Communications

Viacom-CBS are better back together

26 Jan 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.

Tencent is no match against Beijing’s bureaucrats

4 Jul 2017

Government criticism levelled at the gaming giant's lucrative but addictive mobile hit wiped $14 bln off its market value. Tencent is moving to placate Beijing by limiting game time for kids. But if regulators crack down further on popular titles, appeasement could be costly.

UK cyberspace crackdown faces reality checks

5 Jun 2017

Prime Minister Theresa May pledged new curbs on extremist propaganda and communications via YouTube, WhatsApp and the like following attacks in London and Manchester. Such promises can be good politics, but to actually happen they must make technological and economic sense.

Twilio IPO gallop suggests unicorns can run free

23 Jun 2016

The U.S. software firm debuted even as Brexit, interest rates and other global concerns have stalled most new listings. A 75 pct pop in the shares gave the fast-growing but unprofitable enterprise with lousy governance a $2.2 bln value. Silicon Valley’s hold on investors endures.

Bollore gets better of activists in Vivendi tussle

9 Apr 2015

Vincent Bollore has made peace with U.S. activists circling the media group he chairs. A vow to return 6.75 bln euros to shareholders is handy: Vivendi had been too vague about plans for its huge cash pile. But the French tycoon’s antagonists seem to have compromised more.

Comcast CFO becomes $400 mln envy of the C-suite

7 Apr 2015

With $4 bln from his employer to invest in chunky deals, Michael Angelakis may sock away a huge retirement fund. If he can generate a 17.5 pct gross return, Breakingviews pegs his share at some $40 mln a year over a decade. Finance chiefs will be firing up their spreadsheets.

Charter deal may not be final word on Bright House

31 Mar 2015

The $10.4 bln acquisition, contingent on Comcast buying Time Warner Cable, suggests some confidence those rivals will get approval. If not, however, the U.S. cable puzzle could realign. Charter again might chase Time Warner Cable, which actually has first dibs on Bright House.

Fine-tuning can’t silence AT&T and Comcast static

3 Jun 2014

Their respective bids – $67 bln for DirecTV and $45 bln for Time Warner Cable – raise competition concerns. The buyers say concessions like price caps can resolve any issues. History suggests they don’t work well, though. If the risks are real, trustbusters should pull the plug.

Comcast’s $45 bln deal warrants some utility logic

11 Apr 2014

These days it isn’t a big stretch to liken pipes carrying internet access to those carrying water or electricity. When utilities merge, though, regulators want consumers to share the spoils. If approached that way, Comcast’s Time Warner Cable takeover might raise fewer hackles.

Time Warner Cable can jack up Charter’s bill

14 Jan 2014

Charter’s $62 bln takeover bid contains no premium. Its first proposal last July didn’t either. The valuation falls short of other industry deals and in theory Time Warner Cable could be worth more by turning the tables on its suitor. Expect Charter to come up more than halfway.

SoftBank’s bump for Sprint isn’t a knock-out

11 Jun 2013

The Japanese group’s new $22 bln offer for a controlling stake in the U.S. telco gives shareholders more value. But investors would retain exposure to a Sprint that has $3 bln more debt than first envisaged. That erodes SoftBank’s key advantage over leveraged rival bidder Dish.

How Huawei can dial down the fear factor

10 Jun 2013

Forget links to the Party or fears of security breaches: the telecom supplier is under fire because China is mistrusted. The U.S. spying furore merely adds to concerns that networks are leaky. Huawei can’t change that, but it can upgrade governance, and get consumers on its side.

Kenyan mobile banking innovation is hard to export

7 May 2013

Vodafone’s Indian arm is launching a local version of the service that has been a hit in Kenya. The government’s push to broaden access to banking services means the plan is well-timed. But financial regulations and fierce competition stand in the way of widespread adoption.

RIM shies away from chance for reboot

23 Jan 2012

The troubled BlackBerry maker’s architects are finally giving up their shared chief executive job. But Thorsten Heins, the new boss, is an insider who sees no need for drastic change, and the two ex-CEOs will stay on the board. It could hardly be further from a fresh start.

India’s Reliance on Chinese cash comes with risks

17 Jan 2012

India Inc is feeling the pinch as dollar liquidity dries up. With EU banks retrenching, Asian competitors are picking up the slack. It’s nice to have options but Chinese funding is still seen as a last resort. Politically hard to swallow, it often comes with strings attached.

HTML5 buzz weakens the power of mobile apps

12 Aug 2011

Apple and Google-powered smartphones have hundreds of thousands of specialized Web programs, allowing them to lock up the market - and users. A new Web standard is gaining traction, potentially allowing an end-run around walled gardens. But Apple and Google have little to fear.

Brunswick equity won’t stop the bold spinning off

5 Jul 2011

Financial PR is lucrative, but the wealth isn't that widely spread. Brunswick founder Alan Parker, one of the biggest beneficiaries, plans to offer his top spinners small stakes. That probably won't stop the boldest from following his earlier lead and striking out on their own.

Uncle Sam scrambles signals on smartphone privacy

24 May 2011

BlackBerries and iPhones record our daily lives. But the law shielding the data is up for grabs. An Oregon court is mulling whether cops need warrants to search a phone and it's an issue that has split U.S. judges. People and businesses can only wait for the law to catch up.

Skype schmuck insurance pays off richly for eBay

10 May 2011

The online auctioneer can now claim to have made money on the Internet telephony group. Though eBay wrote down its original 2005 $3.1 bln purchase, and then sold it for less to Silver Lake and friends, keeping a stake allowed it to save face and show a return well over 30 pct.

Microsoft’s $8.5 bln Skype price is in the cloud

10 May 2011

In theory, the WindowstoOffice giant could integrate Skype's voice and video calling to its advantage. In practice, Microsoft's M&A track record is poor. Combine that with a valuation at 10 times 2010 sales and this is one call that is unlikely ever to connect for shareholders.