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Tag: Comcast

  • Comcast, Time-Warner Cable quash $45 billion merger deal

    Comcast, Time-Warner Cable quash $45 billion merger deal

    BENGALURU: Comcast Corporation’s merger agreement with Time Warner Cable and its transactions agreement with Charter Communications, Inc have been terminated on the back of increasing pressure from regulators. The Time Warner Cable deal was worth $ 45.2 billion.

     

    Comcast chairman and CEO Brian L. Roberts said, “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away. Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts. I couldn’t be more proud of this company and I am truly excited for what’s next.”

     

    Comcast and Charter Communications had announced in April 2014 that the companies had reached an agreement on a series of tax-efficient transactions, whereby the combined Comcast-Time Warner Cable entity, following completion of Comcast’s previously announced merger with Time Warner Cable, would divest systems resulting in a net reduction of approximately 3.9 million video customers. The divestiture was to follow through on Comcast’s willingness to reduce its post-merger managed subscriber total to less than 30 per cent of total nationalmultichannel video programming distributor (MVPD) subscribers, while maintaining the compelling strategic and financial rationale of its proposed merger with Time Warner Cable. With the merger between the two companies called off, the Charter Communications deal is also off.

     

    Time Warner Cable and Comcast Corporation mutually agreed to terminate their merger agreement. 

     

    In an official statement, Time Warner Cable chairman and CEO Robert D. Marcus said, “We have always believed that Time Warner Cable is a one-of-a-kind asset. We are strong and getting stronger. Throughout this process, we’ve been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers. Through our strong operational execution and smart capital allocation, we are confident we will continue to create significant value for shareholders. I’m extremely proud of the professionalism, dedication and resiliency our 55,000 employees have shown over the past year and thank them for their continued commitment to Time Warner Cable.”

  • Comcast names Jeff Buzzelli as SVP of Comcast Business – Central Division

    Comcast names Jeff Buzzelli as SVP of Comcast Business – Central Division

    MUMBAI: Comcast has appointed Jeff Buzzelli as senior vice president of Comcast Business for the company’s Central Division, headquartered in Atlanta.

     

    In this role, Buzzelli will be directly responsible for developing, facilitating and implementing strategies aimed at growing Comcast Business across 17 states from Michigan to Florida. 

     

    As a seasoned executive with two decades of experience in the telecommunications industry, Buzzelli was most recently senior vice president of Comcast Business for the company’s Northeast Division, where he led a team that delivered revenue growth of more than 25 per cent the past three years and led to growth of 500,000+ data customers.

     

    Prior to that, Buzzelli spent four years as vice president of Business Services for Comcast’s Greater Chicago Region, where he nearly tripled revenue while also expanding the company’s mid-market and enterprise presence. While there, he led the acquisition and integration of CIMCO Communications into the Chicago market, allowing the company to grow and compete more effectively. Buzzelli was twice recognized with the company’s prestigious President’s Club Award, and he and his team played an integral role in helping the Greater Chicago Region achieve “System of the Year” status in the company’s internal recognition program.

     

    “I am thrilled to have Jeff back in Central Division, and I know our customers will be, too. He’s a proven leader and a motivator and someone ideally suited to take an already successful organization to the next level and deliver truly outstanding results for our customers,” said Comcast’s Central Division president Bill Connors.

     

    Prior to his work at Comcast, Buzzelli held key leadership positions within sales, marketing and operations at AT&T, GTE/Verizon and Level 3 Communications and, before that, led several leading national and regional organizations focused on serving commercial customers. 

     

    “I’m very excited about this new role and look forward to helping clients across Comcast’s Central Division find the right technology solutions to achieve their business goals. Our success as a company depends on them, and we are committed to providing every customer with the very best products and services coupled with personalized, dedicated support when they need it,” added Buzzelli.

  • Censor Board bans ‘Fifty Shades of Grey’ in India

    Censor Board bans ‘Fifty Shades of Grey’ in India

    MUMBAI: It finally official. Fifty Shades of Grey will not see an India release. According to media reports, the Central Board of Film Certification (CBFC) has said that they will not allow the film to be shown in cinemas as fans had eagerly waited for the release of the film in India.

     

    Fifty Shades of Grey was first screened at the 65th Berlin International Film Festival on 11 February, 2015. The film was released in 75 IMAX screens across the US on 13 February, 2015.

