Walt Disney, has narrowed the field of bidders for its ABC Radio division. The move that should pave the way for a sale of the unit before the end of the year. Analysts have estimated the unit could be valued at between $2bn and $3bn.
There are apparently only three bidders left. They include Entercom Communications of Pennsylvania, Cumulus Radio of Georgia – which recently acquired a large portfolio of radio assets from Susquehanna Pfaltzgraff, a Pennsylvania-based conglomerate – and Kohlberg Kravis Roberts, the US private equity group that unexpectedly emerged as a player in the race in recent days.
Disney’s radio group includes 72 stations, with 44 in the top 25 markets. In 2004, Disney group reported an estimated $710m in revenue.
The company decided to consider a sale following the appointment of Bob Iger as the new chief executive, which prompted a review of all the media group’s assets – which include theme parks, animated film production, film studios and the ABC television group.
A sale of its radio unit would represent another step in the reshaping of the global media industry, which is haveing to cope with depressed stock prices and increased competition from telecommunications providers and technology providers. Media Conglomerates are getting the worse of it and breaking up seems the shortest route to boosting share prices. Time Warner should pay heed.
Wednesday, November 30, 2005
Wed - TDC to be finally sold - oh, please!
Nordic Telephone Company (NTC), a private equity consortium led by Apax, has finally announced an agreed cash bid for TDC, valuing the Danish telecoms group at $12bn.
TDC’s board said it would recommend the bid, but the agreement does not rule out the telecoms group’s freedom to consider an alternative offer.
Please God, let's hope this is the end of the saga and TDC can stop hogging the business press and get back to being the relatively uninteresting regional phone company that it is.
TDC’s board said it would recommend the bid, but the agreement does not rule out the telecoms group’s freedom to consider an alternative offer.
Please God, let's hope this is the end of the saga and TDC can stop hogging the business press and get back to being the relatively uninteresting regional phone company that it is.
Wed - Cingular and Orange announce global partnership
Cingular Wireless, the largest US mobile carrier, and Orange, the European wireless group, agreed to work together to provide consolidated mobile services to multinational companies with operations in both the US and Europe.
Companies with operations in the US, Britain, France, Netherlands, Belgium and Switzerland will be able to manage their wireless usage through a Web portal called WorldView Wireless Information Navigator – a service that Cingular inherited when it acquired AT&T Wireless earlier this year.
Companies will also be able to use minutes from their home country while roaming. It also looks like consolidated billing will be on the cards. Shame though that such mobile partnerships are still not attacking the core issue of how to get international roaming charges down. Now there's an opportunity!
Companies with operations in the US, Britain, France, Netherlands, Belgium and Switzerland will be able to manage their wireless usage through a Web portal called WorldView Wireless Information Navigator – a service that Cingular inherited when it acquired AT&T Wireless earlier this year.
Companies will also be able to use minutes from their home country while roaming. It also looks like consolidated billing will be on the cards. Shame though that such mobile partnerships are still not attacking the core issue of how to get international roaming charges down. Now there's an opportunity!
Tuesday, November 29, 2005
Tues - traditional retailers stage comeback online
For the last handful of years the likes of Amazon and Ebay have ruthlessly dominated online shopping in the US. Now it seems that the traditional retailers are staging a powerful comeback.
The number of online visitors to Wal-Mart, Target and Circuit City more than doubled on the Friday after Thanksgiving against last year. So, while Ebay's traffic slipped 8% to 9.4M and Amazon's grew 11% to 4.6M unique users, Walmart.com's soared 120% to 3.3M users, Target's increased 143% to 2.9M users, Best Buy increased 75% to 2.1M users and Circuit City's doubled to 1.7M users.
So, Ebay is still No1, Amazon is No2, Walmart.com No3 etc etc. And the value of online shopping for the beginning of the holiday season looks good with Visa US stating that spending on its cards on online purchases increased 32% to %544M on Friday and Saturday.
