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Tag: Morgan Stanley

  • Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    MUMBAI: In 2012 Tata Group chairman Cyrus Pallonji Mistry is believed to be offering Rs 2,000 crore for the Tata Sky’s amount of issue, according to a report.

    Mistry had had initiated the process to sell part of Tata Sky in his first initial public offering (IPO) move after becoming the group chairman and a recent report by Times of India says Tata Sky will also be the 30th publicly listed company from the Tata Group which currently has a combined market cap of nearly Rs 7.2 lakh crore.

    Early next week, the company’s investors, management, underwriters and counsel will hold the kickoff meeting to thrash out the red herring prospectus, Times of India reported.

    To take matters forward, Morgan Stanley, Citi and Kotak Mahindra Capital will manage the DTH provider’s offering in which Tata Sons owns 51per cent, media mogul Rupert Murdoch’s 21st Century Fox has 30 per cent, Singapore state investor Temasek 10 per cent, and Tata Opportunities Fund holds 9 per cent.

    Mistry has revived the plan to list Tata Sky on the domestic stock market, which will help the 47-year-old to part-monetize the asset by bringing in fresh funds to fuel the conglomerate’s growth plans and trim its debt. In fiscal 2015, its loss stood at Rs 267 crore.

    The report also stated that there are prospects of sale of new shares as well as of existing shares held by promoters including Tata Sons and Temasek, which has remained invested in Tata Sky since 2007. According to the report, Temasek wants to encash some of its holdings in the 12-year-old Tata Sky, which will have a gross profit of Rs 1,000 crore in fiscal 2016. Murdoch’s 21st Century Fox intends to retain its ownership, while Tata Opportunities Fund is undecided whether it wants to sell a stake in the IPO, the person added.

    Tata Sky intends to use the proceeds from the share sale to beef up its balance sheet. The company, which has emerged as the leader in the DTH field, will break even this financial year.

  • Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    Tata Group’s Cyrus Mistry plans Rs 2,000 crore IPO for Tata Sky

    MUMBAI: In 2012 Tata Group chairman Cyrus Pallonji Mistry is believed to be offering Rs 2,000 crore for the Tata Sky’s amount of issue, according to a report.

    Mistry had had initiated the process to sell part of Tata Sky in his first initial public offering (IPO) move after becoming the group chairman and a recent report by Times of India says Tata Sky will also be the 30th publicly listed company from the Tata Group which currently has a combined market cap of nearly Rs 7.2 lakh crore.

    Early next week, the company’s investors, management, underwriters and counsel will hold the kickoff meeting to thrash out the red herring prospectus, Times of India reported.

    To take matters forward, Morgan Stanley, Citi and Kotak Mahindra Capital will manage the DTH provider’s offering in which Tata Sons owns 51per cent, media mogul Rupert Murdoch’s 21st Century Fox has 30 per cent, Singapore state investor Temasek 10 per cent, and Tata Opportunities Fund holds 9 per cent.

    Mistry has revived the plan to list Tata Sky on the domestic stock market, which will help the 47-year-old to part-monetize the asset by bringing in fresh funds to fuel the conglomerate’s growth plans and trim its debt. In fiscal 2015, its loss stood at Rs 267 crore.

    The report also stated that there are prospects of sale of new shares as well as of existing shares held by promoters including Tata Sons and Temasek, which has remained invested in Tata Sky since 2007. According to the report, Temasek wants to encash some of its holdings in the 12-year-old Tata Sky, which will have a gross profit of Rs 1,000 crore in fiscal 2016. Murdoch’s 21st Century Fox intends to retain its ownership, while Tata Opportunities Fund is undecided whether it wants to sell a stake in the IPO, the person added.

    Tata Sky intends to use the proceeds from the share sale to beef up its balance sheet. The company, which has emerged as the leader in the DTH field, will break even this financial year.

  • Star eyes $500 million revenue from entertainment & sports by 2018: John Nallen

    Star eyes $500 million revenue from entertainment & sports by 2018: John Nallen

    MUMBAI: Rupert Murdoch’s 21st Century Fox is relying heavily on its subsidiary Star to lead its international growth.

     

    Explaining how Star’s growing entertainment ad revenues makes it a key player in the company’s plans to focus internationally, 21st Century Fox chief financial officer (CFO) John Nallen said, “One of the top priorities, uniquely for us is international. We’ve got a particular focus on growth outside the US. We continue to harness the assets we have in Star, FIC (Fox International Channels) and in Sky but we continue to be opportunistic to the extent we can outside the US.”

     

    As was reported earlier by Indiantelevision.com, this falls in line with a recent Morgan Stanley report that valued Star TV at $11.2 billion, where $300 million is the network’s gross revenue from entertainment business as of June 2015.

