ITV

Tag: Fox

  • Appeals Court allows Netflix to proceed with lawsuit challenging Fox’s employment contracts

    Appeals Court allows Netflix to proceed with lawsuit challenging Fox’s employment contracts

    MUMBAI: A California court has finally paved the way for Netflix to take on 20th Century Fox. Cancelling an appeal from Fox, a three-judge panel has allowed the streaming giant to take forward a lawsuit that seeks to invalidate Fox’s fixed-term employment agreements.

    The conflict between the two giants in the global entertainment industry started back in 2016. Two executives of the company including Tara Flynn, a former development executive at Fox 21 TV Studios and Marcos Waltenberg, a former Fox film marketing executive left the company in that year.

    Fox, infuriated by the incidents, sued Netflix blaming the latter for illegally poaching two of its executives and encouraging to break employment contracts. 

    Following the suit, Netflix responded with a counter-suit alleging those deals were unenforceable. It also argued that Fox was compelling employees to stay in the company against their will.

    Fox sought to throw out the Netflix countersuit with an anti-SLAAP motion arguing that it concerned protected speech. However, a Los Angeles Superior Court judge rejected the motion. Again, the appeal court judges upheld the ruling. After the decision, the initial suit and the counter-suit will now proceed at the trial court level.

    “The acts that supply the elements of Netflix’s claims are Fox’s alleged business practices of utilizing fixed-term agreements with allegedly unlawful and restrictive clauses and selectively determining which employees will be allowed to terminate those contracts early,” the judges found as per media reports.

  • Hulu signs deal for Viacom series

    Hulu signs deal for Viacom series

    MUMBAI: Hulu has obtained exclusive rights to stream full series from Viacom, including Daria, Nathan for You, My Super Sweet 16 and The New Edition Story. The company will gain the rights to 20 films, including School of Rock.

    According to the reports, the agreement includes content from Nickelodeon as well, like Nick Cannon’s musical show Make It Pop, animated programs Kung Fu Panda: Legends of Awesomeness and Penguins of Madagascar.

    Hulu, co-owned by Comcast, Disney, Fox and Time Warner, said earlier that it is parting ways with chief content officer Joel Stillerman, as well as senior VP of experience, Ben Smith and a senior VP in partnerships and distribution Tim Connolly.

    A combined technology and product group that will report to new CTO Dan Phillips, formerly COO at TiVo is being created by the company. That organisation will span engineering, data centre operations, network and broadcast operations centres, information technology and program management, as well as product management, user experience and product development.

  • What next with Fox-Disney-Comcast ?

    What next with Fox-Disney-Comcast ?

    MUMBAI: Part poker, part chess. That’s exactly how the Disney-Comcast bidding war for Rupert Murdoch’s entertainment conglomerate – 21 Century Fox – is being played out. The intense, see-saw battle for the media empire, which includes Hollywood studios, cable networks and streaming businesses, isn’t nearing its end just yet. Nine days out of 10, $70 billion will get you whatever your want in life. But when you’re up against Comcast, the tenth day is the one that matters and even $70 billion might not be enough.

    According to analysts and industry insiders, Comcast is set to return to the negotiating table with a new and improved offer in the  low-to-mid $40s a share range. This could effectively take the bidding to $80 billion, 10 more than Disney’s cash and stock offer.

    Disney’s new bid on Tuesday, was 35 per cent higher than its earlier offer and close to $6 billion more than Comcast’s. But as things stand, they could end up paying more than they’d anticipated.

    Why? Because Comcast isn’t likely to budge given the pressure on its pay-TV business. Hence in its attempt to diversify and attain scale, the Fox bid is an important play for the company’s strategy going forward.

    However, the Disney executives know that the six-month head start they enjoy over Comcast in terms of regulatory review, could end up swinging this deal in their favour. Irrespective of what the winning bid is, a Disney-Fox deal, will get past the regulators far quicker than a Comcast-Fox deal is big boss Bob Iger’s belief. 

