the last.

Channel 4’s fate rests with UK government, not BBC

12 Jan 2009

BBC directorgeneral Mark Thompson has hinted he supports a merger of cashstrapped broadcaster Channel 4 with RTLowned Channel 5. He s afraid the BBC might otherwise have to prop up its commercially funded rival. His views may make sense, but Thompson won t have the final say.

BSkyB gets off lightly where it counts

1 Oct 2008

It could have been a terrible week for the British satellite broadcaster, but it didn t turn out too badly. Sure, it has been told to reduce its 17.9% stake in rival ITV. But Sky is only being asked not forced to give rivals better access to its most valuable content.

Clear Channel LBO debt priced for disaster

10 Sep 2008

Banks are flogging its debt at 70 cents on the dollar. So even if the radio company goes bankrupt after three years, lenders may squeeze out a small return. Banks, however, will take a bath. But given the market's meltdown since the banks underwrote it, they've got little choice.

Post-Olympics NBC isn’t any more compelling for GE

25 Aug 2008

NBC s chief said the network s ratings success from the games should silence questions over its future. Even so, profits from the games, once annualised, would add very little to the media division s results. NBC s fit within the industrial conglomerate is still an open question.