So, it looks like the "brick and mortar" retailers are finally learning how to compete against the pure play etailers, by combining physical stores with online efforts. Expect this trend to continue.
The number of online visitors to Wal-Mart, Target and Circuit City more than doubled on the Friday after Thanksgiving against last year. So, while Ebay's traffic slipped 8% to 9.4M and Amazon's grew 11% to 4.6M unique users, Walmart.com's soared 120% to 3.3M users, Target's increased 143% to 2.9M users, Best Buy increased 75% to 2.1M users and Circuit City's doubled to 1.7M users.
So, Ebay is still No1, Amazon is No2, Walmart.com No3 etc etc. And the value of online shopping for the beginning of the holiday season looks good with Visa US stating that spending on its cards on online purchases increased 32% to %544M on Friday and Saturday.
So, it looks like the "brick and mortar" retailers are finally learning how to compete against the pure play etailers, by combining physical stores with online efforts. Expect this trend to continue.
Tues - TDC finally gets bought?
It looks like one of the longer running and more tedious take-overs is about to get concluded. TDC, the somewhat uninteresting Danish telecoms group, that has been hogging the business press for the last 6 months looks like it might finally get bought and can become uninteresting again.
And for all the press it looks as though the bidding war we all hoped for to end this episode on a at least a slightly exciting note will not happen after all. The lead bidder, a buy-out group led by Apax seems to be set to win because the other bidders are having trouble getting their bids in.Mmmm.
To be more specific, Swisscom has been stopped from bidding by the Swiss government who owns them and has decided in their infinite wisdom that international expansion does not make any sense. And the rival private equity group led by BC Partners is having trouble filing their bid in time.
So it looks like TDC will go to the Apax group for $11.5bn and at least go down in the books as one of the largest leveraged buy-outs. Unless of course BC Partners decide to inspire us all a little longer by trunping the bid, in which case it would be a larger leveraged buy-out. I'm all for Apax getting the deal mainly so TDC stops hogging the wires!
And for all the press it looks as though the bidding war we all hoped for to end this episode on a at least a slightly exciting note will not happen after all. The lead bidder, a buy-out group led by Apax seems to be set to win because the other bidders are having trouble getting their bids in.Mmmm.
To be more specific, Swisscom has been stopped from bidding by the Swiss government who owns them and has decided in their infinite wisdom that international expansion does not make any sense. And the rival private equity group led by BC Partners is having trouble filing their bid in time.
So it looks like TDC will go to the Apax group for $11.5bn and at least go down in the books as one of the largest leveraged buy-outs. Unless of course BC Partners decide to inspire us all a little longer by trunping the bid, in which case it would be a larger leveraged buy-out. I'm all for Apax getting the deal mainly so TDC stops hogging the wires!
Monday, November 28, 2005
Mon - "Click to Call" web adverts the next big thing
Google has now all but announced their "Click to Call" service which is presumably aimed at small businesses who do not have web sites. Now, you can place an ad on Google's sites that has a little picture of a telephone on it. The consumer clicks on the ad and is then prompted to enter their telephone number in a pop-up box. Once their telephone number is entered then Google automatically dial the number and connect the merchant with the consumer.
This could be big. It seems that the Kelsey Group believe that this infant market for "Click to Call" could be worth between $1.4 and $4bn by 2009. Mind you, they've given themselves such a wide margin for error that you've gotta monder how much finger in the air magic was involved. None the less, for those consumers who are OK with telesales calls to their home, this could be the way to go. I'm still a little confused about who pays for the call, but there ya go.
And it seems as though "Click to Call" is catching on with Ebay, Yahoo and AOL all launching services. Theirs differ though in approach and seem a little less slick than Google's. So, "Click to Call", along with Google Base, could prove yet another major nail in the coffin for traditional press listings and yellow pages companies.
