Publishing

Golden parachutes perched at last on ejection seat

8 May 2014

Investors at U.S. media giant Gannett voted a majority of their shares in favor of ending takeover-related payouts for boss Gracia Martore and other officers. Though non-binding, the results send Corporate America a message that momentum is building against unwarranted rewards.

Review: An unreliable guide to inequality

14 Mar 2014

Thomas Piketty’s chunky book on “Capital in the 21st Century” has been widely hailed. But his key equation is faulty, his sociology crude and his historical analysis doubtful. Still, there are good ideas, and the big policy suggestion – a progressive tax on capital – is sensible.

Springer’s lavish dividend will be hard to sustain

6 Mar 2014

Germany’s largest publisher has upped its dividend despite seeing profit fall. If Axel Springer emerges as a winner in digital publishing, it will be lauded for its commitment to its payout policy. But it has set itself a high hurdle given the changes buffeting its industry. 

Pearson has to sell investors on recovery story

28 Feb 2014

The educational publisher has followed a profit warning for 2013 with surprisingly low guidance for the current year, sending the shares tumbling again. Pearson is struggling to adapt to change in its U.S. market. CEO John Fallon has yet to demonstrate it’s just a cyclical blip.   

Buffett’s folksy ways evoke quainter trading days

21 Feb 2014

The Omaha billionaire pulled the plug on hedge funds buying a feed from his Business Wire. Buffett has expressed distaste for high-speed trading, too. Though it can be parasitic, there are also benefits. Nostalgia is best reserved for Cherry Coke, not open-outcry stock dealing.

Pearson’s small warning exposes bigger fears

23 Jan 2014

Shares in the educational publisher slumped 8 pct as Pearson warned of weakness in its U.S. business. Restructuring charges will be higher than expected too. It’s disappointing. But the size of the stock price reversal suggests investors have deeper-seated concerns. 

Used cars give The Guardian helpful cash in hand

21 Jan 2014

The UK news group will get about 600 mln stg, sources say, for its share of the auto-focused Trader Media. Apax, the current co-owner, is paying a decent price. As car dealers know, cash upfront is good. It will help underwrite the paper’s long and costly digital reinvention.  

Pearson makes a tidy turn in the merger market

29 Nov 2013

The UK publisher is selling Mergermarket to private equity at an enterprise value of 382 mln stg - far more than it paid for the news and data firm. Loyal subscribers, good cashflows, and potential bolt-on deals are probably bigger draws for the buyer than any M&A resurgence.

Eight questions for three Buffetts

23 Oct 2013

Warren Buffett’s son, Howard G., and his grandson, Howard W., have written a book chronicling their work on hunger, farming and poverty around the world. The three men talk to Breakingviews about the effects of inefficient markets, technology, tax policy and Berkshire Hathaway.

Axel Springer gets top euros for dead trees

25 Jul 2013

It’s easy to see why Germany’s largest publisher wanted to sell a third of a declining domestic print business. It speeds up the move to digital. It’s harder to know why a buyer was willing to pay 920 mln euros, 9.7 times 2012 EBITDA. Springer shareholders should be happy.

Review: "Balance" missing from analysis of decline

12 Jul 2013

Glenn Hubbard and Tim Kane try to draw lessons for today’s United States from the fate of past great powers. The economic analysis of historical falls from greatness is mostly convincing, but the application to America doesn’t stick. Preconceived ideas get in the way.

Buyout of teachers’ weeklies looks tricky. Discuss

9 Jul 2013

Is TSL a professional social network built on user-generated content? Or is the publisher of the Times Higher Education magazine a cyclical, ad-driven business that will struggle to grow overseas? Only the first answer will give new owner TPG top marks for its $600 mln investment.

EQT compromises to get Springer Science sold

19 Jun 2013

The Swedish buyout firm is selling the publisher for a decent-looking 3.3 bln euros to rival BC Partners. But it’s been a slog. A fallback IPO was imminent and a compromise forged through an “earn-out” clause implies BC still doesn’t quite believe the sellers’ rosy forecasts.

Murdoch may get three divorces for price of one

14 Jun 2013

As the media mogul heads for a third breakup, there’s at least one financial consolation: a smaller lifetime divorce bill than fellow billionaire Harold Hamm. Minus a prenup, the oil baron may forfeit $3 bln to his ex. Even after a $1.7 bln deal in 1999, Murdoch comes out ahead.

Sensible M&A rules airwaves in Gannett deal

13 Jun 2013

The newspaper chain’s shares surged on the back of its $2.2 bln plan to buy broadcaster Belo. That’s the reward when synergies cover nearly the entire equity value of a transaction. Boldness doesn’t always pay off so well, though, as the Indian takeover of Cooper Tire suggests.

Springer Science IPO: subscription needs research

6 Jun 2013

The academic publisher might raise 760 mln euros from a Frankfurt debut. Steady growth and high margins are appealing, but the rise of cheaper “open source” publications could prove hard to manage. To judge from the performance of Reed Elsevier shares, investors aren’t worried.

Bertelsmann faces 50 shades of digital challenges

26 Mar 2013

The success of the “50 Shades” erotic trilogy boosted Bertelsmann’s 2012 profit. Yet the media giant’s successful book publisher hides structural weaknesses. Many of the company’s markets are shrinking, and repeated attempts to adjust to the digital age haven’t been convincing.

Market dislike of Axel Springer is over the top

6 Mar 2013

The German media group spooked shareholders with news that the restructuring of its print unit and further digital investments will eat into 2013 profit. The fears look overdone. Springer is coping with the digital transition much better than most of its peers.

Pearson confronts harder financial times

25 Feb 2013

The media group has focused more keenly on educational publishing. But the digital revolution is transforming the staid world of textbooks. Making a successful switch will take time and money. And a fresh pledge to retain the Financial Times might disappoint some investors.

Penguin in bondage hides real risks in media M&A

27 Dec 2012

Three tie-ups from 2012 will alter media in 2013: Penguin-Random House, Universal-EMI and Disney-Lucasfilm. In books and music, the business case for consolidation is clear. Wags will giggle about “50 Shades of Penguin”, too. But the real cultural impact may be less benign.