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Showing posts with label News Corp. Show all posts
Showing posts with label News Corp. Show all posts
Wednesday, October 31, 2012
Investopedia: Disney Buys Lucasfilm, But Is it A Trap?
For many Star Wars fans, the news that came out Tuesday evening read
more like something from The Onion or a Halloween prank. The American
media megalith Disney (NYSE:DIS) announced that, not only did it reach an agreement to acquire
Lucasfilm from George Lucas for about $4.1 billion, but that a new Star
Wars movie would be in theaters by 2015, with many more following
thereafter. While this deal looks a little riskier than those for Pixar
and Marvel, Disney has a habit of monetizing media franchises more
successfully than analysts usually predict.
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Thursday, August 9, 2012
Investopedia: Another "Good Enough" Quarter For Disney
Media giant Disney (NYSE:DIS)
did not have a perfect quarter, but it was good enough to get the job
done. Media results were a little noisy, but solid revenue growth in
parks and resorts coupled with good profitability in the studio made for
a good bottom line result. As is often the case, Disney's stock is not
especially cheap, but investors have long been willing to pay up for
Disney's dominance and perceived full-cycle consistency.
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Friday, March 16, 2012
FinancialEdge: Department Of Justice Bites At Apple
Price fixing allegations aren't anything new; investors can usually count on seeing a few threats lobbed at this or that industry every year. What's unusual in this case is that a form of digital media, often seen as the dragon slayer of entrenched controlled prices, is in the center of the fight. What's even more unusual is that Apple, a company often credited for spot-on sense of its customers' sentiments, is involved as well.
A Warning Shot from the DOJ
The U.S. Department of Justice has recently warned Apple, as well as five traditional large publishing houses, that it intends to pursue a suit alleging antitrust/price-fixing behavior in the e-book market.
What this case ultimately boils down to is the allegation that these companies have essentially forced Amazon and other retailers to raise their prices on e-books. While Amazon has generally preferred to use a wholesale pricing model (where it decides the final price and the margin it wants), publishers have forced the company in many cases to adopt an agency model - a model where the publishers set the price and give a fixed percentage over to the retailer.
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http://www.investopedia.com/financial-edge/0312/Department-Of-Justice-Bites-At-Apple.aspx#axzz1pHlBxzxA
A Warning Shot from the DOJ
The U.S. Department of Justice has recently warned Apple, as well as five traditional large publishing houses, that it intends to pursue a suit alleging antitrust/price-fixing behavior in the e-book market.
What this case ultimately boils down to is the allegation that these companies have essentially forced Amazon and other retailers to raise their prices on e-books. While Amazon has generally preferred to use a wholesale pricing model (where it decides the final price and the margin it wants), publishers have forced the company in many cases to adopt an agency model - a model where the publishers set the price and give a fixed percentage over to the retailer.
Please click here for more:
http://www.investopedia.com/financial-edge/0312/Department-Of-Justice-Bites-At-Apple.aspx#axzz1pHlBxzxA
Wednesday, September 21, 2011
Investopedia: More Data, More Profits for FactSet
Individual investors may hear the occasionally quip about "paralysis by analysis," but the fact remains that institutional investors (on the whole) love their data. Feeding this endless appetite has been a boon for companies like IBM (NYSE:IBM), EMC (NYSE:EMC) and Bloomberg, as well as smaller players like FactSet (NYSE:FDS), and it does not look like the data deluge is in any danger of drying up soon.
A Solid End to the Fiscal Year, or Is It?
FactSet closed out its fiscal year with a solid financial report relative to Wall Street expectations, but careful examination is a little more concerning. Revenue rose 14% this quarter, with 15% growth in the U.S. helping to offset 12% growth in foreign revenue. While FactSet did do a solid job of adding new clients (and getting more paying seats at existing clients), the company is not doing quite as well in terms of wringing more revenue out of each client - client count increased 6% this quarter versus last year, while the number of users increased 12%. In terms of revenue per customer, then, the company saw very modest growth of just 1.5% (to about $3,990 per customer) while revenue per client rose a bit less than 8% to just under $86,000.