This could be big. It seems that the Kelsey Group believe that this infant market for "Click to Call" could be worth between $1.4 and $4bn by 2009. Mind you, they've given themselves such a wide margin for error that you've gotta monder how much finger in the air magic was involved. None the less, for those consumers who are OK with telesales calls to their home, this could be the way to go. I'm still a little confused about who pays for the call, but there ya go.
And it seems as though "Click to Call" is catching on with Ebay, Yahoo and AOL all launching services. Theirs differ though in approach and seem a little less slick than Google's. So, "Click to Call", along with Google Base, could prove yet another major nail in the coffin for traditional press listings and yellow pages companies.
Mon - Swiss government stops Swisscom from growing abroad
The Swiss government has just set of a major controversy both at home and abroad as they seek to scupper Swisscom's attempts at growing internationally by acquiring Eircom of Ireland and maybe even TDC, the Dutch operator.
So as the Swiss government reminds us all of just how important it is in this modern world to ensure that governments are kept as far away as possible form the running of their countries companies, I can't help feeling that they will not back down.
And like a Swiss army penknife going through soft swiss chocolate (ooh, its making me hungry), it looks like the government may end up having to sell off Swisscom to ensure they cannot interfere again. But, this may not happen soon enough to halt the scuppering of deals with Eircom and TDC or even the en masse resignation of the top team at Swisscom.
All this just so that the Swiss government don't lose the nice dividends they get from Swisscom every year. And who said the Swiss were diplomatic and balanced.
So as the Swiss government reminds us all of just how important it is in this modern world to ensure that governments are kept as far away as possible form the running of their countries companies, I can't help feeling that they will not back down.
And like a Swiss army penknife going through soft swiss chocolate (ooh, its making me hungry), it looks like the government may end up having to sell off Swisscom to ensure they cannot interfere again. But, this may not happen soon enough to halt the scuppering of deals with Eircom and TDC or even the en masse resignation of the top team at Swisscom.
All this just so that the Swiss government don't lose the nice dividends they get from Swisscom every year. And who said the Swiss were diplomatic and balanced.
Mon - 3 Italis set for IPO and acquisition
3 Italia, the third generation mobile phone company owned by Hutchison Whimpoa, said its IPO should take place in the first quarter of 2006. This could make it the first big IPO of the new year.
3 also announced that they are buying the Italian TV station Canale 7, proving that people other than Silvio Berlusconi can actually own TV stations in Italy. 3 stated that they'll set up a network to supply their 4.8M customers (haven't they done well) with pay-TV and interactive services to their 3rd generation mobile devices.
It seems that positioning themselves as a media company will make them worth more at the IPO than as a straight forward telco. I hope they're doing this for more than just their valuation as merging advanced mobile networks with media assets has to be the future. That's the real reason they can be worth more.
3 also announced that they are buying the Italian TV station Canale 7, proving that people other than Silvio Berlusconi can actually own TV stations in Italy. 3 stated that they'll set up a network to supply their 4.8M customers (haven't they done well) with pay-TV and interactive services to their 3rd generation mobile devices.
It seems that positioning themselves as a media company will make them worth more at the IPO than as a straight forward telco. I hope they're doing this for more than just their valuation as merging advanced mobile networks with media assets has to be the future. That's the real reason they can be worth more.
Friday, November 25, 2005
Fri - consumer electronics sales to be big this Xmas
It looks like consumer electronics sales are set to grow nicely this Xmas in the US in particular, according to the CEA. And digital music players are the number one choice.
The CEA’s annual Holiday Spending Survey tracks the consumer electronics devices consumers intend to give as gifts, as well as those they hope to receive. Digital music players topped both lists this year displacing the digital camera at the top of last year’s gift list and the plasma TV at the top of last year’s wish list. The survey showed consumer interest in buying a portable digital music player has risen eight percentage points from 2004, to 28 per cent.
It also seems that consumers are buying into convergence products such as mobile phones that are also camera's and/or music players. Notice that the Xbox isn't at the top of the list.
