Media & Entertainment

Alphabet fiddles as app-store antitrust fire burns

24 Mar 2022

The $1.8 trln Google parent will let Spotify use its own payment service, skirting a 15% fee. The move piles pressure on rival Apple to do the same. But it’s just a pilot project and probably still includes a hefty charge. U.S. and EU regulators may force the duo to go further.

Capital Calls: Renault out of Russia

24 Mar 2022

Concise views on global finance: Dire prospects for the sanctioned economy make the French carmaker’s decision to leave rational, but costly.

Nielsen bid rejection deserves bad viewer response

21 Mar 2022

The video-ratings group dismissed a $9 billion bid from Elliott and others, a move that sent its shares down sharply. It's OK to hold out for a higher price, and that could be the endgame. But the standalone case for Nielsen is too optimistic, and too late, to be convincing.

AMC’s diversification is anything but golden

15 Mar 2022

The $7 bln theater chain is taking a 22% stake in gold miner Hycroft. The main thing the companies share is a relationship with investor Mudrick. AMC could use a revamp and creative solutions might work. But an idea so outlandish undermines other more plausible possibilities.

Discovery CEO pay starts new era on wrong footing

15 Mar 2022

David Zaslav was awarded $247 mln for heading the TV firm in 2021, twice what Tim Cook got for running Apple, a company 200 times bigger. Shareholders don’t get a say on Zaslav’s slab of cash and options. But they will after its merger with WarnerMedia, and it may not be pretty.

Capital Calls: Americans accept inflation for now

10 Mar 2022

Concise views on global finance: U.S. prices rose a whopping 7.9% year-on-year in February. Even so, Russia’s invasion of Ukraine has improved President Joe Biden's approval ratings. It may not last.

Amazon one-ups No. 1 antitrust critic Lina Khan

4 Mar 2022

Time may be running out for the FTC to review the $1.5 trn e-commerce giant’s $8.5 bln deal for MGM. The agency’s chair rose to prominence urging lawmakers to rethink monopoly laws using Amazon as exhibit A. She may struggle to show that her bite is as big as her bark.

Disney without cricket risks its streaming game

3 Mar 2022

IPL rights held by the Mouse House are up for grabs. Sony and Reliance are pumped-up contenders, and bids may hit $6 bln – well over double the 2017 price. India is the fastest-growing hub for Disney+ but minus the popular game, boss Bob Chapek can kiss subscriber gains goodbye.

Trump’s Truth Social is an overvalued threat

25 Feb 2022

The former U.S. president launched his social media app after Twitter and others booted him from their platforms. Twitter’s slowing growth suggests he might be able to capture a unique following. But based on its users, its $20 bln market cap is at least double fair value.

Minnow TV deal highlights regulatory sharks

22 Feb 2022

A fund partnering with Apollo is offering $9 bln for broadcaster Tegna. The nature of the deal and the sector’s challenges suggest antitrust shouldn’t be a problem. But a fee that ups the deal price if approval drags on shows regulatory threats abound even for innocuous mergers.

European telco merger hopes disregard past signals

21 Feb 2022

EU watchdogs have previously blocked consolidation between mobile operators. Now executives like Vodafone boss Nick Read, urged on by activist investors and buyout firms such as KKR, are once again pushing for deals. But the case for protecting competition remains compelling.

Paramount’s streaming revamp is an uphill struggle

16 Feb 2022

ViacomCBS is rebranding to emphasize the media group’s Paramount+ service, which has 33 mln subscribers. Content costs are ballooning just as investors grow skittish about leader Netflix’s growth. A 20% share price drop on Wednesday widens the valuation gap with larger rivals.

India ramps up the cost of Chinese cash

16 Feb 2022

New Delhi is determined to curb Beijing’s influence in its tech sector. For local startups like Paytm and Zomato, unwinding Chinese investment is a pain. Foreigners like Singapore’s Sea may face a starker choice: cash from the People’s Republic or access to India’s growth market.

Capital Calls: EVs run over ethanol and gas

15 Feb 2022

Concise views on global finance: Farmers and oil barons are set for more fights after a recent study showed the biofuel is likely at least 24% more carbon-intensive than gasoline. They are missing the bigger threat.

Wynn rolls the dice in search of a new prize

15 Feb 2022

Craig Billings, the $11 bln casino group’s third boss in four years, could use a growth engine. A long slog awaits in Macau even as the mature Las Vegas market rebounds. Rival Sands found success in Singapore. The odds are longer for Wynn’s push into online betting and the UAE.

Review: Hollywood’s China tragedy, in three acts

11 Feb 2022

In Erich Schwartzel's "Red Carpet", Tinseltown spots a lucrative opportunity, then starts a decades-long courtship of what becomes the world's biggest box office. Now Disney and rivals face a hostile Beijing and rising nationalism. It's a classic in the cautionary tale genre.

Twitter share buyback is an odd way to take flight

10 Feb 2022

New CEO Parag Agrawal plans to repurchase $4 billion in stock. He will also spend more to improve tepid revenue growth. But tough competition and the $30 bln company’s slim slice of the ad market mean Agrawal could do with keeping more in the coffers to help him hit his targets.

Viewsroom: Spotify, Peloton and failed chip deals

10 Feb 2022

Neil Young’s podcast protests have shone a light on a potential flaw in Spotify’s business model, says Liam Proud. Peloton highlights the danger of giving company founders too much voting power, Rob Cyran argues. And semiconductor M&A gives global antitrust regulators agita.

Disney closes gap with Netflix in value, not risk

9 Feb 2022

The Magic Kingdom’s streaming service Disney+ now has 130 mln subscribers, narrowing the gulf with its bigger rival. Investors value the two firms’ earnings on a similar multiple. Yet even though Netflix is now a smaller company by market value, it’s Disney that’s the greater gamble.

Capital Calls: Continental, Harley-Davidson

8 Feb 2022

Concise views on global finance: German car-parts maker Continental may spin off its self-driving unit, while the iconic maker of motorbikes has turned supply shortages to its own advantage.