    And Murdoch understands this. He also understands how eager Bob Iger and Brian Roberts are to shake his hand in order to land some of the world’s hottest properties – 20th Century Fox film studio, the FX and National Geographic cable channels, almost two dozen regional sports networks, a stake in Sky and Star India.

    A handful of investment analysts are watching with their faces grimacing in pain. They worry that the debt both the mouse house and Comcast will take on in their hunger to swallow up Fox could topple them over. But both Iger and Roberts are not perturbed by the carping. 

    We now await the next instalment of this blockbuster. Disney’s made its move, Comcast is on the verge of making one. Call it the chess board or the poker table, Murdoch owns them both.

  • Disney makes $70.3 billion counterbid for Twenty-First Century Fox

    Disney makes $70.3 billion counterbid for Twenty-First Century Fox

    MUMBAI: 21st Century Fox has announced that it has entered into an amended and restated merger agreement with The Walt Disney Company pursuant to which Disney has agreed to acquire for a price of $38 per 21CF share the same businesses. Disney agreed to acquire under the previously announced merger agreement between 21CF and Disney. 

    This price represents a significant increase over the purchase price of approximately $28 per share included in the Disney Merger Agreement when it was announced in December 2017.  The amended and restated Disney Merger Agreement offers a package of consideration, flexibility and deal certainty enhancements that is superior to the proposal made by the Comcast Corporation on June 13, 2018.

    Under the amended and restated Disney Merger Agreement, Disney would acquire those businesses on substantially the same terms, except that, among other things, Disney’s offer allows 21CF stockholders to elect to receive their consideration, on a value equalized basis, in the form of cash or stock, subject to 50/50 proration. The collar on the stock consideration will ensure that 21st Century Fox shareholders will receive a number of Disney shares equal to $38 in value if the average Disney stock price at closing is between $93.53 and $114.32. 

    “We are extremely proud of the businesses we have built at 21st Century Fox, and firmly believe that this combination with Disney will unlock even more value for shareholders as the new Disney continues to set the pace at a dynamic time for our industry,” said Rupert Murdoch, Executive Chairman of 21st Century Fox. “We remain convinced that the combination of 21CF’s iconic assets, brands and franchises with Disney’s will create one of the greatest, most innovative companies in the world.”

    In light of the revised terms contained in the amended and restated Disney Merger Agreement, 21CF’s board, after consultation with its outside legal counsel and financial advisors, has not concluded that the unsolicited proposal it received on June 13, 2018 from Comcast could reasonably be expected to result in a “Company Superior Proposal” under the Disney Merger Agreement. 

    However, the amended and restated Disney Merger Agreement contains no changes to the provisions relating to the Company’s directors’ ability to evaluate a competing proposal.

    As announced on May 30, 2018, 21CF has established a record date of May 29, 2018 and a meeting date of July 10, 2018, for a special meeting of its stockholders to, among other things, consider and vote on a proposal to adopt the Disney Merger Agreement.  21CF has determined to postpone its special meeting of stockholders to a future date in order to provide stockholders the opportunity to evaluate the terms of Disney’s revised proposal and other developments to date. Once 21CF determines the new date for 21CF’s special meeting of stockholders, the date will be communicated to 21CF stockholders.

  • Endemol Shine hires banks for a possible sale

    Endemol Shine hires banks for a possible sale

    MUMBAI: Netherlands-based TV production company, Endemol Shine Group, has hired Deutsche Bank and Liontree to explore a potential sale that could be valued between $2- $4 billion including debt.  

    Endemol Shine Group is known for its popular programs like Black Mirror, Big brother and MasterChef. 

    Endemol is co-owned by 21st Century Fox and Apollo Global Management in a 50:50 partnership. Both parties agreed to sell their stake if a suitable buyer is found.

    In a  multi-billion dollar media deal ($52 billion) last year, Fox sold 50 per cent stake in Endemol to Disney. That deal is now being challenged by Comcast. 