     

    Central Board of Film Certification Shravan Kumar did not mention the reasons for which the panel refused to approve the film adaptation. He though went on to add that the Comcast Corp unit that released the Universal Pictures film could appeal the decision. 

     

    Sources said that the board had objected to the film’s dialogue, even after Universal had made voluntary edits to the film to bring down its raunchy sex scenes and removed some forms of nudity.

     

    The film so far has grossed more than $400 million in global ticket sales. However, countries like Malaysia, Indonesia and Kenya have banned the film in their theaters for its sexual content.

  • WGA & Congressman Cardenas oppose Comcast-Time Warner Cable merger

    WGA & Congressman Cardenas oppose Comcast-Time Warner Cable merger

    MUMBAI: Congressman Tony Cardenas (CA-29) added his voice to the growing list of public officials, consumer groups and businesses that are opposed to allowing Comcast’s acquisition of Time Warner Cable. During a briefing held at the headquarters of the Writers Guild of America, West (WGAW) and attended by representatives of legislative offices from across the L.A. region, Cardenas officially stated his opposition to the deal.

     

    “Today I announce my strong opposition to the Comcast-Time Warner Cable merger. I ask the FCC, the DOJ, and the California Public Utilities Commission to deny this merger because it is bad for consumers, will harm competition, will lead to less diverse content, more expensive cable and internet access, and will eliminate good jobs in California. If approved, the Comcast-Time Warner Cable merger will drastically change the landscape for media and broadband internet service in America. The pending merger between Comcast and Time Warner Cable will enable an increased market dominance that will have a particularly negative impact on diversity of content and minority communities,” said Cardenas.

     

    “Mergers that increase the power of content gatekeepers do not serve the interests of consumers or creators. Comcast has already stated that if the merger is allowed it will save money by paying less for content. This means that programmers will have less money to invest in content, which means less creativity, less innovation and less product. This could translate into fewer jobs, including right here in Los Angeles. While approval of this deal once seemed an inevitable outcome, the issues raised here today and over the last year make clear that the appropriate action for state and federal regulators is to say no to the merger,” added WGAW president Chris Keyser.

     

    Presentations given by the WGAW, The Greenlining Institute, Entravision Communications Corporation, Sports Fans Coalition, and Presente.org detailed the far-reaching effects the merger will have on consumers, independent programmers and content creators, diverse communities, sports fans, and businesses throughout the Southland. New research conducted by the WGAW concludes that should the merger take place, Comcast’s increased buyer power as a distributor of television and the Internet will lead to higher prices for consumers, fewer content choices and less diverse and innovative content. Virtually no one in the L.A. region will be left untouched by this mega-merger.

     

    L.A. Consumers are almost certain to face higher prices for cable and Internet service, more restrictions on how they can access the content they want and worse customer service. Local consumers will have little choice but to accept this new reality because for 72 per cent of Los Angeles County residents living in Comcast’s proposed footprint, Comcast will be the only choice for high-speed broadband.

     

    Latinos across the country and here in Los Angeles will be harmed if this merger is approved. Comcast’s acquisition of Time Warner Cable would allow it to reach more than 90 per cent of Latino households nationally and become the dominant pay TV provider in LA, the largest Latino media market. Comcast will have make or break power over programmers trying to reach this audience. In addition, the company’s higher prices will hit local Latino consumers even harder, because with a median income of $21,314, compared with $44,929 for Anglo-Americans, they make significantly less than their white counterparts.

     

    Moreover, 78 per cent of African American residents and 73 per cent of Asian residents living in Comcast’s proposed LA County footprint will have no other choice for broadband service that offers speeds of 25 Mbps or faster.

     

    Local sports fans can expect higher prices or less access to home team games if the merger is approved. Already, 70 per cent of Angelenos do not have access to the local Dodgers channel because of Time Warner Cable’s anticompetitive pricing policies. The problem will only get worse if Comcast takes over Time Warner Cable and Charter systems locally because the bigger the cable provider gets, the more it charges competitors for access.

    The Creative Community will see Comcast increase its ability to pay less for programming and strangle the growth of online video, threatening the new “golden age of programming” we are currently living in.

     

    Independent and Diverse Programmers will face a larger, vertically integrated distributor that controls 30 per cent of the pay TV market and 50 per cent of the high-speed broadband market, giving it tremendous bargaining power over programmers. For Latino-oriented independent programmers, the situation is even worse because Comcast owns several Spanish-language networks and has both the incentive and ability to limit content competition.

