Broadcasting

Capital Calls: Ralph Lauren

19 Sep 2022

Concise views on global finance: The $6 bln retailer known for its iconic Polo shirts is cheaply valued compared to European counterparts.

Reliance’s digital cricket deal puts TV to a test

14 Jun 2022

Mukesh Ambani’s Indian media empire will use the premier league’s streaming rights, won for $3 bln, to aggressively ramp up his streaming service. Success will come at the expense of former owner Disney. A fiddly ownership structure limits the tycoon’s financial pain too.

Bolloré makes tactical retreat in Italian foray

4 May 2021

The French billionaire has buried the hatchet with Silvio Berlusconi’s Mediaset, ending a wasteful five-year row. Bolloré’s Vivendi may not fully recoup its 1.2 bln euro investment in the broadcaster. At least the tycoon now has a freer hand to pursue his Italian telecom bet.

BT keeps eye on the ball by giving soccer the boot

29 Apr 2021

The UK telecom group may sell some or all of its sports broadcast unit. Where live matches once helped lure broadband customers, the battleground has switched to super-fast fibre connections. Falling subscribers and dubious profitability make TV sport an unnecessary distraction.

SpongeBob emerges from market chaos mostly intact

29 Mar 2021

ViacomCBS pocketed $3 bln by raising equity after a meteoric share-price rise, only to find itself at the center of a selloff triggered by hedge fund Archegos. The broadcaster’s shares are still up over 20% this year, but its next capital raising may not be so easy.

Capital Calls: McKinsey, Celebrity SPACs

10 Mar 2021

Concise views on global finance in the Covid-19 era: McKinsey’s new boss isn’t new enough; the SEC tells investors to be careful of celebrities bearing SPACs.

Fox-Disney deal creates a new greater fool

5 Nov 2020

Sinclair has written down the value of sports networks it bought from Walt Disney by over $4 bln. The Magic Kingdom had acquired them in its overpriced carve-up of Rupert Murdoch’s media empire. That leaves a wily Fox, a lucky mouse, and a hapless Sinclair holding the bag.

A Trump defeat would create an even more rabid Fox

21 Oct 2020

Rupert Murdoch’s $16 bln cable group has enjoyed an unrivaled relationship with the president. Joe Biden’s victory would rob him of his biggest celebrity. Democrats could also target the channel. And Trump might go into competition. Doubling down on division may be the cure.

Italy’s soccer woes give buyout firms an open goal

17 Jun 2020

CVC and Bain Capital are vying to take a stake in the country’s top Serie A league. Empty stadiums will strain clubs’ finances, while broadcasters have dragged their feet on handing over 1.3 bln euros of annual TV money. It offers a rare opportunity for a cut-price cash transfer.

Corona Capital: Banking bonuses, Local TV M&A

30 Mar 2020

Concise views on the pandemic’s corporate and financial fallout: BBVA’s ditched bonuses pressure peers; local TV deal has more than one struggle.

Bolloré nears rare draw in messy Italian campaign

29 Nov 2019

Vivendi is to sell 20% of Mediaset, part of a broad truce with the Berlusconi-controlled broadcaster. The deal ends a wasteful legal row with little financial damage for Vivendi’s top investor Vincent Bolloré. Yet his larger Telecom Italia investment is still deep under water.

Viacom-CBS is the Rip Van Winkle of TV

14 Aug 2019

The two firms split 13 years ago to extract value and boost growth. That plan failed, while peers got larger like Disney, or sold like Fox. A reunited Viacom and CBS can best shake off its slumber by amassing a portfolio of great shows to sell to more established video streamers.

Berlusconis’ German TV raid looks opportunistic

29 May 2019

Mediaset, controlled by the former Italian prime minister’s family, snapped up 10% of Germany’s ProSieben. There’s a case for Europe’s media groups to combine to fight Netflix, but the move brings the Italians few real benefits. A cheap price is probably the main draw.

Pay-TV tycoon comes to his own rescue

20 May 2019

Dish is suffering from falling subscribers and revenue, a heap of debt and needs bidders for its spectrum assets. Founder Charlie Ergen’s short-term fix is to pay stock to another of his companies, EchoStar, for some satellites it uses. The cash saved will buy Dish some time.

Netflix reaps the dividends of its dominance

15 Jan 2019

The video streaming service is raising the cost of subscriptions just as AT&T, Disney and NBC ready rival offerings. Hiking prices in the face of growing competition could turn off viewers. Yet Reed Hastings’ firm is so far ahead of peers he can afford to take the risk.

Tribune gets better M&A script in second season

3 Dec 2018

Nexstar is buying the U.S. media group for $4.1 bln. Tribune recently pulled out of an earlier deal after suitor Sinclair irked U.S. regulators. This go-around looks like a stronger plot. The price is higher, the buyer’s record is strong and there’s a clean sheet with watchdogs.

Comcast overreaches for Sky with $40 bln knockout

22 Sep 2018

The U.S. cable group beat Disney’s Fox in an auction for the UK broadcaster with a bid worth 17.28 pounds per share. CEO Brian Roberts will struggle to justify the offer on any conventional metric. It’s a huge bet on overseas growth for a group that can’t get much larger at home.

Sky battle may end in awkward media giant impasse

19 Sep 2018

A sealed-bid auction could decide whether Comcast or Disney takes control of the UK broadcaster. The winner will almost certainly overpay. If the cable giant triumphs, the Magic Kingdom might keep its 39 pct stake. That would make the fierce rivals uneasy joint venture partners.

Naspers takes first step to shrinking Tencent gap

18 Sep 2018

The South African group is valued at a hefty discount to its $120 bln stake in the Chinese internet giant. Floating its African TV unit should therefore provide some relief to frustrated investors. To unlock more value, though, Naspers may need to shed its remaining operations.

Corbyn goes mainstream with UK tech tax idea

23 Aug 2018

The opposition Labour Party’s leader, Jeremy Corbyn, wants to tax tech giants like Google and Facebook to fund journalism. The normally radical politician is in line with European thinking. His proposed solution has flaws but a better designed subsidy would be worth considering.