    Although Fox is supportive of the business, it does not want to acquire Endemol given its deal with Disney. 

    The cash from this sale is likely to go to Comcast or Disney, depending on who ends up with Fox’s assets, according to a report by CNBC. 

    It was earlier reported that United Kingdom based media company, ITV, wanted to consider buying the Endemol Group, should a formal process for sale begin. Whether the company will buy it or give it a pass will be something worth looking into.

  • AT&T, Time Warner’s merger cleared by court

    AT&T, Time Warner’s merger cleared by court

    MUMBAI: 20 months after AT&T’s announced its potential deal for Time Warner, the US District Court for the District of Columbia has cleared the merger between the two giant companies. The ruling will now enable AT&T to purchase Time Warner for $85 billion.

    Many analysts see the judgment as a blow to the Donald Trump administration that was not in favour of the deal.

    US district judge Richard Leon said the government’s objections “rested on improper notions”. The deal will enable AT&T to acquire Time Warner’s blue-chip media properties including HBO and CNN.

    “We are pleased that, after conducting a full and fair trial on the merits, the Court has categorically rejected the government’s lawsuit to block our merger with Time Warner,” AT&T General Counsel David McAtee said in a statement.

    The statement also mentioned the plan to close the merger on or before June 20. Vanity Fair’s intrepid media writer Joe Pompeo has reported that AT&T will rename Time Warner soon.

    The merger will bring change in the field of online distribution of content. AT&T will have a big library of content including big hits like HBO’s “Game of Thrones”.

    With the emergence of giants like Netflix and Amazon, it has been often said that content creation and distribution needs innovation to survive against their onslaught.

    With AT&T and its considerable finanacial clout now in the mix, the market dynamics are bound to change, impacting all the key players.

    Also Read:

    Time Warner shareholders approve merger with AT&T

    AT&T unveils live video streaming service, DirecTV Now

  • With Fox Deal, Comcast and Disney Wish Upon a Star in India

    With Fox Deal, Comcast and Disney Wish Upon a Star in India

    MUMBAI:  As Walt Disney Company and Comcast Corporation gear up for a possible bidding war over a big chunk of 21st Century Fox, both companies are interested in Fox’s Hollywood franchises The Simpsons, Avatar and X-Men.

    But it is learnt that among the most desired asset is Indian media conglomerate Star India, which is fully owned by Fox.

    While neither Comcast or Disney have a big presence in India, each view Star India as an important piece in their plans to challenge Netflix and tap growth in emerging markets. 

    Star India reaches 700 million customers a month in India, with 60 channels in nine different languages and owns rights to broadcast popular cricket tournaments along with a stake in a production company that makes Bollywood movies. Perhaps its biggest selling point now is Hotstar that has around 150 million active monthly users.

    Star India CEO Uday Shankar thinks that with this, Hotstar is setting the agenda for the future.

    Wall Street research firm MoffettNathanson estimated Star will make EBITDA of $826 million by 2020, which will be a 91per cent jump from this fiscal year. Fox, which had $7.17 billion in adjusted operating income on $28.5 billion in revenue in its most recent fiscal year, has said it believes Star will earn $1 billion in EBITDA by 2020.

    Cable giant Comcast said last month that it is in the advanced stages of preparing a rival, all-cash bid.

    The assets for sale include the 20th Century Fox film and television studio, various cable networks and Fox’s stake in the streaming service Hulu. But among the most compelling assets—especially for Comcast—are the international ones, Star India and Fox’s interest in European pay-TV operator.

    Buying Star would come with some risks. Sports rights deals, if they follow the course of the U.S. and Europe, could become much more expensive upon renewal. And there could be new competition from the telecom companies driving India’s wireless data boom, including Jio, as they start offering their users content.

    Edelweiss Capital Ltd. senior vice president of research at Mumbai-based Abneesh Roy said that while user cancellations of cable and satellite TV service are plaguing the U.S. pay-TV industry, “in India, cord-cutting is absolutely a nonissue” and pay-TV is still expanding, he added.