The CEA’s annual Holiday Spending Survey tracks the consumer electronics devices consumers intend to give as gifts, as well as those they hope to receive. Digital music players topped both lists this year displacing the digital camera at the top of last year’s gift list and the plasma TV at the top of last year’s wish list. The survey showed consumer interest in buying a portable digital music player has risen eight percentage points from 2004, to 28 per cent.
It also seems that consumers are buying into convergence products such as mobile phones that are also camera's and/or music players. Notice that the Xbox isn't at the top of the list.
Fri - Ecclestone sells Formula 1 again
Bernie Ecclestone, founder and head of Formula 1 has sold the company to Cinven Capital Partners. This is now the second time he has sold Formula 1.
He will remain in charge of the business that turns over more than $1bn by managing and selling the rights to the Formula 1 car racing franchise.
He will remain in charge of the business that turns over more than $1bn by managing and selling the rights to the Formula 1 car racing franchise.
Fri - Murdoch on future of traditional classified ads
Rupert Murdoch, Chairman of News Corp, continues his drubbing of traditional print media in favour of digital advertising by stating yesterday that he believes that classified ads in print newspapers will migrate to the internet.
He partly believes that its an age issue as under 30's just don't seem to be interested at all in classifieds on print. They want online ads.
Well Murdoch certainly isn't wrong. I just wonder whether even he is underestimating the speed at which advertising of all sorts, not just classifieds, will shift to the internet and soon to mobile phones.
And the internet advertising market keeps moving forwards and innovating. The next big thing that Google has started offering is click-to-call wherebye you click on an online ad and it enables the advertiser to call you. This could be powerful. And Ebay has bet on it big time with their acquisition of Skype.
He partly believes that its an age issue as under 30's just don't seem to be interested at all in classifieds on print. They want online ads.
Well Murdoch certainly isn't wrong. I just wonder whether even he is underestimating the speed at which advertising of all sorts, not just classifieds, will shift to the internet and soon to mobile phones.
And the internet advertising market keeps moving forwards and innovating. The next big thing that Google has started offering is click-to-call wherebye you click on an online ad and it enables the advertiser to call you. This could be powerful. And Ebay has bet on it big time with their acquisition of Skype.
Thursday, November 24, 2005
Thurs - RIM reduces outlook for new subscribers
RIM announced yesterday that it would have to reduce its outlook for new subscribers because of delays in shipping 2 new devices, the new BlackBerry 8700 and 7130. This sent their share price down.
RIM seems to be stumbling this year. As well as being challenged on meeting their aggressive growth numbers, they also face a potentially expensive patent dispute that just won't go away.
It does though look to me that even though in the short term Blackberry continues to do ok, they have just surpassed 4M users, they are perhaps starting to feel the pressures of an increasingly competitive market. After all, with 3G technology becoming increasingly pervasive and Wi-Fi hotspots popping up everywhere, they will get increasingly squeezed by mobile phone companies on one side and wireless laptops on the other.
And with competition from the likes of Nokia, Microsoft, Motorola and a potentially stronger Palm, I think that Blackberry's glory days may be waning. As mobile phones get better and better at doing wireless email, can Blackberry really survive the onslaught from the all powerful handset manufacturers? I'm not so sure. But then, that's just me.
RIM seems to be stumbling this year. As well as being challenged on meeting their aggressive growth numbers, they also face a potentially expensive patent dispute that just won't go away.
It does though look to me that even though in the short term Blackberry continues to do ok, they have just surpassed 4M users, they are perhaps starting to feel the pressures of an increasingly competitive market. After all, with 3G technology becoming increasingly pervasive and Wi-Fi hotspots popping up everywhere, they will get increasingly squeezed by mobile phone companies on one side and wireless laptops on the other.
And with competition from the likes of Nokia, Microsoft, Motorola and a potentially stronger Palm, I think that Blackberry's glory days may be waning. As mobile phones get better and better at doing wireless email, can Blackberry really survive the onslaught from the all powerful handset manufacturers? I'm not so sure. But then, that's just me.
