Telecommunications

Stars align for a new Sky takeover attempt

7 Jul 2016

The drop in the pound could tempt Rupert Murdoch’s Fox to bid for the 61 pct it doesn’t own of the UK pay-TV operator, after failing to do so in 2011. It would leave Fox investors more exposed to Europe. Still, if the Murdoch clan is bullish, there’s no time like the present.

French foray into Italian mobile will be hard slog

6 Jul 2016

France’s Iliad will create a fourth mobile operator in Italy as part of Hutchison’s plan to merge its 3 Italia with Vimpelcom’s Wind. Iliad disrupted the French market when it burst on the scene in 2012 but Italian prices are already low. It may struggle to make the same splash.

Japan’s chat app IPO is more Twitter than WeChat

1 Jul 2016

Messaging platform Line is going public with a valuation of up to $6.6 bln. Like Chinese rival WeChat, it has lured millions with games and virtual stickers. Yet its user base has stopped growing. Like Twitter, it must now try to squeeze more revenue out of those people.

Brazil’s Oi struck by national-champion curse

21 Jun 2016

The phone company’s bankruptcy filing with $19 bln of liabilities owes a lot to state meddling. Born of a government-backed merger, Oi has struggled with debt and mandatory investment. Like the upheaval at oil giant Petrobras, the tale is salutary for future administrations.

SoftBank’s long-term plan abruptly cut short

21 Jun 2016

Heir apparent Nikesh Arora is quitting after Masayoshi Son opted to keep the reins at the Japanese tech group. In just two years, the ex-Googler was paid over $200 mln and spent billions. The succession mess leaves SoftBank and its mercurial founder as hard to read as ever.

Vodafone’s $2.4 bln deal makes a bundle Down Under

9 Jun 2016

The mobile giant is injecting its New Zealand unit into local pay-TV operator Sky Network in return for a 51 pct stake. Joining forces should help as phones, television and the internet converge. Vodafone is giving Sky shareholders a helping hand to get the deal done.

T-Mobile share giveaway is endearing if odd call

7 Jun 2016

The U.S. mobile carrier is rewarding customers with stock in the company. It’s a twist on similar ideas tried by Boston Beer and Vonage. Boss John Legere’s marketing gimmicks have attracted new subscribers. This may be a less costly ploy, if the clunky process doesn’t interfere.

Philippine telco tie-up a blow to Asian upstarts

30 May 2016

The country’s mobile phone duopoly will jointly pay $1.5 bln for San Miguel’s telecom assets after the conglomerate’s effort to set up a new operator failed. From Thailand to India, new entrants are trying to take on big players. Access to capital and knowhow decides who wins.

Italian broadband has a new Romulus and Remus

25 May 2016

Utility Enel looks likely to win the bidding for fibre-optic group Metroweb, beating Telecom Italia. What follows may have shades of the twins who fought over the building of Rome. If so, Enel should be daunted, TI worried and Italian broadband users overjoyed.

How a $12 bln UK buyout could ring up returns

20 May 2016

Private equity is reportedly circling Telefonica’s local unit after Brussels blocked a sale. That would be one of Europe’s largest-ever leveraged buyouts. The numbers might just add up - if the buyers can get O2 for a reasonable 8.5 bln stg or so, and then lift margins.

Nokia phone demise a warning for all tech giants

18 May 2016

Microsoft finally ditched the basic handset business in a deal that will see the devices reborn under the control of former Nokia bosses and Foxconn. The $350 mln sale price for the former crown jewel of a $300 bln enterprise is a testament to how quickly tech empires can vanish.

Vodafone ambitions reflect tougher telco times

17 May 2016

The $85 bln mobile group has finished a $30 bln networks splurge. It also thinks EBITDA will grow between 3 and 6 pct this year. The wide range reflects the fact that its main markets are highly competitive. Given the EU’s tougher line on mergers, this won’t get any easier.

Dish short fund has investor appeal – at a price

12 May 2016

Kerrisdale Capital has raised $100 mln to bet that the value of Charlie Ergen’s $22 bln satellite-TV concern will plummet. The thesis is plausible and investors crave ideas that could pay off big. But one-stock funds are also “heads we win, tails you lose” setups for managers.

EU sets high antitrust bar for future telco deals

11 May 2016

Despite blocking the purchase of the UK’s O2, Margrethe Vestager claims she doesn’t have a one-size-fits-all approach. The UK market does have idiosyncrasies, and the antitrust tsar raised legitimate concerns. But Brussels is hardening its stance on the risks from consolidation.

Brussels O2 veto cements BT’s home advantage

11 May 2016

The EU’s antitrust tsar has rejected CK Hutchison’s 10.3 billion pound takeover of O2, because it says it would raise mobile prices. That leaves several UK players figuring out next steps. In an industry moving towards packages of mobile, landline, broadband and TV, the winner is the beefed-up BT.

Altice’s wily Cablevision math adds up to trouble

10 May 2016

Patrick Drahi’s telecom group told investors it can cut $900 mln in costs to justify the $18 bln U.S. cable acquisition. To appease New York officials worried about service, Altice is using a shorter timeframe to tout a $450 mln sum. Both constituencies will end up disappointed.

Nokia could spend a year on hold

10 May 2016

The Finnish telecoms group saw a 9 percent year-on-year drop in Q1 sales, in the first combined set of numbers since its 15.6 billion euro Alcatel-Lucent tie-up. Gross margin improved and synergies have been revised up. But slow mobile equipment sales remain a standout.

Hulu live-streaming plan risks ire of cable giants

4 May 2016

The online video service backed by the likes of Disney and Fox may offer consumers something that’s a bit like a cable package. It’s another way to bypass distributors, but it could also hand the content makers’ biggest customers more sway in crucial fee negotiations.

UK deal veto would be big setback for Li Ka-shing

4 May 2016

A $15 bln takeover of Telefonica’s O2 unit was key to making the Hong Kong tycoon’s costly bet on European telecoms pay off. If CK Hutchison cannot overturn a likely EU veto, his UK telco will either have to carry on as a disruptive fourth player, or find a fallback deal.

TV tech deal is must-see M&A

29 Apr 2016

Rovi’s $1.1 bln purchase price for digital-recording pioneer TiVo should mostly be covered by $100 mln in expected cost savings. Stock rises are rarer for corporate buyers as mergers have become financially irrational. This one suggests there can still be another way.