  • Q3-2014: Rating’s lower Comcast’s NBC Cable Networks Ad Rev; Cable Communications Ad Rev up

    Q3-2014: Rating’s lower Comcast’s NBC Cable Networks Ad Rev; Cable Communications Ad Rev up

    BENGALURU: A few days ago, Comcast Corporation (Comcast) reported a 4 per cent y-o-y growth in consolidated revenue (TR) in Q3-2014 to $ 16,791 million from US$ 16151 million in Q3-2013. However, q-o-q, the company’s revenue was almost flat with a fractional drop of 0.3 per cent from $ 16,844 million.

    As per the company’s press release, it receives advertisement revenue (Ad Rev) from two business streams:  Cable Communications and its subsidiary NBC Universal.

    Ad revenues from two segments that contribute to NBC Universal’s ad revenues include Cable Networks and Broadcast Television while NBC Universal’s other segments includes Filmed Entertainment and Theme Parks.

    Advertisement Revenue dropped in the earlier quarter Q2-2014 by 14.1 per cent as compared to Q1-2014 and it has dropped further q-o-q by 8.4 per cent in Q3-2014. Over the 11 quarter period (period under consideration) starting Q1-2012 (quarter ended 31 March, 2012) till Q3-2014 (quarter ended 30 September, 2014 or current quarter), the company’s Total advertisement revenue (Ad Rev) shows a downward linear trend in terms of percentage of TR.

    However during the period under consideration, the company’s Ad Rev in absolute dollar terms shows a slight upward trend, as do the Ad Rev from Comcast’s Cable Communication as well as NBC Universal business streams.

    For Q3-2014, as mentioned above, the company’s Ad Rev was down 8.4 per cent to $ 2,556 million (15.2 per cent of TR) from $ 2,789 million (16.6 per cent of TR) in Q2-2014, but was 3.1 per cent more than the $ 2,480 million (15.4 per cent of TR) in the corresponding year ago quarter.

    Over the 11 quarters under consideration, the company’s average Ad Rev in terms of percentage of Comcast TR has been reported at 17.3 per cent.  As mentioned above, the company’s Ad Rev in terms of percentage of TR was much lower during Q3-2014 at 15.2 per cent of TR and at 16.6 per cent of TR during Q2-2014.

    Also, for the period under consideration, the highest contribution by Ad Rev in terms of percentage of TR as well as absolute value in dollars was in Q3-12 at $ 3,403 million (20.6 per cent of TR), while the lowest figure for the same period was in Q1-2013 at 14.8 per cent of TR and $ 2,268 million. Please refer to figure 1 for details of Comcast’s Ad Rev during the eleven quarters under consideration.

    Cable Communications Ad Rev

    As shown in figure 1, Ad Rev from Cable Communications is at a lesser fraction of the company’s Total Ad Rev, averaging around 20.3 per cent of the company’s total Ad Rev during the period under consideration.  This trend however seems to be changing with Cable Communications Ad Rev increasing for the second quarter in a row. In Q3-2014, Ad Rev from Cable Communications was 1.3 per cent higher at $ 607 million (5.5 per cent of Cable Communications TR, 23.7 per cent of Comcast Ad Rev, 3.6 per cent of Comcast TR) than the $ 599 million in Q2-2014 (5.4 per cent of Cable Communications TR, 21.5 per cent of Comcast Ad Rev, 3.6 per cent of Comcast TR) and 12.2 per cent more than the $ 541million in Q3-2013 (5.2 per cent of Cable Communications TR, 21.8 per cent of Comcast Ad Rev, 3.3 per cent of Comcast TR).

    Impact of NBC Universal Ad Revenue on Comcast Revenue

    NBC Universal Ad Rev contributes around 80 per cent to Comcast’s Ad Rev. Obviously, a drop in Ad Rev by both or either of these NBC Universal’s segments will affect Comcast Ad Rev and Comcast TR.

    About 60 per cent of NBC Universal’s Ad Rev comes from Broadcast Television. Please refer to figure 2 below for the breakup of NBC Universal’s Ad Rev break-up. In Q3-2014, both of NBC Universal’s segments’ Ad Revs have de-grown. 