Wednesday, November 23, 2005
Wed - Hollywood does a deal to halt web piracy
The US movie industry won an important breakthrough in its fight against online piracy yesterday as it struck a deal with BitTorrent, the creator of a technology that is widely used for copying movies and TV shows illegally over the internet.
By creating a quicker way to download data-intensive video files, BitTorrent's technology has become the basis for the first widespread internet distribution of movies and TV shows. Wisely, the Motion Picture Association of America has agreed to help BitTorrent turn their technology into one which focuses on enabling the legal distribution of movies and TV.
Under the agreement, the search engine at BitTorrent.com will remove links to any pirated material. The agreement could also lead to the eventual adoption of BitTorrent's technology by the studios. It does at least seem as though the movie industry is learning from the painful lessons of the music industry, who failed for so long to curb web piracy.
It will also be interesting to see if BitTorrent can make it to become a legal service - after all, all attempts in the music industry failed. But, hey, BitTorrent also announced raising a bunch of money with a VC. Oh, that should do it!!
By creating a quicker way to download data-intensive video files, BitTorrent's technology has become the basis for the first widespread internet distribution of movies and TV shows. Wisely, the Motion Picture Association of America has agreed to help BitTorrent turn their technology into one which focuses on enabling the legal distribution of movies and TV.
Under the agreement, the search engine at BitTorrent.com will remove links to any pirated material. The agreement could also lead to the eventual adoption of BitTorrent's technology by the studios. It does at least seem as though the movie industry is learning from the painful lessons of the music industry, who failed for so long to curb web piracy.
It will also be interesting to see if BitTorrent can make it to become a legal service - after all, all attempts in the music industry failed. But, hey, BitTorrent also announced raising a bunch of money with a VC. Oh, that should do it!!
Wed - Greg Maffei makes his first move as head of Liberty Media
Greg Maffei, ex CFO of both Oracle and Microsoft, has made his first move as CEO of Liberty Media. He and John Malone (Chairman) have made their first foray into the increasingly lucrative market for online games by buying a 51% stake in Fun Technologies for $195M.
Fun, which is listed in Toronto and London, specialise in online versions of skill games such as solitaire, chess and Sudoku. It seems that online skill games are growing as fast as online gambling with players rising at an astonishing rate of 30% per quarter.
Expect this to be the first of a few acquisitions by Liberty Media in the growing online games market. My guess is that Greg Maffei and John Malone will prove to be a compelling and successful team together. Liberty Media should have an exciting future.
Fun, which is listed in Toronto and London, specialise in online versions of skill games such as solitaire, chess and Sudoku. It seems that online skill games are growing as fast as online gambling with players rising at an astonishing rate of 30% per quarter.
Expect this to be the first of a few acquisitions by Liberty Media in the growing online games market. My guess is that Greg Maffei and John Malone will prove to be a compelling and successful team together. Liberty Media should have an exciting future.
Wed - Sony Ericsson moves up in world rankings
Sony Ericcson has pushed LG Electronics out of the number four position in global mobile handset sales in the 3rd quarter thanks to strong demand for its Walkman phone.
The other interesting fact now is that Nokia and Motorola have further cemented their positions as number 1 and 2 respectively. Both of them saw market share gains and are pulling further ahead of the pack and ahead of Samsung in particular in 3rd slot.
As the mobile phone industry gets bigger and bigger, the rules of scale are applying, with the number 1 and number 2 seeing the greatest profits and as a result the greatest returns, which they can then invest in further market share gains. Expect it to continue.
The other interesting fact now is that Nokia and Motorola have further cemented their positions as number 1 and 2 respectively. Both of them saw market share gains and are pulling further ahead of the pack and ahead of Samsung in particular in 3rd slot.
As the mobile phone industry gets bigger and bigger, the rules of scale are applying, with the number 1 and number 2 seeing the greatest profits and as a result the greatest returns, which they can then invest in further market share gains. Expect it to continue.
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