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A Solid End to the Fiscal Year, or Is It?
FactSet closed out its fiscal year with a solid financial report relative to Wall Street expectations, but careful examination is a little more concerning. Revenue rose 14% this quarter, with 15% growth in the U.S. helping to offset 12% growth in foreign revenue. While FactSet did do a solid job of adding new clients (and getting more paying seats at existing clients), the company is not doing quite as well in terms of wringing more revenue out of each client - client count increased 6% this quarter versus last year, while the number of users increased 12%. In terms of revenue per customer, then, the company saw very modest growth of just 1.5% (to about $3,990 per customer) while revenue per client rose a bit less than 8% to just under $86,000.
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Wednesday, September 7, 2011
Investopedia: Can There Be Another Disney?
There is an idea out there that the increasing "democratization" of content and distribution will mean that the age-old balance between artists and creative types and their corporate masters has changed forevermore. If that is true, investors should consider the possibility that there may never be another company quite like Disney (NYSE:DIS) with its ability to create enduring global and iconic brands.
Has Distribution Changed the Game?
There was a time that if someone wanted to be an actor, they had to accept and work within the "studio system." Major studios like Fox Film, Warner Brothers and Paramount signed up all of what they saw as the talented actors, directors and crew to long-term exclusive deals, and they likewise controlled the production studios, distribution networks, and in many cases the theater chains as well. To be in movies outside of the major studios meant being in low-budget "B movies" and perhaps never having people see your work. (For related reading, see Why Movies Cost So Much To Make.)
Much the same was true for artists in other media. While there were quite a lot of small publishing houses, authors who wanted to make a living had to work through established publishers like Scribner's or magazine publishers like Amazing Stories and Weird Tales - and these publishing outlets were increasingly acquired and consolidated through the 60s, 70s, and 80s. When it came to media like cartoons or comics, there was likewise a limited number of venues - if you couldn't get a job with Warner Brothers, Hanna-Barbera, or Marvel, you were likely limited to self-publishing and had to hustle hard to get anyone to notice your work.
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Has Distribution Changed the Game?
There was a time that if someone wanted to be an actor, they had to accept and work within the "studio system." Major studios like Fox Film, Warner Brothers and Paramount signed up all of what they saw as the talented actors, directors and crew to long-term exclusive deals, and they likewise controlled the production studios, distribution networks, and in many cases the theater chains as well. To be in movies outside of the major studios meant being in low-budget "B movies" and perhaps never having people see your work. (For related reading, see Why Movies Cost So Much To Make.)
Much the same was true for artists in other media. While there were quite a lot of small publishing houses, authors who wanted to make a living had to work through established publishers like Scribner's or magazine publishers like Amazing Stories and Weird Tales - and these publishing outlets were increasingly acquired and consolidated through the 60s, 70s, and 80s. When it came to media like cartoons or comics, there was likewise a limited number of venues - if you couldn't get a job with Warner Brothers, Hanna-Barbera, or Marvel, you were likely limited to self-publishing and had to hustle hard to get anyone to notice your work.
Read more at Investopedia:
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Monday, September 5, 2011
FinancialEdge: 7 Companies Facing Retiring CEOs
Change is an inevitable part of life, but it can be particularly disruptive when it comes to company leadership. With a new CEO comes a new set of priorities, a new way of doing things and a new perspective on what the company needs to do to remain competitive in its industry. Not all CEO transitions are traumatic or even transformative, but there is always that risk. While investors have had reason to expect a change in the CEO office at Apple (Nasdaq:AAPL) for some time, these other companies are likely to face transitions of their own in the not-so-distant future.
1. Berkshire Hathaway
It is difficult to find a more obvious example of a company that is not only facing the likelihood of a near-term CEO change, but also one that will fundamentally impact how the business operates. The current CEO and chairman, Warren Buffett, has shifted his position on succession a few times over the years, and currently it is expected that the investment functions that garner so much attention will likely be split among multiple people. Though Berkshire has an excellent roster of operating units, a change in leadership here is going to significantly alter how business is done. At present, Berkshire Hathaway can do things quickly and effectively in large part because Warren Buffett is Warren Buffett - and a handshake deal with him goes a long way with most people.
