Media & Entertainment

Disney Vegas would have a nice ring to it

7 Jul 2023

The $162 bln media company’s boss Bob Iger is feuding with Florida's governor despite having committed $17 bln investment to the state. Disney could send a message by taking portions of that to Sin City, which is becoming family-friendly and may welcome the income boost.

Embracer cash call undermines investors’ M&A play

6 Jul 2023

The Swedish gaming group raised $180 mln from various investors at a 9% discount to its closing price. Last summer, it raised $1.1 bln from Saudi Arabia at a 15% premium. The contrast suggests a lower chance of a takeover, meaning CEO Lars Wingefors faces a single-player slog.

Meta’s Twitter experiment is a long shot

5 Jul 2023

Now is the time for Mark Zuckerberg’s $730 bln social media behemoth to steal users from Musk’s network. And Meta has successfully ripped off ideas. But gaining users won’t move the needle on Meta’s massive base. Plus even before Musk, Twitter didn’t have a viable business model.

Mission Impossible: Paramount reckoning

5 Jul 2023

Everyone has a price and media mogul Shari Redstone is no different. The trouble is that her conglomerate’s TV networks alone are worth more than its $11 bln market value. Despite a rich history of breakups, it would take a financial Ethan Hunt to extract full value this time.

Macau wannabes risk being short of gamblers

29 Jun 2023

Japan and the UAE will soon have legal casinos; Thailand may follow. In theory Wynn, MGM and peers will have around $12 bln of new annual revenue to play for, more than Macau has raked in this year. But newcomers can’t rely on Chinese punters and their home markets are untested.

AI’s deflationary winds will blow away profits

27 Jun 2023

Artificial intelligence could add $8 trln a year to world GDP, McKinsey estimates, defying the gloom about robots replacing humans. Though companies should benefit from lower costs, consumers could use the technology to find better deals. It all adds up to lower prices.

Capital Calls: Canada is calling Meta’s bluff

23 Jun 2023

Concise views on global finance: The Facebook owner plans to pull news on its platforms in Canada after the country passed a bill that requires internet giants pay publishers. If Australia is any guide, Meta will eventually cave.  

Comcast rejigs media script after falling from Sky

16 Jun 2023

The $173 bln cable giant is discussing a cash dowry to lure buyers for its pay TV operator’s German arm. That would remove a distraction as CEO Brian Roberts hunts for a new deal. A sale may be hard to reach. But it’s better to cut the cord sooner than later.

‘Love Island’ maker can be saved by bold coupling

14 Jun 2023

ITV CEO Carolyn McCall is under pressure amid a scandal and a depressed share price. A breakup of the $4 bln broadcaster might help, but looks tricky. Bulking up the studio unit could create more value, if McCall can find a way to keep dividend-loving investors on side.

Capital Calls: Zee, Embracer

13 Jun 2023

Concise views on global finance: India’s securities regulator banned the media group’s CEO from holding any key managerial positions, putting its merger with Sony’s local unit under a cloud; the $3 bln video-game group’s new strategy hits the right buttons.

Berlusconi invented the entrepreneur as politician

12 Jun 2023

The tycoon-turned-Italian premier has died aged 86. He pioneered the use of wealth and media to achieve political power. Though his party is unlikely to survive his departure and his business empire is much weakened, his unorthodox methods spawned imitators across the West.

Gaming transatlantic gap invites M&A shoot-’em-up

9 Jun 2023

Shares in European gaming groups like Ubisoft are off by a fifth over the past year, underperforming stateside peers. Self-inflicted slip-ups are partly to blame, but players’ love for US-owned blockbusters means the valuation divide will endure. Dealmaking is a likely endgame.

Telegraph’s $750 mln price implies vanity contest

8 Jun 2023

The UK newspaper’s parent group may be up for sale after its owners failed to repay bank loans. The possible valuation, based on media reports, is steeper than the listed owner of the Daily Mirror. But an influence-seeking billionaire could find ways to justify it to themselves.

Pricey services are weary ratesetters’ last battle

1 Jun 2023

The rising costs of flights, restaurants and concerts are hampering central bank efforts to drag consumer price inflation back down to 2%. In the US the post-pandemic consumption boom is fading. In Europe and the UK, though, higher wages are prolonging the fight.

Paramount’s cast addition hints at exciting finale

31 May 2023

Byron Trott’s firm is joining scion Shari Redstone and billionaire Warren Buffett as a backer of the $10 bln media empire. Its capital infusion should help ease debt concerns for the controlling shareholder. The banker’s family-business ties also dangle the prospect of a buyout.

Elon Musk is Beijing’s ideal foreign investor

31 May 2023

Officials rolled out the red carpet for the billionaire’s first visit since 2020. His EV investments stimulated local brands, he’s made Twitter amenable to authoritarians, and he shows the People’s Republic is still investable. That buys Tesla lots of political cover in China.

It’s Netflix’s world, rivals just stream in it

24 May 2023

Disney, Warner Bros Discovery and Paramount are shifting strategies to stem losses on their TV and film services. Spending to amass subscribers is no longer the priority. Programming remains expensive, however. As the industry reshapes, its $160 bln pioneer retains star quality.

Capital Calls: Embracer fail dents credibility

24 May 2023

Concise views on global finance: Shares in the $3 bln maker of shoot-’em-up video games fell nearly 45% after a mystery partnership agreement fell through at the eleventh hour.

Disney can play Scrooge with Florida

19 May 2023

The $170 billion media company has cancelled a $1 bln project in the state, favoring California. If political wrangling between the two sides continues to intensify, the House of Mouse’s pullback from Florida promises even more pain for Governor Ron DeSantis.

Capital Calls: BT, Mediobanca

18 May 2023

Concise views on global finance: The 14 bln pound UK telco’s vague guidance is a concern for its two big shareholders seeking to recoup losses; the 8.5 bln euro Italian bank buys its biggest boutique yet.