Publishing

Vivendi activist’s critique falls on deaf ears

1 Nov 2024

Pushy fund CIAM reckons a planned carveup of the 10-bln-euro media empire favours the controlling Bolloré clan. That’s true. Yet the split at least eases a conglomerate discount. And since voting it down would be a leap into the unknown, investors will probably just stay in line.

German IPO gives buyout shops scant cause to cheer

4 Oct 2024

Academic publisher Springer Nature rose 7% on its Frankfurt debut. But it had been offered at a tangible discount to help owner BC Partners offload a long-held stake. Private equity sellers in a similar position won’t get much encouragement to take the plunge too.

German $10 bln publisher IPO is buyout exit test

12 Sep 2024

BC Partners wants to list Springer Nature, after past floats of the group failed. Rivals imply a $10 bln valuation is possible. Private equity firms keen to get shot of over-leveraged deals will keep a very close eye on whether the seller gets anywhere near that level.

Media buyout would crown Bolloré’s empire-building

23 Nov 2023

The tycoon’s purchase of Hachette owner Lagardère is a smarter bet than his Italian foray. It offers good returns and will keep buyer Vivendi flush with cash. Using the funds to take the 9 bln euro media group private would square Vincent Bolloré’s M&A circle.

Capital Calls: Starboard vs. Murdoch

16 Oct 2023

Concise views on global finance: The investment fund wants the publisher of the Wall Street Journal to spin off its real estate assets a year after another activist agitated for a similar move.

Hollywood’s brief thaw belies a long winter

25 Sep 2023

The film and TV writers’ union has tentatively agreed to a contract. That will gin up content production for streaming services that came to a screeching halt during a five-month strike. The trouble is the entertainment complex from acting to distribution is flawed.

Simon & Schuster deal contains a financial mystery

8 Aug 2023

KKR is buying the publisher of Stephen King and Colleen Hoover for $1.6 bln from Paramount after trustbusters blocked a sale to Penguin Random House. Even with modest growth, a 25% annualized return looks feasible for the buyout shop. What’s unclear, however, is the exit plan.

Stephen King makes for unlikely antitrust hero

1 Nov 2022

A U.S. judge blocked Penguin’s $2.2 bln deal with rival publisher Simon & Schuster, after watchdogs argued it would unfairly limit pay for top authors. If the decision sticks, future mergers may be vetted based on their effect on workers as well as customers. It could get messy.

Financial edits befit New York Times

11 Aug 2022

Pushy investor ValueAct has taken 7% of the $5 bln news outfit, urging it to hawk a digital bundle a la Netflix. There’s logic to the idea, which could boost the top line. Targeting a family-controlled company is risky, however, even after cracking Japan’s stubborn boardrooms.

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.

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: GM, Hugo Boss, NYT, Frontier tech

4 Aug 2021

Concise views on global finance: The U.S. automaker finds inflation cuts both ways; the German-listed fashion brand hopes to double sales by 2025; advertising is a bright spot for the New York Times; Zymergen vaporized 75% of its value under four months after a $3 bln IPO.

Capital Calls: AMC craziness, Pro lacrosse

2 Jun 2021

Concise views on global finance: The movie-theater chain raised $230 million from a hedge fund, which promptly sold the shares at a profit; New England Patriots owner Robert Kraft and Alibaba's Joe Tsai are betting on the latest U.S. effort to professionalize the preppy sport.

Capital Calls: AT&T’s bankers, Blackstone in Italy

17 May 2021

Concise views on global finance: The U.S. telecom giant’s unwinding of its purchase of Time Warner is a gift for advisers on Wall Street; a court rules that the U.S. private equity firm’s 2013 purchase of Corriere della Sera’s HQ was valid.

Lagardere breakup can trade power for premium

26 Apr 2021

The Paris Match owner may unwind a legal structure which lets eponymous boss Arnaud keep control. Selling its publishing arm or travel retail stores could add more than 50% to the group’s 3 bln euro value. Investors like Bernard Arnault and Vincent Bolloré are ready-made buyers.

Capital Calls: SXSW

19 Apr 2021

Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.

Newspaper bidding war puts ESG on the front page

6 Apr 2021

Beneficent billionaires led by hotelier Stewart Bainum offered $680 mln for Tribune, topping a bid from hedge fund Alden. The white knights want to help U.S. newspapers like the Baltimore Sun find civic-minded owners. Yet price will decide if social good beats capital returns.

Murdoch has good reason to ruin publishing deal

24 Mar 2021

News Corp doesn’t like competitor Bertelsmann’s $2 bln deal for Simon & Schuster and has griped publicly about competition. Now UK watchdogs are probing. Book publishing makes up a fifth of its business. With the field shrinking, Murdoch needs to ensure he’s in pole position.

Capital Calls: Netflix, ECB, Glass Lewis, Zalando

16 Mar 2021

Concise views on global finance in the Covid-19 era: The streaming service’s password-sharing crackdown twists the knife; the central bank worries about identifying bad loans; the proxy adviser’s sale underscores its place on Wall Street; the online fashion giant’s bold targets.

UK’s Pearson listens to its own online lessons

8 Mar 2021

The 6 bln pound firm is doubling down on a year of virtual learning by selling education directly to individuals. Winning mass-market adherents will take time and is not a given. Yet anything that reduces its reliance on declining textbook sales is a step in the right direction.