Television

Sinclair programming the Trumpiest of all deals

15 May 2017

Buying rival broadcaster Tribune for $3.9 bln hinges on a regulatory rollback. Tiptoeing around synergies also means less attention on job cuts. And the merger befits the TV-watcher-in-chief. Not all M&A can achieve the Trump trifecta, but many will feature two key factors.

Sinclair $3.9 bln Tribune deal puts Fox in a hole

8 May 2017

The U.S. broadcaster is paying a 26 pct premium for its rival after Uncle Sam relaxed a wave of regulations. Tribune gives Sinclair more heft to mount a challenge to Rupert Murdoch’s Fox News. But it’s going to cost the buyer more than just the headline price tag.

ITV boss picks prime time to duck out

3 May 2017

Adam Crozier is leaving the UK’s largest free-to-air TV firm after seven years as CEO. His strategy of building up ITV’s production arm has been vindicated, but the vulnerability of ad revenue and the rise of digital giants like Netflix and Amazon will vex his successor.

TV deal stirs ghosts of erratic Murdoch past

1 May 2017

Not long ago, Fox boss James Murdoch told investors to "rest easy" about the idea of the company buying more local U.S. stations. Now, it's looking at $6 bln Tribune with Blackstone. The reversal amid its messy Sky merger is a throwback to Rupert Murdoch's capricious ways.

Vivendi’s Italy slap dents finances and ambition

19 Apr 2017

The French group’s stakes in Telecom Italia and Silvio Berlusconi’s Mediaset have fallen foul of plurality laws. Chair Vincent Bollore could sell either, appeal, or less painfully reach a workaround with Berlusconi. But the blunder undermines Bollore’s southern European push.

Fox scandals weaken Murdochs’ TV future

4 Apr 2017

Mercedes-Benz pulled its advertising after news that on-air host Bill O'Reilly has faced sexual harassment claims. The cost to Fox is low, for now. Yet as with, say, Uber, a toxic culture can damage long-run efforts to broaden consumer appeal – especially with younger cohorts.

ITV takeover is a hard story to pitch

4 Apr 2017

The UK free-to-air broadcaster’s shares have risen more than 15 pct in the last six months, partly on bid speculation. But ITV’s high margins and exposure to fickle TV advertising make a potential 12 bln pound price tag hard to justify – even for top shareholder Liberty Global.

Keep watching for a rule Trump can usefully kill

30 Mar 2017

U.S. broadcasters Sinclair and Tribune, worth a combined $7.5 bln, may be eyeing a merger in the hope of changes to regulations the president's new TV watchdog thinks are "antiquated." Ownership caps could use a rethink. Allowing more mergers would help keep the industry healthy.

France’s Macron passes first of three big tests

21 Mar 2017

The independent presidential hopeful was, according to a poll, the most convincing candidate in a debate where he had the most to lose. His next challenge is to win the election. Even if he does, legislative ballots will decide whether the ex-banker can deliver promised reforms.

ITV will struggle to fight solo in content wars

1 Mar 2017

The UK broadcaster’s revenue grew by 3 percent in 2016, as its production arm offset a bleak ad market. Low debt means ITV can add to its content locker, even after paying a special dividend. Stiff competition, though, suggests it might be better as target than acquirer.

Harry Potter conjures Japanese growth for Comcast

1 Mar 2017

The U.S. cable giant is paying $2.3 bln to buy out Goldman Sachs and other partners in Universal Studios Japan. The theme-park operator's success highlights a part of the Japanese economy where growing domestic consumption is no chimera. A boom in tourism helps too.

China’s soccer frenzy has early signs of fatigue

28 Feb 2017

A unit of LeEco has lost the rights to screen top Asian matches after missing a payment on a $100 mln-plus deal. The cash-strapped group has unique problems. Still, Chinese investors have poured record sums into the sport. Some others have probably over-stretched too.

CNN could find prime-time slot at CBS

21 Feb 2017

Time Warner shareholders just approved AT&T's $85 bln purchase of the HBO owner. But U.S. regulators may still require concessions, perhaps including a sale of CNN. Even with a $9 bln price tag, a deal could make strategic and financial sense for Les Moonves at CBS.

Disney boss risks overstaying his welcome

6 Feb 2017

Bob Iger may delay ending his 12-year reign atop the House of Mouse, a sign the firm has failed to find an heir since Tom Staggs left last year. CEO longevity has its uses. But as Lehman's Dick Fuld and Iger predecessor Michael Eisner can attest, clinging to power can get messy.

CBS scrubs up with messy radio deal

2 Feb 2017

The $30 bln U.S. TV broadcaster has at last found a way to offload its storied but unwanted audio business. It's a rare and complicated two-step with smaller rival Entercom. If it works, CBS boss Les Moonves should be better positioned to join the bigger wave of media M&A.

Mediaset shares on the up bit of a rollercoaster

21 Dec 2016

Silvio Berlusconi's group has soared in value on hopes of a takeover by Vivendi, controlled by Vincent Bollore. The French tycoon may still unlock a breakup value higher than the current share price. Yet his objectives aren't clear, and Mediaset may also face a big dip.

Sky shareholders are close to maximum altitude

15 Dec 2016

Some of the pay-TV operator’s investors grumble that independent directors were too eager to accept an 11 bln pound bid from Rupert Murdoch’s Fox. But Sky’s share price wasn’t obviously beaten up, and the premium is generous. A small bump is the best they can hope for.

Redstones take media M&A to new channel

12 Dec 2016

Sumner and his daughter Shari have nixed their proposal to merge CBS and Viacom. The Murdochs' bid for Sky and AT&T's deal for Time Warner have ignited the industry's animal spirits. That has raised the prospect that reuniting the two media firms would rob CBS of a better offer.

Murdoch’s Sky sequel shorter on political thrills

12 Dec 2016

Twenty-First Century Fox's 11 bln pound bid for the remaining 61 pct of Sky looks easier than its failed 2010 attempt. Media plurality is still an issue, but can be remedied. The deal will face political opposition, but the prospect of more post-Brexit investment should help.

The Murdochs’ new reach for Sky is well timed

9 Dec 2016

Twenty-First Century Fox has offered to buy the 61 pct of Sky it doesn't own at a 40 pct premium, valuing the European pay-TV group at 18.5 bln pounds. Given industry consolidation like AT&T's plan to buy Time Warner, Fox has a far better chance than in 2010 of doing the deal.