Read the full column at the link below:
http://financialedge.investopedia.com/financial-edge/0911/7-Companies-Facing-Retiring-CEOs.aspx#axzz1X2whDx73
1. Berkshire Hathaway
It is difficult to find a more obvious example of a company that is not only facing the likelihood of a near-term CEO change, but also one that will fundamentally impact how the business operates. The current CEO and chairman, Warren Buffett, has shifted his position on succession a few times over the years, and currently it is expected that the investment functions that garner so much attention will likely be split among multiple people. Though Berkshire has an excellent roster of operating units, a change in leadership here is going to significantly alter how business is done. At present, Berkshire Hathaway can do things quickly and effectively in large part because Warren Buffett is Warren Buffett - and a handshake deal with him goes a long way with most people.
Read the full column at the link below:
http://financialedge.investopedia.com/financial-edge/0911/7-Companies-Facing-Retiring-CEOs.aspx#axzz1X2whDx73
Wednesday, August 3, 2011
Investopedia: Investors Shouldn't Tune Out Central European Media Media
Want to invest in the growth of central and eastern Europe (CEE)? Good luck. There are a couple of ADRs that trade on occasion, but otherwise investors who can't invest directly in these foreign markets are left with ETFs, mutual funds, and a handful of listed plays like Central European Distribution (Nasdaq:CEDC) and CTC Media (Nasdaq:CTCM).
Scarcity doesn't automatically make a stock a good value, but with leading positions in several CEE broadcast markets, investors ought to consider Central European Media (Nasdaq:CETV). While ad spending remains challenging and cost inflation is an ongoing risk, the worst seems to be over for this often overlooked company. (For more on inflation, see The Importance Of Inflation And GDP.)
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Scarcity doesn't automatically make a stock a good value, but with leading positions in several CEE broadcast markets, investors ought to consider Central European Media (Nasdaq:CETV). While ad spending remains challenging and cost inflation is an ongoing risk, the worst seems to be over for this often overlooked company. (For more on inflation, see The Importance Of Inflation And GDP.)
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Tuesday, July 19, 2011
Investopedia: Gannett Looks To Be A Survivor
The "newspapers are doomed" theme has been making its rounds for over a decade now, buoyed in large part by the fact that it's basically true. For the most part, the days of the locally-owned and operated daily newspaper are long gone, or at least gone insofar as a growth story. But that doesn't automatically mean that large media companies like Gannett (NYSE:GCI), New York Times (NYSE:NYT) and McClatchy (NYSE:MNI) are doomed. The question, though, is whether there's any clear way for these companies to unlock whatever value remains of their businesses.
Another Gloomy Quarterly Report
Gannett did not post disappointing numbers for the second quarter relative to expectations, and that may be the best that can be said about it. Revenue was down a bit more than 2%, led by the ongoing erosion of the publishing business. Publishing revenues were down almost 5% on a greater than 6% drop in ad revenues. Broadcasting was ever so slightly positive and though digital revenue was up more than 12%, it still comprises just about 13% of total revenue.
The full article can be found at this link:
http://stocks.investopedia.
Another Gloomy Quarterly Report
Gannett did not post disappointing numbers for the second quarter relative to expectations, and that may be the best that can be said about it. Revenue was down a bit more than 2%, led by the ongoing erosion of the publishing business. Publishing revenues were down almost 5% on a greater than 6% drop in ad revenues. Broadcasting was ever so slightly positive and though digital revenue was up more than 12%, it still comprises just about 13% of total revenue.
The full article can be found at this link:
http://stocks.investopedia.