    NBC reported a fall of 11 per cent in Ad Rev in Q3-2014 to $ 1,949 million (32.9 per cent of NBC Universal TR, 76.3 per cent of Comcast Ad Rev, 11.6 per cent of Comcast TR) from $ 2,190 in Q2-2014 (36.4 per cent of NBC Universal TR, 78.5 per cent of Comcast Ad Rev, 13 per cent of Comcast TR), but was just 0.5 per cent more than $ 1,939 million in Q3-2013 (33.1 per cent of NBC Universal TR, 78.2 per cent of Comcast Ad Rev, 12 per cent of Comcast TR).

    Cable Networks, on the other hand reported a bigger drop of 15.8 per cent in their Ad Rev reported at $ 796 million (40.8 per cent of NBC Universal Ad Rev, 13.4 per cent of NBC Universal TR, 31.1 per cent of Comcast Ad Rev, 4.4 per cent of Comcast TR) from $ 945 million in Q2-2014 (43.2 per cent of NBC Universal Ad Rev, 15.7 per cent of NBC Universal TR, 33.9 per cent of Comcast Ad Rev and 5.6 per cent of Comcast TR), and 4.7 per cent less than the $ 835 million in Q3-2013 (43.1 per cent of NBC Universal Ad Rev, 14.3 per cent of NBC Universal TR, 33.7 per cent of Comcast Ad Rev and 5.2 per cent of Comcast TR). The company attributes lower Ad Rev from this segment to a drop in ratings.

    In Q3-2014, Broadcast TV Ad Rev fell 7.4 per cent in Q3-2014 to $ 1,153 million (59.2 per cent of NBC Universal Ad Rev, 19.5 per cent of NBC Universal TR, 45.1 per cent of Comcast Ad Rev and 6.9 per cent of Comcast TR) from $ 1,245 million in Q2-2014 (56.8 per cent of NBC Universal Ad Rev, 20.7 per cent of NBC Universal TR, 44.6 per cent of Comcast Ad Rev and 7.4 per cent of Comcast TR), but 4.4 per cent more than $ 1,104 million  in Q3-2013(59.2 per cent of NBC Universal Ad Rev, 19.5 per cent of NBC Universal TR, 45.1 per cent of Comcast Ad Rev and 6.9 per cent of Comcast TR).

  • Q3-2014: Comcast income up 50 per cent y-o-y; NBC Universal’s posts TV Broadcasting strong results

    Q3-2014: Comcast income up 50 per cent y-o-y; NBC Universal’s posts TV Broadcasting strong results

    BENGALURU:  Comcast Corporation (Comcast) reported a 4 per cent y-o-y growth in consolidated revenue (TR) in Q3-2014 to $ 16,791 million from $ 16,151 million in Q3-2013. However, q-o-q, the company’s revenue was almost flat with a fractional drop of 0.3 per cent from $ 16,844 million.

     

    Talking about the latest earnings, Comcast chairman and CEO Brian L Roberts said, “I am pleased to report strong revenue, operating cash flow and free cash flow growth for the third quarter of 2014. Cable results highlight the consistent strength of high-speed Internet and business services, and video customer results were the best for a third quarter in seven years. We continue to focus on innovation and providing the best experience for our customers, and we are thrilled with the response to our superior X1 platform, which recently reached five million boxes deployed. At NBC Universal, we had another outstanding quarter with double-digit operating cash flow growth, driven by ratings momentum at NBC Broadcast and the successful opening of The Wizarding World of Harry Potter-Diagon Alley in Orlando.”

     

    Comcast’s consolidated operating expenditure (Expenditure) in Q3-2014 at $ 11,087 million was 2.5 per cent more than the $ 10,821 million in Q3-2013 and 0.4 per cent more than the $ 11,040 million in Q2-2014.

     

    Comcast’s Earnings per Share (EPS) for the third quarter of 2014 was $ 0.99, a 52.3 per cent increase from the $ 0.65 reported in the third quarter of 2013. EPS for Q2-2014 was $ 0.76, (excluding gain on a sale and transaction-related costs, EPS in Q2-2014 was $0.75). Excluding income tax adjustments and transaction-related costs in Q3-2014, EPS increased 12.3 per cent to $ 0.73.

     

    The company’s net income after taxes, attributable to Comcast in Q3-2014 increased 49.7 per cent to $ 2,592 million from $ 1,732 million in Q3-2013. Net Income attributable to Comcast Corporation in Q2-2014 was $ 1,992 million.

