Media & Entertainment

It’s not so bad being a bubble stock after all

3 Aug 2022

GameStop, Microstrategy, AMC, and even Robinhood all attracted irrationally exuberant investors. Now an obscure Hong Kong company has caught a similar wind. Sure, the air has come out of most of the hype. But companies have ended up better off than they would have been otherwise.

Antitrust watchdogs go big on drama, light on plot

1 Aug 2022

Penguin’s merger with fellow publisher Simon & Schuster is going to trial; Facebook owner Meta faces a battle over its deal with a virtual fitness firm. Both cases test out new storylines crafted by the U.S. competition watchdogs. But by getting creative they risk missing meatier targets.

Women’s soccer kicks off virtuous financial circle

1 Aug 2022

England’s “Lionesses” won the European Championship in front of 87,000 fans with millions watching at home. That suggests public interest not far off the men’s game. If soccer follows tennis in closing the gender revenue gap, there will be big bucks for players – and for clubs.

Netflix only partly dressed for ad auditions

19 Jul 2022

The $90 bln streaming service’s subscribers grew faster than expected, boosting revenue and sending shares up 7% after Tuesday’s close. But cash flow is still under pressure. As the ads business kicks in, Netflix can’t rely just on lazy users. Eyeballs on content matter more.

China Inc offers 360 view of SPAC last hurrah

14 Jul 2022

Carmaker Chijet is merging with a blank-cheque vehicle that planned to scout for healthcare firms. Video streamer Glory Star, bought by a SPAC in 2020, is accepting a net buyout price barely equal to last year’s earnings. They are fitting examples of a distorted and dying market.

Disney boss’s next challenge: win over investors

6 Jul 2022

The $177 bln company’s board gave Bob Chapek three more years at the helm despite a rocky start. But with video streaming in danger of slowing and the shares down 40% year-to-date, the CEO needs some financial magic. Offloading the ESPN sports network would restore value.

Too bad Netflix isn’t on the block

23 Jun 2022

Boss Ted Sarandos is exploring an advertising partnership to supplement the $80 bln firm’s subscription service. Yet media alliances – Netflix, Hulu, others – have turned ugly. Netflix’s valuation has fallen steeply, and it needs deep cash coffers. A better idea would be a sale.

LIV Golf finds that Saudi money can’t buy love

23 Jun 2022

The rebel league is Riyadh’s latest PR pitch to the global business crowd. Fairways lined with gold have managed to hook a handful of names. But a lack of major broadcast deals and top drawcards like Tiger Woods or Rory McIlroy means LIV is likely to miss the financial cut.

Euromoney offers warm glow in buyout freeze

21 Jun 2022

The London-listed financial data and events firm is evaluating a $2 bln takeover offer from a private equity consortium. Despite a chunky premium, the buyer can make a decent return with a modest margin boost and limited debt. These qualities may yet attract other bidders.

Baidu video sale hints at a China tech plot twist

16 Jun 2022

The search-engine operator may divest its Netflix-like streaming arm in a $7 bln deal. Ordinarily rivals like Tencent would welcome the opportunity, but the recent anti-trust crackdown will deter them. That clears the way for otherwise unlikely bidders, including state companies.

Cricket rights will bowl India Inc a new line-up

10 Jun 2022

A third of teams in the sport’s premier league fit poorly with owners like Diageo. One, Reliance, wants the broadcast rights too. CVC’s entry into the club creates more uncanny parallels to a changing corporate India. The outcome of the $6 bln TV auction may spur a clean-up.

Netflix M&A ad ponder has expensive logic

9 Jun 2022

Boss Reed Hastings has opened the door to advertising as an alternative source of revenue to combat a decline in streaming subscriptions. Buying a platform to kickstart the initiative makes sense – Roku is an obvious candidate. The problem is that prices are still too high.

Chinese movie industry screens business tragedy

8 Jun 2022

Box office takings touched a 10-year low during the recent holiday weekend. While China overtook the U.S. market during the pandemic, in absolute terms it’s contracting, a trend reflected in share prices for companies like IMAX China. The damage could be permanent.

Casino SPAC is for hardened gamblers only

7 Jun 2022

A legal battle over Okada Manila resort turned physical when its ousted boss seized the property last week. That could scupper its $2.7 bln deal with a U.S. blank-cheque firm. But unfriendly politicians, dubious financial reports and more stack the odds against investors, too.

AC Milan’s soccer triumph rubs off on Elliott

1 Jun 2022

The U.S. fund is selling the Serie A winner to private equity firm RedBird for $1.3 bln, nearly 5 times sales. That’s rich for a club with chronic losses. After a challenging first half and the pandemic, Elliott looks to have made a respectable return from the Italian team.

Tech giants pick odd time for ad break

1 Jun 2022

Netflix, Sony and others are mulling commercials in shows and games. Given how ad spending gets hit in a downturn, the timing looks curious unless it offsets hard-up consumers cancelling subscriptions. The big winners are the ad-tech firms like Trade Desk making it happen.

Snap! Elon Musk has another Twitter excuse

24 May 2022

The disappearing message app abruptly slashed its quarterly profit forecast, sending shares spiraling nearly 40%. That’s an ominous sign for Twitter, which like Snap, relies on brand advertisers. It also gives the Tesla boss another reason to bail on buying the social platform.

Tencent gives China bulls little to run with

18 May 2022

The $450 bln video-games giant said sales stalled in the first quarter, below expectations. Despite signs Beijing may rein in tech crackdowns, the government’s Covid-19 lockdowns are creating more uncertainty. Investors hoping to ride out the volatility will get no such reprieve.

Tencent Music sets sombre tone for China tech

17 May 2022

Quarterly sales slumped 15% to $1 bln thanks to the triple whammy of a slowing economy, more competition and new regulations. It'll be a familiar refrain for the Spotify-like group's $430 bln parent and peers. Focusing on profitability over growth should hit the right notes.

“Temptation Island” SPAC dangles drama and sequels

11 May 2022

Banijay, maker of the reality TV show, will merge with betting firm Betclic through a blank-cheque firm, valuing both at 7 bln euros. It’s an odd mix with few synergies, offset by a reasonable valuation. Founder Stéphane Courbit gets a cleaner balance sheet for more deals.