Monday, July 18, 2011
Investopedia: Corruption And Scandal Don't Make News Corp A Bargain
One of the golden rules of dealing with the media is to "control the message". Given the increasing furor over the conduct of News Corp (NYSE:NWS) in a phone-hacking scandal in the U.K. and the calls for the company to be prosecuted (or at least investigated) under the Foreign Corrupt Practices Act, News Corp is clearly failing in that regard. While some investors may be attracted to the stock given its declines in the wake of the scandal and the theory that it is too big to fail, caution may be the better part of valor today. (For a couple of strategies to over come this scandal, read Crisis Management Strategies For Business Owners.)
An Ugly Action Kills a Paper
Even by the iffy standards of British tabloid journalism, News Corp's News of the World always walked a gray line when it came to scandal and controversy. Going a step way too far, though, several of the paper's employees have been accused of hacking into private citizen's phones and intercepting voice mails, including those of the families of dead soldiers and those who lost family members in the 2005 terrorist bombings.
The full story can be found at Investopedia:
http://stocks.investopedia.
An Ugly Action Kills a Paper
Even by the iffy standards of British tabloid journalism, News Corp's News of the World always walked a gray line when it came to scandal and controversy. Going a step way too far, though, several of the paper's employees have been accused of hacking into private citizen's phones and intercepting voice mails, including those of the families of dead soldiers and those who lost family members in the 2005 terrorist bombings.
The full story can be found at Investopedia:
http://stocks.investopedia.
Wednesday, November 24, 2010
Netflix Moves The Goalposts ... Again
It is hard not to love a company that sees the biggest threat(s) to its business model, and then embraces them. By no means did Netflix (Nasdaq:NFLX) invent the notion of streaming movies and TV to consumers, but it looks as though this company is fully embracing the idea and taking a forceful step towards not only be relevant, but continuing to be a leader in its market.
Here We Go Again
The idea of Netflix doing something new in terms of delivering entertainment to customers is nothing new. It is an unofficial rule of business and investment writing that every mention of Netflix longer than two paragraphs includes mention of the fact that the company's direct-to-consumer mail DVD rental business basically killed Blockbuster and Movie Gallery. Now, with Coinstar's (Nasdaq:CSTR) Red Box kiosks offering legitimate competition for physical DVDs and Hulu an emerging player in online and streaming content, Netflix is more fully embracing streaming content.
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Here We Go Again
The idea of Netflix doing something new in terms of delivering entertainment to customers is nothing new. It is an unofficial rule of business and investment writing that every mention of Netflix longer than two paragraphs includes mention of the fact that the company's direct-to-consumer mail DVD rental business basically killed Blockbuster and Movie Gallery. Now, with Coinstar's (Nasdaq:CSTR) Red Box kiosks offering legitimate competition for physical DVDs and Hulu an emerging player in online and streaming content, Netflix is more fully embracing streaming content.
Please click the link for the full piece:
http://stocks.investopedia.
Sunday, November 14, 2010
Looking Glass Reveals Better Results At Disney
Give Disney (NYSE: DIS) credit. One way or another, the company will get eyeballs on its content. In addition to owning one of the four major broadcast networks (ABC) and the preeminent sports network (ESPN), the media and entertainment giant operates other cable channels, runs a host of resorts and parks, and constantly pushes new content out through movies and products. In other words, unless somebody lives in North Korea or a mineshaft, they will see Disney and probably see it often. (For more, see Walt Disney's Valuable Content.)
A Goofy Quarter
Disney may be ubiquitous, but that does not mean that growth comes easy. Revenue was down 1% in the company's fiscal fourth quarter. Reported network revenue was down 7%, and park/resort revenue was down 1%, while entertainment and products were up 6% and 13%, respectively. To give Disney a bit more credit, though, it is important to remember that results can be lumpy - overall second-half revenue was up a more encouraging 7%.
What made this quarter "goofy" was a host of charges and adjustments; normal in the course of business for a company like Disney (where writing down the value of content is a cost of doing business), but nevertheless confusing to some investors who do not live and breathe accounting arcana. To that end, adjusted segment operating income was up 1%, with the network and park/resort business lagging and entertainment and products doing well.