     

    Comcast Business Streams

     

    Two main business streams contribute to Comcast: Cable Communications (between 60 and 65 per cent of TR) and NBC Universal (between 35 and 40 per cent of TR). 

     

    Video, high speed internet, voice, business services and other businesses are a part of Cable Communications. Cable Communications Video Revenue consists of analogue, digital, premium, pay-per-view, equipment services and residential video installation revenue. Other Cable Communications Revenue include franchise and other regulatory fees, digital media centre, commissions from electronic retailing networks and fees for other services.

     

    NBC Universal comprises of Cable Networks, Broadcast Television, Filmed Entertainment and Theme Parks businesses.  

     

    Cable Communications

     

    Overall, Cable Communications reported a 5.2 per cent growth in Q3-2014 to $ 11,041 million dollars (65.8 per cent of TR) from $ 10,491 million (65 per cent of TR) in Q3-2013 and was almost flat (grew by 0.1 per cent) from the $ 11029 million (65.5 per cent of TR) in Q2-2014.

     

    Cable Communications Expenditure in Q3-2014 at $ 6,577 million was 5.3 per cent more than the $ 6,245 million in Q3-2013 and 1.7 per cent more quarter on quarter than $ 6,465 million.

     

    Here is what the company has to say about Cable Communications:

     

    ‘Customer relationships increased by 82,000 to 26.9 million during the third quarter of 2014, more than three-times the customer relationship net additions in the third quarter of 2013. At the end of the third quarter, penetration of our triple product customers increased to 36 per cent compared to 34 per cent in the third quarter of 2013. High-speed Internet customer net additions improved versus last year and were the strongest for a third quarter in five years. Video customer net losses improved 36 per cent year-over-year and were the best result for a third quarter in seven years. Voice net additions slowed, reflecting a focus on double play during the back-to-school season, as well as X1 availability that was more focused on triple play customers last year, making for a difficult comparison.’

     

    NBC Universal:

     

    Comcast’s NBC Universal grew 1.2 per cent in Q3-2014 to $ 5,921 million (35.3 per cent of TR) from $ 5,851 million (36.2 per cent of TR) in Q3-2013, but shrank 1.6 per cent from $ 6,016 million (35.7 per cent of TR) in Q2-2014. Operating Cash Flow increased 13.3 per cent in Q3-2014 to $ 1.4 billion as compared to $ 1.3 billion in Q3-2013, driven by strong results at Broadcast Television and Theme Parks, says the company.

     

    NBC Universal Expenditure in Q3-2014 at $ 4,505 million was 6.6 per cent lower than the $ 4,601 million in Q3-2013 and 1.7 per cent lower than the $ 4,582 million in Q2-2014.

     

     

    Cable Networks:

     

    NBC Universal’s Cable Networks’ revenue in Q3-2014 at $ 2,255 million was 0.7 per cent more than $ 2,239 million in Q3-2013, but 8.9 per cent lower than $ 2,476 million reported for Q2-2014.

     

    Cable Networks’ expenditure in Q3-2014 at $ 1,387 million was 0.1 per cent more than the $ 1,386 million for the corresponding quarter year ago and 11.2 per cent lower than the $ 1,562 million in Q2-2014.

     

    Advertising revenue from Cable Networks shrank 4.7 per cent to $ 796 million in Q3-2014 from $ 835 million in Q3-2013 and was 15.8 per cent lower than $ 945 million in Q2-2014.

     

    Cable Networks’ distribution revenue grew 5.1 per cent in Q3-2014 to $ 1,281 million in Q3-2014 from $ 1,219 million in Q3-2013 and grew 0.9 per cent from $ 1,270 million in Q2-2014.

     

    Its content licensing and other revenue shrank 3.8 per cent to $ 178 million in Q3-2014 from $ 185 million in Q3-2013 and fell a massive 31.8 per cent from $ 261 million in the immediate trailing quarter.

     

     

    Television Broadcasting:

     

    NBC Universal’s Television Broadcasting revenue grew 7.7 per cent to $ 1,770 million in the current quarter from $ 1,644 million in Q3-2013, but was 2.5 per cent less than the $ 1,816 million in Q2-2014.

     

    Television Broadcasting Expenditure in Q3-2014 at $ 1,628 million was 1.1 per cent more than the $ 1,610 million in Q3-2013 and 3.3 per cent more than the $ 1,576 million in Q2-2014.