     

    Given the growth rate, Nallen anticipates that number to reach $500 million by 2018. “We feel confident about the $500 million target for 2018,” he said.

     

    It may be recalled that earlier this year, 21st Century Fox CEO James Murdoch had said that Star India is likely to earn operating income of $1 billion by 2020.

     

    The growth, according to him, is coming from two factors – entertainment and sports. “The first is the continued growth of the entertainment business, which is the hallmark of the Star business. We get 23-24 per cent market share every night. It’s a market that is growing. In the last six months TV ad market grew 21 per cent, we over-indexed because of our strength,” said Nallen.

     

    While entertainment continues to be a source of revenue for Star, its sports section is doing equally well. Seeing the prospects the company had earlier made its biggest sports investment by launching six sports channels with Star, which paid off for the network as “an enormous viewing success.”

     

    Nallen, who was speaking on the company’s business strategy for the next couple of years, at an industry summit, also pointed out on the company’s strong focus on expanding its international reach and growth through Star TV. “Top opportunity continues to be international, led by Star, which clearly is going to lead a lot of our international growth,” he said.

     

    Calling its Indian subsidiary – Star India, an undervalued asset, Nallen pointed out the growth statistic predicted from Star, which rides on the network’s continued success rate in the entertainment section, unlike the parent company’s recent experience of the same in the US.

     

    “Our ad growth in the US is coming from news and sports, and not from entertainment. If you take our total revenue, roughly 30 per cent of it comes from advertising. Two thirds of that advertising total comes from news, sports and international. The place that we are focusing on and the place people feel more vulnerable is entertainment advertising in the US. That’s the rest of the one third left,” Nallen said.

     

    Additionally, Nallen also clarified that Fox has no plans of further incremental investment in Star this year. “Not much more investment (in Star). This year we grew the investment because we extended one of the sports franchises that we started, the local Kabaddi sport that has turned into a phenomenon in India. There is not a massive new incremental investment that we need for Star,” Nallen informed.

  • Star India valued at $11.3 billion: Morgan Stanley

    Star India valued at $11.3 billion: Morgan Stanley

    MUMBAI: Media tycoon Rupert Murdoch has reason to cheer as 21st Century Fox’s India subsidiary – Star India has emerged as a strong contributor to the parent company.

     

    As per a brokerage firm Morgan Stanley’s Year End ‘Fair Market Value’ report for financial year 2016, Star India has been valued at a whopping $11.3 billion, leaving behind its competitors.

     

    The number makes a deeper impact on the parent company’s financial performance worldwide as ad revenue for the media giant from developed markets is slowing.

     

    End of June financial reports saw Star India’s earnings from just entertainment business alone at about Rs 1,920 crore.

     

    An earlier report titled ‘Grow Fox, Grow’ from the same investment firm recognised Star India’s growing profitability as one of the key drivers of healthy acceleration in financial year 2017 for 21st Century Fox. On the basis of their growing revenue, the report estimates Star India to contribute 11.3 per cent to the overall fair market value of the American parent.  The report comes in the wake of a financial statement released by 21st Century Fox highlighting their overall performance and acknowledges the role played by Star Sports in giving Fox a commendable financial year.

     

    In an earlier financial report released by the company, media mogul and 21st Century Fox executive chairman Rupert Murdoch highlighted the importance of their newly acquired sports rights. “The appeal of our new sports rights resonated with consumers globally, whether it was Star Sports in India setting new records with hundreds of millions of viewers for the ICC Cricket World Cup, or the more than 25 million viewers who watched the Women’s World Cup Final on FOX,” said Murdoch.

     

    With Star India acquiring broadcast rights of Board of Control for Cricket in India’s (BCCI) domestic and international matches in India through 2018, the network has made a conscious effort to optimise their revenues through sports in India.

     

    As per Morgan Stanley’s report, the other key factors that will dictate the Fox’s performance in FY17 include TV margin expansion, operating leverage from domestic affiliate revenue growth and growth at film productions, which was valued at $4.7 billion.

     

    On the other hand, the risks to the growth over the next two years are advertising pressures, pay­ TV sub erosion against the strong pricing growth at Fox’s networks and capital allocation as forecasters feel that Fox is most likely to lead the industry in the dynamic landscape ahead.

  • Siti Cable completes QIP; allots shares to QIBs

    Siti Cable completes QIP; allots shares to QIBs

    MUMBAI: Confidence, it appears is returning to select cable TV counters, the slow pace of digitization despite.

     

    The Essel Group owned national MSO Siti Cable Network’s long-standing effort to raise funds through a qualified institutional placement (QIP) successfully closed today.

    The company informed the Bombay stock exchange (BSE) late in the evening that its QIP Committee had allotted 6,31,74,540 shares on receipt of  Rs 221.11 crore from a group of qualified institutional bodies (QIBs) .