For the full article, please go to:
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A Goofy Quarter
Disney may be ubiquitous, but that does not mean that growth comes easy. Revenue was down 1% in the company's fiscal fourth quarter. Reported network revenue was down 7%, and park/resort revenue was down 1%, while entertainment and products were up 6% and 13%, respectively. To give Disney a bit more credit, though, it is important to remember that results can be lumpy - overall second-half revenue was up a more encouraging 7%.
What made this quarter "goofy" was a host of charges and adjustments; normal in the course of business for a company like Disney (where writing down the value of content is a cost of doing business), but nevertheless confusing to some investors who do not live and breathe accounting arcana. To that end, adjusted segment operating income was up 1%, with the network and park/resort business lagging and entertainment and products doing well.
For the full article, please go to:
http://stocks.investopedia.
Wednesday, June 2, 2010
A New Dawn For Old Media?
The publishing world seems to be putting on an impromptu rendition of "Monty Python and the Holy Grail." First we had the scene with the Black Knight where the internet began dismembering old media and old media bravely told us "'tis but a scratch," as gouts of blood spurted out of the cash flow statement. Now, though, we may be to the scene with Eric Idle and John Young, in which Mr. Young bravely declares "I'm not dead yet!"
What's Old is New AgainIronically, it may be new media and technology that ultimately saves the day for old media. As consumers continue to buy up the Kindle from Amazon (Nasdaq:AMZN) and competing devices like Barnes & Noble's (NYSE:BKS) Nook, Sony's (NYSE:SNE) Reader, and Apple's (Nasdaq:AAPL) iPad, it looks like publishers may have finally accepted the reality that their future is digital.
For the full article, please go to:
http://stocks.investopedia.
What's Old is New AgainIronically, it may be new media and technology that ultimately saves the day for old media. As consumers continue to buy up the Kindle from Amazon (Nasdaq:AMZN) and competing devices like Barnes & Noble's (NYSE:BKS) Nook, Sony's (NYSE:SNE) Reader, and Apple's (Nasdaq:AAPL) iPad, it looks like publishers may have finally accepted the reality that their future is digital.
For the full article, please go to:
http://stocks.investopedia.
Thursday, May 13, 2010
An Increasingly Small World For Disney
Sometimes, conventional wisdom is not so wise. Take the case of media giant Disney (NYSE:DIS) - the conventional wisdom is that the popularity and ubiquity of its brands (and its eternal appeal to kids) insulates it from economic conditions. That so-called wisdom bypasses the reality that it takes money to go to theme parks, advertising on networks trails off in recessions and movie production requires large upfront investments for uncertain returns.
Diversification Shows its AdvantagesThat said, Disney's diversified asset base has helped the company weather the downturn in relatively good order, and this quarter was another example. Revenue rose about 6% overall as strength in the cable and film business offset pretty iffy results in broadcast TV and theme parks. Margins likewise have stayed strong, even as the company lays out significant money for programming rights for ESPN. One note of caution on the margins, though. Successful movies like Alice in Wonderland can certainly boost profitability, but seemingly every studio has a dry spell from time to time and they are inherently impossible to predict (few studio execs would green-light a movie they know is doomed to fail).
http://stocks.investopedia.com/stock-analysis/2010/An-Increasingly-Small-World-for-Disney-DIS-CMCSA-GE-CBS-NWS-FUN-VIVDY0513.aspx
Diversification Shows its AdvantagesThat said, Disney's diversified asset base has helped the company weather the downturn in relatively good order, and this quarter was another example. Revenue rose about 6% overall as strength in the cable and film business offset pretty iffy results in broadcast TV and theme parks. Margins likewise have stayed strong, even as the company lays out significant money for programming rights for ESPN. One note of caution on the margins, though. Successful movies like Alice in Wonderland can certainly boost profitability, but seemingly every studio has a dry spell from time to time and they are inherently impossible to predict (few studio execs would green-light a movie they know is doomed to fail).
http://stocks.investopedia.com/stock-analysis/2010/An-Increasingly-Small-World-for-Disney-DIS-CMCSA-GE-CBS-NWS-FUN-VIVDY0513.aspx
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