     

    Television Broadcasting advertising revenue in Q3-2014 grew 4.4 per cent to $ 1,153 million from $ 1,104 million in Q3-2013, but was 7.4 per cent lower than the $ 1,245 million in Q2-2014. Broadcast Television content licensing revenue grew by 13.2 per cent from $ 355 million in Q3- 2013 to $ 402 million in the current quarter and was 16.9 per cent higher than $ 344 million in Q2-2014. Other revenue for Broadcast Television grew 16.2 per cent to $ 215 million in Q3-2014 from $ 185 million in Q3-2013, but was 5.3 per cent lower than $ 227 million in Q2-2014.

     

    Filmed Entertainment:

     

    NBC Universal’s Filmed Entertainment revenue in Q3-2014 was 15.3 per cent lower at $ 1,186 million from $ 1,400 million in Q3-2013 and 0.9 per cent more than $ 1,176 million in Q2-2014. The company attributes this drop to the tough competition with the strong box office performance of Despicable me 2 in Q3-2013.

     

    Filmed Entertainment Expenditure in Q3-2014 at $ 1,035 million was 14.5 per cent lower than the $ 1,211 million in Q3-2013, but 5.5 per cent higher than the $ 981 million in Q2-2014.

     

    Theatrical revenue in Q3-2014 at $ 265 million was 52.6 per cent lower than the $ 550 million in Q3-2013, and 35.9 per cent more than $ 195 million in Q2-2014. Filmed Entertainment content licensing revenue at $ 439 million was 15.8 per cent more than $ 355 million in Q3-2013 but 5 per cent lower than the $ 462 million in Q2-2014.

     

    Home Entertainment revenue at $ 321 million in Q3-2014 fell 10.6 per cent from $ 359 million in Q3-2013 and was 11.8 per cent less than the $ 364 million in Q2-2014. Filmed Entertainment’s other revenue at US$ 161 million in Q3-2014 was 58.3 per cent more than the $ 103 million in Q3-2013 and was 3.9 per cent more than the $ 159 million in Q2-2014.

     

    Theme Parks

     

    NBC Universal’s Theme Park revenue at $ 786 million was 18.9 per cent more than the $ 661 million in Q3-2013 and 27.8 per cent more than the $ 615 million in Q2-2014.

     

    Theme Park Expenditure in Q3-2014 at $ 384 million was 20.8 per cent more than the $ 318 million in Q3-2013 and 3.5 per cent more than the $ 371 million in Q2-2014.

     

    Click here for earnings presentation

     

    Click here for financial results

  • Fox or Time Warner: Who will blink first – Time Warner’s attempt to get more money?

    Fox or Time Warner: Who will blink first – Time Warner’s attempt to get more money?

    BENGALURU: Both the companies have issued official statements about the offer and rejection. Twenty-first Century Fox (Fox) issued a short, cryptic  three sentence statement –“21st Century Fox can confirm that we made a formal proposal to Time Warner last month to combine the two companies. The Time Warner Board of Directors declined to pursue our proposal. We are not currently in any discussions with Time Warner.” Fox waited for the appropriate time and made the bid within a few days of Time Warner completing the spinoff of Time Inc., and hence made the target more affordable for Fox.

     

    Speculation continues across media circles globally with some industry pundits claiming that the rejection of the Fox offer was a coy attempt by the Time Warner brass to get more money for the company. Time Warner shares closed last week at above USD 86 per share, already above the estimated USD 85 per share offered by Fox. If Fox wants to build more clout with Pay TV providers it actually is left with little option except to raise its bid, considering the fact that AT&T has announced a USD 49 billion deal to buy DirecTV and the friendly Comcast-Time Warner Cable merger is awaiting approvals. Other suitors could also make a pitch for Time Warner, hence raising the ante further.

     

    As mentioned earlier, Time-Warner had rejected Rupert Murdoch’s 21st Century Fox offer allegedly worth about USD 76 billion cash and stock. 21st Century Fox had offered to buy Time Warner for USD 32.42 in cash and offered a ratio of 1.531 Fox class-A share for each Time Warner share.

     

    Time Warner had in a statement last week said that the company was confident that its board’s strategy continues to deliver stockholder value and was superior to any proposal Fox had to offer.

