Media & Entertainment

Why Spotify’s Daniel Ek is sticking with Joe Rogan

7 Feb 2022

The streaming group’s CEO condemned the talk show host’s use of racial slurs but refused to axe him. Ek is betting that financially motivated music labels will resist artist boycotts, and that users are locked in. Rogan represents a podcast pivot that’s key to boosting earnings.

Facebook’s grip on online ads may be slipping

2 Feb 2022

Parent Meta Platforms lost some $200 bln of market cap after an earnings report that suggested weaker-than-expected advertising growth to come. Headwinds ranging from Apple to TikTok are part of the problem; Mark Zuckerberg’s expensive pivot to the metaverse doesn’t help.

Shine keeps coming off AT&T-Discovery deal

1 Feb 2022

The U.S. telecom giant is cutting its dividend as it puts finishing touches on its deal with Discovery. The $43 bln of cash AT&T will get for its streaming assets is helpful. But as the deal nears, shareholders’ muted reaction raises the question of whether it’s worth the effort.

Rogan deal blunts Spotify’s edgy podcast appeal

31 Jan 2022

The streaming service is slapping advisories on its shows after a Joe Rogan Covid-19 misinformation spat. The compromise stops CEO Daniel Ek looking like a censor, and cuts the risk of music subscribers tuning out. But the promise of balance in podcasts may reduce their allure.

Breakdown: Real profit and loss in the metaverse

28 Jan 2022

Mark Zuckerberg is on the case, and nascent virtual spaces like Decentraland could be the next social-networking hit. Breakingviews unpacks the metaverse, what it offers users and investors, and the risks.

Ambani brings big guns to India’s streaming wars

28 Jan 2022

The Reliance boss is close to a tie-up with James Murdoch and Uday Shankar that will turn his TV network into a formidable rival to Disney, Sony-Zee and Amazon. It’s likely to add more ammunition to the battle for content. That will please viewers but also lead to overspending.

AT&T and Discovery’s tie-up has a Netflix quandary

27 Jan 2022

The telecom firm added 4.3 mln subscribers for its HBO service, soon to be part of a media joint venture with Discovery. But Netflix’s stock crash suggests streaming valuations have slumped. That takes some of the shine off “Succession” parent WarnerMedia’s upcoming union.

Facebook’s crypto demise is a missed opportunity

27 Jan 2022

The social network’s digital asset group is winding down under regulatory pressure. Though Diem Association’s links with Facebook proved toxic, ex-member firms like Visa could have made cryptocurrencies respectable. Meanwhile, watchdogs have done little to rein in riskier coins.

Capital Calls: TCI’s railroading tactics

26 Jan 2022

Concise views on global finance: The fund run by Chris Hohn has settled with Canadian National after a messy battle for the board.

Capital Calls: GE’s Larry Culp learns to say “no”

25 Jan 2022

Concise views on global finance: It will be a while before the industrial conglomerate’s markets normalize, and its planned breakup takes place. In the meantime GE is trying to cut costs and be more selective. That means less revenue, at least at first.

Pandemic darlings now need reinvention

21 Jan 2022

Netflix and Peloton stocks tanked as it became clear lockdown fortunes are changing. Investors may be overreacting to a dose of business reality. Even so, such companies' success has invited copycats, and they’ll have to change to stay ahead.

Netflix could be Activision’s Plan B

20 Jan 2022

Microsoft’s $69 bln bid for the “Call of Duty” maker may fall foul of trustbusters – and the same issue could deter other tech firms like Alphabet and Meta Platforms. That creates an opening for Netflix. Activision could neatly further the streaming giant’s video game ambitions.

Capital Calls: Siemens Gamesa, Psych SPAC

21 Jan 2022

Concise views on global finance: The 11 billion euro wind turbine manufacturer serves up its third profit warning in nine months; Hope for drugs to treat depression is tempered after rivals suffer mishaps.

Gaming M&A frenzy gives Europe extra powers

19 Jan 2022

U.S. giants have launched $82 bln worth of deals in a week. Creators like Ubisoft and CD Projekt may not fit Take-Two’s mobile-at-all-costs model. But Microsoft’s tilt at Activision awards bonus points to cloud gaming and original content. That plays into European gamers’ hands.

Capital Calls: UK bid gets hedge funds off hook

17 Jan 2022

Concise views on global finance: Private equity group Triton sweetens its offer for pharma group Clinigen to 1.3 bln pounds, raising the chances of hedge funds accepting the deal.

Crown plays its cards well with Blackstone

13 Jan 2022

The embattled Aussie casino empire is ready to drop its poker face and back the buyout firm’s fourth bid, sweetened to $6.4 bln. Blackstone’s impressive turnaround track record in hospitality deals leaves it well-placed to maximise returns, even after the multiple price hikes.

Disney can follow WarnerMedia breakup blueprint

7 Jan 2022

Mickey Mouse’s parent company has a sprawling business that, like AT&T’s soon-to-be-former content service, isn’t getting full credit for its value. WarnerMedia’s decision to ditch one of its networks has sticking points. But Disney could benefit from doing a spinoff 2.0.

Walmart gets taste of the Lotte treatment in China

7 Jan 2022

Officials lambasted the U.S. retailer for network security problems, in what looks like blowback over allegations that Xinjiang-made products were yanked from shelves. The South Korean chain was hounded out of China by similar methods. Worst case, Walmart could share that fate.

Invesco walks very fine line on Sony-Zee deal

7 Jan 2022

The U.S. fund won key concessions in the $7 bln entertainment merger, but it’s also mixed up in a lawsuit over the Indian broadcaster blocking its call for a shareholder vote. Court defeat would set an ugly governance precedent. Victory, however, risks blowing up the transaction.

Theranos jury draws a line between hype and lies

4 Jan 2022

Elizabeth Holmes, who touted non-existent capabilities for her now-defunct blood-testing startup, has been convicted of defrauding investors. If it stands, she faces jail time. Even in Silicon Valley, there's a limit to how flagrantly founders can fake it until they make it.