Broadcasting

Sirius may pay for 18-month merger delay

15 Aug 2008

The satellite radio company was forced to raise money on onerous terms to complete its merger with rival XM. The potential synergies justified doing so. Unfortunately, Sirius debt load gives it limited time to deliver the goods.

Comcast splurges again on web candy

6 Aug 2008

The cable operator keeps shelling out on websites that don t appear to have much to do with its core business. It s paying $125m for Daily Candy, a womenoriented site. It will take more than a shopping spree for Comcast to show shareholders the merits of its content makeover.

Cablevision worth lots more – without the Dolans

5 Aug 2008

The cable company s controlling shareholders say they re exploring options to help create value. If they were serious, a sale of the assets could give shareholders a juicy premium. Unfortunately, the Dolans aren't likely to part with their toys anytime soon.

Why didn’t GE buy the Weather Channel alone?

7 Jul 2008

GEowned NBC has teamed up with Bain and Blackstone to buy the Weather Channel for $3.5bn. Credit funds at Bain and Blackstone are lending to the deal maybe assuring them a place at the table. But GE s risksharing raises questions about its commitment to NBC.

Clear Channel’s shareholders should consider $36 a victory

12 May 2008

THL and Bain are renegotiating the financing for the radio company s buyout. That will probably result in a lower price. But given the inhospitable markets and bad blood among the parties, it may be the best one can hope for as long as the company forges an ironclad agreement.

Tribune lenders must ask Zell tough questions

16 Apr 2008

After all, most of its shareholders aren t able to hold his feet to the fire. And someone has to the newspaper company is near to breaching covenants and it has $2bn in debt coming due in next year. If lenders want to recover their investment, they need to take a strong stand.

CBS and Viacom should get back in bed

4 Apr 2008

CBS is getting into the cinematic territory of its former parent and the two are competing for assets. Sumner Redstone should just admit he goofed in breaking the two up. It would be better for shareholders of both firms if managed as one group without his erratic intervention.

Clear Channel clash highlights LBO refinancing risk

27 Mar 2008

The US radio operator and its banks are fighting over the terms of $22bn of debt financing. The banks want to halve the maturity to three years. Clear Channel would rather sue than refinance so soon. But the easy terms of early 2007 probably won t be back in six years, either.

Global Radio shows tech blindness with GCap bid

5 Mar 2008

The acquisitive Global Radio is close to buying UK s largest commercial radio broadcaster, which is reeling from a bad industry and a foolish bet on digital radio. At £371m, Global is paying up. It might have done better to look to the technological future internet radio.

Weather Channel’s $5bn price tag is a conversation-starter

3 Jan 2008

The US climatology giant is asking for a lot more than it appears to be worth. But it may reap a windfall anyway. The Weather Channel is one of the last independent basic cable channels and runs the leading weather website. Its auction could attract a lot of interest.

Sky facing heavy price for ITV adventure

20 Dec 2007

BSkyB should cut its 17.9% stake in ITV to a maximum 7.5%, according to the Competition Commission. That would trigger a £200m loss for the UK broadcaster. Sky may consider this a price worth paying for blocking Virgin Media's bid for ITV. Besides, it is not giving up yet.

Cablevision no vote sets a good precedent

24 Oct 2007

The Dolan family s cheapo $22bn offer put investors in a pickle. They could reject the deal and see the value of their investment fall or accept it and set a precedent for future trammelling of minority shareholders rights. Investors should appreciate their accepting the latter form of selfflagellation.

BSkyB should get shot of ITV stake

2 Oct 2007

Now that Britain s competition regulator has said the stake in rival ITV restricts competition, Sky should sell it. Other remedies, like keeping the stake but losing its votes, are less palatable. What's more, Sky has achieved its main goal scuppering a merger of ITV and Virgin Media albeit at significant financial cost.

CBS shows up faster-growth sister Viacom

31 May 2007

Since their forced separation by Sumner Redstone, CBS has made four times more money for investors than Viacom. Now it also seems to be competing with its former parent. This further confirms Redstone s muddled strategy in breaking them apart.

Clear Channel imbroglio may lead to proxy battle

4 May 2007

The radio company's buyout is headed off the rails. Its directors, the buyout shops, and the founding Mays family all look bad. Clear Channel s directors really need to polish their image. In the wake of the deal, disgruntled investors may call for their heads.

CBS follows profit principle in DJ furore

13 Apr 2007

As Milton Friedman said, the primary responsibility of a corporation is to maximise profit. Firing shockjock Imus did just that. Indeed, CBS shareholders are $200m richer today than when Imus first taught nonAmerican listeners that nappy isn t just a diaper.

Stub equity could resolve Clear Channel impasse

28 Mar 2007

It has been mooted as a way to end the disagreement between buyers Bain and THLee and sellers Fidelity and Highfields. But it s not that simple. As the UK example has shown, shareholders don t like stub equity because they forfeit liquidity and influence.

TV digitisation a boon – for electronics firms

14 Mar 2007

The US will spend $1.5bn of taxpayer's money on coupons to subsidise purchases of digital converter boxes for TV antennae. This boondoggle will pay an administrator $100m to line the pockets of firms like LG, Thomson and Samsung.

LBO lenders court subprime-style meltdown

21 Feb 2007

Both types of lenders have chased every last dollar of business in the belief that the business cycle will never turn. Univision s LBO package is the latest to push the envelope. Its new debt multiple may set a record. But lenders may live to regret it.

XM-Sirius a boon for investors, bane for broadcasters

20 Feb 2007

XMSirius deal approval is likely. Their shareholders are the obvious winners. Contrary to popular wisdom, listeners will also benefit. But the merger will hurt radio broadcasters, pitting them against a stronger rival whose national reach will greatly appeal to advertisers.