     

    Excerpts of the Time Warner release:

     

     In making its determination, the Time Warner Board considered, among other things, that: The execution of Time Warner’s strategic plan will continue to drive significant and sustainable value for Time Warner stockholders; The unique value of Time Warner’s industry-leading businesses including its portfolio of networks and its film studio and television production business is only going to increase; There is significant risk and uncertainty as to the valuation of Twenty-First Century Fox’s non-voting stock and Twenty-First Century Fox’s ability to govern and manage a combination of the size and scale of Twenty-First Century Fox and Time Warner; and there are considerable strategic, operational, and regulatory risks to executing a combination with Twenty-First Century Fox.

     

    Citigroup Global Markets Inc. is acting as financial advisor to Time Warner while Cravath, Swaine & Moore LLP is acting as legal advisor.

     

     In the meantime, the US Federal Communications Commission (FCC) has set a deadline of 25 August 2014 for those interested in filing comments or petitions to deny the friendly Comcast Corporation (Comcast)-Time Warner Cable Inc., merger. (Time Warner Cable was spun off from Time Warner in 2009). The deal would give Comcast 30 million U.S. homes; about 30 per cent of all the cable households and 40 per cent of the high-speed internet market. In a statement in February 2014, Comcast had said that the stock-for-stock transaction in which Comcast will acquire 100 per cent of Time Warner Cable’s 284.9 million shares outstanding for shares of Comcast amounting to approximately USD 45.2 billion in equity value. Each Time Warner Cable share will be exchanged for 2.875 shares of Comcast, equal to Time Warner Cable shareholders owning approximately 23 per cent of Comcast’s common stock, with a value to Time Warner Cable shareholders of approximately $158.82 per share based on the last closing price of Comcast shares. Comcast also plans to expand its buyback program by an additional USD10 billion.

  • Fox or Time Warner, who will blink first?

    Fox or Time Warner, who will blink first?

    BENGALURU: If it had gone through, it would have been the second largest media deal ever in the history and created a mega media powerhouse, but Time-Warner rejected Rupert Murdoch’s 21st Century Fox offer allegedly worth about USD 76 billion cash and stock. Time Warner CEO Jeff Bewkes said that its board had decided such a deal would not be in the ‘best interests’ of his company or its shareholders. 

     

     Industry experts however expect Murdoch to make an improved offer, considering the fact that the media landscape is undergoing huge shifts. Murdoch has to gain scale as Pay TV distributors such as AT&T and Comcast are getting bigger and bigger through acquisitions, also Murdoch — is not known for backing off once he has set his sights on a company.

     

    21st Century Fox had offered to buy Time Warner for USD 32.42 in cash and offered a ratio of 1.531 Fox class-A share for each Time Warner share. That, says Fox Business, a 21st Century property, equates to around USD 86 a share, or USD 76 billion. The combined company would sport revenues of USD 65 billion, and control a slew of television channels like Fox, TNT, and HBO, along with movie studios 20th Century Fox and Warner Bros.

     

    Over the past few years, Time Warner has shorn off non-core business such as cable, internet and publishing and comprises a group of television and movie companies and has seen its stock price triple over the last five years.

     

    Last month on completing the spin-off of Time Inc., Bewkes said: “The spin-off of Time Inc. completes the process we began several years ago to position Time Warner as the world’s leading video content company.  Our strategy reflects our commitment to delivering strong returns to our shareholders as we light up the world with the best storytelling.  The spin-off gives Time Warner even more focus as we continue to deliver on this strategy.”

     

    A few days before the Time Inc., spinoff, as part of the studio’s television growth strategy, Times Warner subsidiary Warner Bros. Television Group (WBTVG) had announced that, following receipt of regulatory approvals, it had completed its acquisition of all Eyeworks’ businesses outside the US, in 15 countries across Europe, South America, Australia and New Zealand, adding 13 new territories to its international network of production companies. The company said that the Eyework acquisition further strengthened Warner Bros.’ international television production capabilities and sees Warner Bros. take over all of Eyeworks’ international distribution activities for both formats and finished product.

     

    The largest media deal so far was the Time Warner-AOL merger in 2000-01 worth USD 164 billion and was once considered as one of the biggest ‘mistakes’ in corporate history by Bewkes.

