Media & Entertainment

Apple’s cash insures against exuberance

3 Nov 2023

The $2.8 trln iPhone maker’s valuation is rich even as growth slows, antitrust worries cloud its services business and trade wars threaten China sales. While investors seem as confident as ever, the company’s balance sheet suggests boss Tim Cook is exercising some caution.

Amusement parks win $8 bln M&A consolation prize

2 Nov 2023

Cedar Fair and Six Flags are ending respective wild rides by uniting in an all-stock deal. They expect to slash costs and boost sales, optimistically worth $1.6 bln. It promises to be a fun adventure, but disappointing when compared to the thrills they had in store a year ago.

Disney walks open-eyed towards Reliance mousetrap

31 Oct 2023

Bob Iger’s $147 bln media giant may sell a majority stake in its India business to Mukesh Ambani’s conglomerate, per Bloomberg. The division is losing money and subscribers, mostly to a Reliance-owned rival. A deal at half the value when Disney took control would be a victory.

Disney nudges ESPN closer to break-up prime time

19 Oct 2023

The entertainment giant disclosed the finances of the sports network in which boss Bob Iger wants to sell a stake. At first glance, ESPN could be worth nearly $30 bln. The shape of any deal is up for grabs, but at least Disney shareholders have a clearer view of what they own.

Netflix’s future is gaming, not streaming

19 Oct 2023

The $155 bln company’s jump in subscribers helped revenue growth pick up pace. But tweaks to its business model will only get tougher with cash-rich rivals Apple and Amazon. Netflix’s shift to gaming is a better bet. Warner Bros Discovery shows it can be a golden goose.

‘Tomb Raider’ maker’s odyssey charts gaming pains

12 Oct 2023

Embracer’s share price is back at 2018 levels, when it stepped up an M&A spree that saw it become Europe’s largest video game group. The $2.5 bln Swedish firm has slipped on its own banana skins. But its decline also shines a light on the sector’s post-pandemic struggles.

Disney has a weak hand in activist rematch

9 Oct 2023

The $152 bln media giant promised cost cuts to sate cage-rattler Nelson Peltz earlier this year. But that is slow-going and the stock has since fallen by a quarter while peers are up. Now the activist is back and wants a board seat. A weakened Disney’s best bet: invite him in.

Meta’s EU subscription looks suspiciously pricey

3 Oct 2023

The Instagram owner may allow Europeans to pay $14 a month to avoid ads. It’s hard to see many users signing up, and the price is far higher than Meta’s regional revenue per user. Regulators and courts, which effectively pushed for this outcome, may get a phantom solution.

Telegraph contenders have three boxes to tick

3 Oct 2023

Suitors are eyeing the UK newspaper, which lender Lloyds recently seized and may now sell for up to 600 mln pounds. The best bid will have a high valuation, a good chance of gaining regulatory approval and solid financial backing. None of the approaches so far offer all three.

Capital Calls: Food prices, Brookfield, SPAC spin

3 Oct 2023

Concise views on global finance: The cost of ingredients for the average UK meal fell 0.1% in September; the Canadian giant’s $1 bln renewables deal reflects how European green assets are getting more appealing; Singapore’s SPAC puts a new spin on blank-cheque targets.

Microsoft’s gaming M&A takes it to the next level

27 Sep 2023

The $2.4 trln group’s Activision deal has been picked at by regulators, and it’s exposed to consoles that may be upended by cloud gaming. Still, the $69 bln play diversifies Microsoft into mobile. And it leaves the group better placed to fight the industry’s content wars.

Capital Calls: Net neutrality is back, again

26 Sep 2023

Concise views on global finance: US regulators want to reopen a decade-old fight over the internet’s rules of the road. But just like merger cops who have struggled to gain traction, they are trying to use yesterday’s tools to predict tomorrow’s problems.

Rupert Murdoch will redefine chair emeritus

21 Sep 2023

The 92-year-old media mogul is ceding his role co-running the Fox and News Corp boards, accepting the retirement honorific as his son Lachlan takes charge. By tiptoeing out, he at least cements succession. There can be no doubt, however, that his ongoing presence will be felt.

Capital Calls: Disney, Cazoo

20 Sep 2023

Concise views on global finance: Boss Bob Iger’s $60 bln splash on theme parks and cruises invites further scrutiny of the Magic Kingdom’s wild cash flow ride; the UK-based online car retailer, valued at $7 bln in a SPAC deal two years ago, is handing the keys to bondholders.

Capital Calls: Planet Fitness

18 Sep 2023

Concise views on global finance: The gym chain’s share price hit a three-year low on news of its longtime boss’s exit. Rising interest rates have made it costlier to open new locations. Boosting prices could help, as it has at rival Life Time.

Apple investors grow fat on iPhone’s thinning buzz

12 Sep 2023

The tech giant’s latest handset, to be unveiled Tuesday, may offer incremental improvements. Sharper pictures and faster charging won’t spur many upgrades. The $2.8 trln group’s main innovation is persuading investors to pay a higher multiple for slower-growing revenue.

DOJ fights uphill battle; Google a losing one

12 Sep 2023

A trial kicked off that pits the search engine’s $1.7 trln owner against the US Department of Justice. Google gleans data freely given and has beaten other rivals. That makes the government’s case tough. By fighting it, though, the tech firm risks exposing its creepy reach.

Pinault’s Hollywood foray is untimely distraction

8 Sep 2023

The French tycoon will buy a majority stake in talent agency CAA, valued at $7 bln. The Tinseltown escapade offers diversification from luxury giant Kering. But it may complicate CEO François-Henri Pinault’s attempt to revive star brand Gucci while digesting other large deals.

Apple’s high valuation exposes it to China’s whims

7 Sep 2023

The $2.8 trln tech giant's shares lost 7% in two days after reports said Beijing will impose a ban on officials using iPhones. Current retaliatory measures shouldn’t matter much to valuation. But more draconian assumptions show a problem, especially at Apple’s elevated multiple.

Capital Calls: Warner Bros’ Max, GameStop

7 Sep 2023

Concise views on global finance: The HBO-parent intends to offer live sports and news to its streaming package. Customers will end up footing the bill; the $6 bln video-game retailer turned itself from a meme stock to a viable company by recovering through cost cuts.