Media & Entertainment

Spotify’s next act: hosting ad lollapalooza

24 Feb 2023

The music service attracted activist ValueAct as founder Daniel Ek starts to whack costs. Yet rather than cutting its way to profit, Spotify could stem its losses by nabbing a quarter of the streaming and podcasting ad pie. It’s a tough but plausible performance to pull off.

Movie theater chain’s spotlight will stay dark

23 Feb 2023

A Pennsylvania pension fund is suing AMC over a decision to issue preferred stock without a vote. The CEO speaks of empowering investors, an irony given his decisions. And ultimately he is missing the point – AMC’s business is too far gone, and will likely need restructuring soon.

K-pop showdown amplifies shareholder voices

22 Feb 2023

A hostile takeover of South Korean music label SM by rival Hybe, which manages global boy-band sensation BTS, is heading to a ballot. The fierce saga exposes corporate governance woes that plague Asia, but also some unlikely progress. Whichever side prevails, investors win.

Soccer’s new M&A binge will mostly benefit players

17 Feb 2023

Qatari investors are planning a $6 bln Man United offer, according to Bloomberg, while billionaire Jahm Najafi may swoop on Tottenham. Clubs are losing more of their revenue to player wages and transfers. That will only get worse as more rich owners chase scarce sporting talent.

Comcast poised to spark streaming consolidation

15 Feb 2023

Hulu’s minority owner is a logical buyer for the rest after controlling partner Disney indicated it’s open to selling. The cable operator’s roots are in video distribution, and too many Netflix-wannabes abound. Boss Brian Roberts could kick off an overdue industry reckoning.

Malone’s Vodafone bet may take years to pay off

14 Feb 2023

Liberty Global bought 4.9% of the telco conglomerate, joining industry rivals Abu Dhabi’s e& and Xavier Niel. Chairman John Malone knows the $31 bln company well and may hope to influence any breakup. A 2015 investment in UK broadcaster ITV shows he’s willing to sit and wait.

Lyft is second horse in a one-horse town

10 Feb 2023

Mounting losses and a 35% plunge in the ride-sharing firm’s stock price are signals of how far Lyft is falling behind main rival Uber. The two are locked in a race where winning depends on cheaper fares or better-paid drivers. No wonder investors think two is a crowd.

Capital Calls: Adidas kitchen sink

10 Feb 2023

Concise views on global finance: Shares in the sportswear maker fell 11% amid forecasts of a high-single-digit decline in sales in 2023.

Bob Iger kills just one bird with well-aimed stone

8 Feb 2023

Disney’s CEO unveiled sweeping cuts across the $200 bln company, including 3% of the workforce. Lifting a sagging profit margin and restoring the dividend will reassure many investors but probably not pushy Nelson Peltz. If anything, the shake-up helps his case to join the board.

Capital Calls: AI lessons, Robots, Streaming wars

8 Feb 2023

Concise views on global finance: Textbook rental company Chegg becomes an early victim of ChatGPT fears; a short supply of U.S. workers makes automation look even more appealing; Warner Bros Discovery flips the script on its deal logic and will keep HBO Max as a separate service.

Debt is poor fix for Italian soccer’s malaise

8 Feb 2023

Having rejected private equity suitors, Italy’s top football league may turn to Wall Street banks to borrow up to 1 bln euros. The cash may give Serie A’s ailing TV rights business extra time. But without a governance shake-up, gorging on debt would extend its losing streak.

John Malone prepares for a victory lap

1 Feb 2023

The mogul’s labyrinthine Liberty Media is preparing another spinoff and fresh tracking stocks. Such financial razzmatazz hasn’t always benefited investors. In this case, isolating the Atlanta Braves and Formula One should generate value as the 81-year-old rides into the sunset.

Capital Calls: McDonald’s, Spotify

31 Jan 2023

Concise views on global finance: The burger chain’s comparable sales growth despite rising prices proves there’s pricing power at the bottom of the market; shares in the $21 bln music-streaming service leapt after founder Daniel Ek unveiled rapid subscriber growth.

Capital Calls: Juul’s extra puff

25 Jan 2023

Concise views on global finance: Three large tobacco companies may be interested in some sort of deal with the e-cigarette producer, whose $37 bln value has gone up in smoke.

Capital Calls: VC bunks up

24 Jan 2023

Concise views on global finance: Josh Kushner’s deal to sell a stake to investors, including KKR’s Henry Kravis, values his firm at $5.3 billion just as startups are at an inflection point. 

Capital Calls: “Angry Birds”, Cellnex

20 Jan 2023

Concise views on global finance: Playtika’s offer for “Angry Birds” maker Rovio may be just the beginning of a takeover saga; a mooted bid for phone tower operator Cellnex comes in the middle of a strategic turnaround.

Netflix will gain from Facebook and Google pain

19 Jan 2023

The TV-streaming service is rolling out an ad-supported plan just as the tech titans lose digital market share. Making the strategic shift work will now be partly up to new co-CEO Greg Peters. At least Reed Hastings helped put the company in position to nab social-media spending.

Macau bounces into Year of the Rabbit

19 Jan 2023

Spring has sprung in the casino hub with the end of China’s zero-Covid. Operators will return to profit. Yet from Sands to SJM, balance sheets are stretched. How quickly they are repaired depends on if punters spend as much as before. Pandemic policies will leave other scars too.

Disney investors pay twice for half-leadership

18 Jan 2023

Between outgoing chief Bob Chapek and returning CEO Bob Iger, the media giant earmarked $60 mln in pay and severance for last year. By contrast, Apple boss Tim Cook is in line for a downsized $49 mln this year. Disney’s generosity is at odds with its poor succession planning.

Will Disney’s real activist please stand up?

13 Jan 2023

Dan Loeb started a campaign, but took an easy win. Nelson Peltz is using velvet gloves to persuade current boss Bob Iger to get the $180 bln media giant on the right track. But activists’ main job is forcing a regime change. At Disney, that’s going to take some muscle.