    Over the past 10 years, Shankar has expanded Star’s distribution. It now reaches nine out of 10 Indian homes. Star’s programming includes everything from prime-time soaps to dance competitions and highlights of international sports events. It has worked to add content in languages other than Hindi and English. As the economy grew, people who spoke regional dialects had more purchasing power and more appeal for advertisers. “Not plugging into that change would have been a loss of opportunity,” Shankar said.

    It agreed last year to acquire the global TV and digital rights to India’s wildly popular annual cricket competition, the Indian Premier League, in a deal valued at $2.42 billion at current conversion rates. Star fended off a bid by Facebook Inc. for the digital rights.

    Last month, 160 million people watched the final on Star TV networks and 51 million watched it on Hotstar, up from 121 million on TV and 21.6 million on Hotstar a year before.

    Hotstar is geared to run on mobile devices, targeting the many people who rely on cellphones for entertainment.  “In this country, for many people, their first experience of screen is with a mobile screen,” Shankar said.

    Also Read:

    Sony takes audiences to the crossroads with new show

    ITV Network readies Punjabi music channel

    Enterr10 to launch two Bengali channels

  • 21CF special meet on Disney merger issue on July 10

    21CF special meet on Disney merger issue on July 10

    NEW DELHI: Is the Disney-21st Century Fox merger a done deal? The twists and turns in real life probably match a Hollywood corporate thriller produced by the media company. Second suiter Comcast hasn’t yet given up even as the Rupert Murdoch family-promoted company said on Wednesday that on 10 July 2018 a special meeting has been scheduled for vote on the merger agreement with The Walt Disney Company.

    In a statement put out, 21CF said the special meeting of its stockholders would, among other things, “consider and vote” on a proposal to adopt the previously announced merger agreement with The Walt Disney Company and certain of its subsidiaries.

    21CF’s board of directors recommends that stockholders vote in favour of the proposal to adopt the Disney Merger Agreement and the other proposals to be voted on at the special meeting.

    Comcast in recent times has said that it’s preparing a new bid for 21CF to counter the Disney offer, which if okayed by both the companies’ shareholders and boards, and regulators, would go on to create a global behemoth straddling most streams of media and entertainment sectors. It would also decide the roadmap for India’s biggest (unlisted) media company, Star India.

    The official statement from the Murdoch company said: “21CF is aware of the press release of Comcast Corporation of 23 May 2018, in which Comcast states that ‘it is considering, and is in advanced stages of preparing, an offer for the businesses of Fox that Fox has agreed to sell to Disney’. Under the Disney Merger Agreement, if any event occurs that 21CF determines, after consultation with outside legal counsel, is reasonably likely to require under applicable law the filing or mailing of any supplemental or amended disclosure, 21CF may postpone or adjourn the special meeting of its stockholders to allow reasonable additional time for the filing, mailing, dissemination and review by its stockholders of any such disclosure prior to the special meeting.”

    21st Century Fox is one of the world’s leading portfolios of cable, broadcast, film, pay TV and satellite assets spanning six continents across the globe. Reaching more than 1.8 billion subscribers in approximately 50 local languages every day, 21st Century Fox is home to a global portfolio of cable and broadcasting networks and properties, including FOX, FX, FXX, FXM, FS1, Fox News Channel, Fox Business Network, FOX Sports, Fox Sports Network, National Geographic Channels, Star India, 28 local television stations in the U.S. and more than 350 international channels.

    The portfolio also includes film studio Twentieth Century Fox Film, television production studios Twentieth Century Fox Television, 50 per cent ownership interest in Endemol Shine Group, apart from approximately 39.1 per cent of the issued shares of Sky, Europe’s leading entertainment company, which serves nearly 23 million households across five countries.