     

  • NDTV 24X7 hops on to Time Warner Cable in the US

    NDTV 24X7 hops on to Time Warner Cable in the US

    MUMBAI:  Hungry for expansion outside of India, one of India’s leading English news channels has grabbed a space on the coveted Time Warner Cable (TWC) in the US. NDTV 24X7 will now be available to subscribers in New York City as well as boroughs of Brooklyn, Manhattan, LA, Dallas, Austin and Rio Grande Valley region in Texas in the ‘Hindi Pass Plus’ or the ‘Passport Pack.’

     

    With this the channel aims to reach about 20,000 households through the partnership. The ‘Hindi Passport Pack’ costs about $70 while the ‘Hindi Pass Plus Pack’ costs about $40. The former has channels such as Star Plus, Sony, Zee TV, Life OK, Willow, TV Asia, Star Gold, NDTV 24×7, ITV Gold, Filmy, UTV Movies and Bollywood On Demand while the latter provides Star Plus, Sony, Zee TV, Life OK, Willow, TV Asia, NDTV 24×7 and ITV Gold.

     

    The subscription range for channels on this platform range from $1 million to $1.5 million. NDTV is also available on the DTH platform Dish Network. The average ARPU in the US is around $40 and packs such as Indian, Chinese, Arabic have high prices. Unlike India, NDTV 24X7 does not have to pay any carriage fee to the distribution platforms in the US.

     

    “Asian Indians in the US are among the affluent communities,” says NDTV AVP for network distribution and affiliate sales Rohit Jaiswal speaking to indiantelevision.com. “We will be looking at deals with more cable operators in the US going forward in the next two years,” he adds. Europe is also a part of the expansion plan since the channel says it is already well distributed in other parts of the world.

     

    NDTV Group CEO Vikram Chandra said in a press statement, “NDTV is delighted to partner with Time Warner Cable to bring its content and the election to an even wider audience in the US. The US is a very crucial market for us and the launch of the channel on TWC is a testimony to the trust that our affiliates and viewers from all over the world have shown in our brand and our quality over these years. NDTV, today, is available in 17 million households across 75 countries outside India and now looks forward to serving the TWC households with the same award-winning programmes and keeping them abreast with the constantly evolving events in India.”

     

    Earlier this year the US’s largest cable company Comcast announced that it intended to buy the second largest cable company TWC for $45 billion. This deal is under federal consideration for approval. If the proposed acquisition does get through, it could well be the pot of gold at the end of the rainbow for Indian channels.

  • AT&T to launch video service with Chernin Group

    AT&T to launch video service with Chernin Group

    NEW DELHI: American telecom service provider AT&T and The Chernin Group are acquiring, launching and investing in video services.

     

    It is understood that this will be more than a $500 million venture. The massive investment is seen as a response to the ongoing merger talks between Comcast and Time Warner Cable (TWC) and fiber-led Internet ambition of Google.

     

    AT&T announced its video investment plan hours after Comcast shared its Q1 2014 revenue that rose 13.7 per cent to $17.4 billion. Comcast Q1 income grew 16.3 per cent to $3.56 billion. Out of this, Cable Communications revenue increased 5.3 per cent.

     

    AT&T, which has invested more than $119 billion in the United States over the last six years, said it wants to tap the online video and OTT video market.

     

    Comcast, which is currently negotiating a $45 billion merger with TWC, said it added 124,000 cable customers in Q1 2014 and reached 26.8 million. It added 24,000 video customers in the first quarter of 2014. The company also added 383,000 high-speed internet customers. Internet revenue growth of 9 per cent is the strongest growth rate in two years.

     

    AT&T chief strategy officer John Stankey said: “Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group’s management and expertise in content, distribution, and monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”

     

    One-day before the video announcement, AT&T said it would expand its high speed internet network to an additional 21 cities in the American internet network. It also suggested that the online video venture will make AT&T a leader in the American broadcasting industry. It seems internet search engine Google may not be the big rival for AT&T, but Comcast and others.

     

    The Chernin Group, which invests in media businesses, brings assets and expertise to the venture, including contribution of its majority stake in Crunchyroll, a subscription video on demand service.

     

    This alliance positions AT&T and The Chernin Group to take advantage of the rapid growth of online video and OTT video services. The strategic goal of this initiative will be to invest in advertising and subscription VOD channels as well as streaming services.

     

    AT&T has over 110 million wireless subscribers and more than 16 million total broadband subscribers. Video makes difference to better customer experience. At present, Google and AT&T are competing in high speed internet network roll outs. AT&T will benefit from video as it will compensate possible revenue loss from voice services.