    Also Read :

    With Star India, Disney emerges as India’s largest M&E firm

    Lachlan Murdoch to lead New Fox after Disney sale, James is out

    Uday Shankar becomes president of 21st Century Fox, Asia

    Disney expected to announce 21 CF buyout tomorrow: media reports

  • Netflix beats Comcast in market value

    Netflix beats Comcast in market value

    MUMBAI: Streaming giant Netflix, on its upward journey, has surpassed Comcast’s market value owing to a new record high of its stock price. Netflix’s market value stands closer to Disney now. While Netflix ended yesterday with a total market cap of $152.8 billion, Comcast ended with $147.15 billion.

    Since the beginning of this year the company has been showing good financial performance. Its stock has been up 70 per cent since the beginning of 2018. Its Q1 2018 earnings report showed it making a net profit of $290 million.

    Netflix has stuck a production deal with former US president and his family – the Obamas – which has led to a four per cent increase of its stock. On the other hand, Philadelphia-based cable TV conglomerate Comcast’s stock ended the day down around 2 per cent.

    Meanwhile, Comcast has confirmed it is in advanced stages of preparing an offer for the businesses that Fox had agreed to sell to Disney. The former is gearing up to top Disney’s $52 billion (€44.4bn) offer for 21st Century Fox.

    “Comcast Corporation confirms that it is considering, and is in advanced stages of preparing, an offer for the businesses that Fox has agreed to sell to Disney (which do not include the Fox News Channel, Fox Business Network, Fox Broadcasting Company and certain other assets),” it said in a statement.

    “Any offer for Fox would be all-cash and at a premium to the value of the current all-share offer from Disney. The structure and terms of any offer by Comcast, including with respect to both the spin-off of New Fox and the regulatory risk provisions and the related termination fee, would be at least as favourable to Fox shareholders as the Disney offer,” it added.

    Also Read:

    Now, Comcast in talks to buy 21st Century Fox

    Comcast may renew bid for 21st CF

  • Lachlan Murdoch to lead New Fox after Disney sale, James is out

    Lachlan Murdoch to lead New Fox after Disney sale, James is out

    MUMBAI: The Murdochs-led 21st Century Fox has unveiled a new executive structure of the upcoming New Fox group after Disney buys out its other assets as proposed.

    Lachlan Murdoch will be chairman and CEO while father Rupert Murdoch will hold on as co-chairman. Since 2015, Lachlan has been executive chairman of 21st Century Fox. He works directly with the company’s senior management and board of directors in developing global strategies and setting the overall corporate vision. He also currently serves as co-chairman of News Corp and executive chairman of NOVA Entertainment, an Australian media company.

    Speaking on the changes, Lachlan Murdoch said: “We have worked through the winter ‘standing up’ a reimagined independent Fox. I am very pleased that John has agreed to take on the role of chief operating officer, and together we look forward to making further announcements as to the management and structure of this new Fox as we get closer to closing our proposed transaction with Disney.”

    21st Century Fox CEO James Murdoch has found no place at New Fox, which is news and sports focussed. Instead, James will be launching his own venture.

    Chief financial officer John Nallen will be the chief operating officer but current president Peter Rice didn’t find a seat at the helm. “The opportunity to reshape a business strategy and an operational approach uniquely tailored to the new Fox is truly compelling. I look forward to joining Lachlan as we begin to establish new Fox,” said Nallen.

    “The new Fox will begin as the only media company solely focused on the domestic market; focused on what Americans love best—sports, news and entertainment, built and delivered for a US audience,” said Rupert Murdoch.

    New Fox will have Fox News, Fox Business Network, Fox Broadcasting Company, Fox Sports and Fox Television Stations Group as well as sports cable networks FS1, FS2, Fox Deportes and Big Ten Network.

    A while ago, the Walt Disney Company agreed to a pay $52.4bn for Fox’s other assets including film and TV studios, US cable networks and international channels. Disney also gets a shot at National Geographic, FX and FXX, and even a 30 per cent interest in Hulu, which gives it a controlling stake in the US streamer. The deal also comes with stakes in Sky and Endemol Shine Group.