    The QIP issue for an aggregate amount not exceeding Rs 250 crore commenced on 27 February 2015 and closed on 4 March. The issue was made a premium of Rs 34 per Rs 1 share which was a discount of Rs 1.41 on the floor price.

    The Siti Cable counter had spurted to a 52 week high of Rs 38.50 on 4 March.

     

    Siti Cable informed the BSE that the QIBs who were allotted shares through the current QIP  include: Polus Global Fund (1,44,28570 shares); Orange Investments Ltd (34,28,570 shares); HDFC Trustee Co Ltd – HDFC Equity Fund (2,65,33,000 shares) ; HDFC Trustee Co Ltd – HDFC Core and Satellite Fund (15,16,000 shares); HDFC Trustee Co Ltd – HDFC India Tax Saver Fund (35,38,270 shares); Macquarie Asian Markets Emerging (15,00,000 shares); Reliance Capital Trustee Co (42,85,710 shares); Copthall Mauritius Investments (52,96,280 shares); and Morgan Stanley Asia Pacific (26,48,140 shares).

  • Dish TV, Hathway move to ‘overweight’: Morgan Stanley

    Dish TV, Hathway move to ‘overweight’: Morgan Stanley

    MUMBAI: Brokerage firm Morgan Stanley has some good news in store for direct to home (DTH) player Dish TV and multi system operator (MSO) Hathway Cable & Datacom. The firm has upgraded both Hathway and Dish TV to ‘overweight’, while also raising their target price, that represents an upside of 37 per cent and 20 per cent respectively, over the next 12 months.

     

    As per an Economic Times report, Morgan Stanley has downgraded Zee Entertainment to ‘equal weight’ with downside of 10 per cent. “Zee outperformed Hathway and Dish by 12 per cent and 24 per cent, respectively, in 2014 as they believe that a large part of the potential improvement in subscriptions for Zee is in the price,” said the report. 

     

    While upgrading Dish TV from ‘underweight’ to ‘overweight’, the target price of the DTH platform has been raised from Rs 49 to Rs 82. Not only this, Hathway has been upgraded from ‘equalweight’ to ‘overweight’, with a current target price of Rs 91 from Rs 59.   

     

    According to the brokerage firm, there is a sense of urgency on monetisation by the MSOs, which can push up realisations for both Hathway and Dish TV.

     

    “MSOs were unable to effect any sizeable improvements in realisations in 2014. However, the push from broadcasters to improve their subscription share has forced MSOs’ hands,” added the media report.

     

    As per Morgan Stanley channel checks, MSOs are responding by introducing higher value packs, raising prices and moving to a prepaid model.

     

    The firm expects these efforts to boost realisations for MSOs and create headroom for Average Revenue Per User (ARPU) expansion for DTH. 

     

    While an improving macro-economic outlook can help lift TV ad spending, margins could remain muted in F2016 for Zee due to new launches. Hence, Morgan Stanley prefers Hathway Cable followed by Dish TV and then Zee Entertainment Ltd.

     

  • GoDaddy initiates IPO

    GoDaddy initiates IPO

    MUMBAI: GoDaddy, the Scottsdale internet domain registration company, has filed a registration statement on Form S-1 with the US Securities and Exchange Commission relating to a proposed initial public offering.

     

    According to a press statement issued by the company, the number of shares to be offered and the price range for the offering has still not been determined. The company announced the filing in a tweet.

     

    International news websites have stated that GoDaddy has notified the Securities and Exchange Commission that it could raise about $100 million in an IPO.

     

    Morgan Stanley, JPMorgan Chase and Citigroup are leading the offering. Among the list of underwriters is KKR’s capital markets arm. He will remain as executive board chairman.

     

    In another recent development, the company also announced that its founder, Bob Parsons, will step down as executive chairman. GoDaddy was founded in 1997 and was bought in 2011 by a group of private-equity firms, led by KKR and Silver Lake, for $2.3 billion including debt.

     

    There have been reports that GoDaddy has reported a loss of $200 million or 79 cents a share on revenue of $1.13 billion in 2013. As of 31 March 2014, it reported assets of $3.25 billion against liabilities of $2.42 billion, including $1.09 billion in long-term debt.

     

    It was in the year 2005 that GoDaddy caught the attention of the world with its racy ads splashed during Super Bowl. Though the brand is known for its outrageous and funny ads in the last couple of years it has toned down its marketing. 

     

    It will be interesting to see how GoDaddy will reposition itself post IPO.

  • YouTube ad revenue may rise by 50 per cent to $5.6bn

    YouTube ad revenue may rise by 50 per cent to $5.6bn

    MUMBAI: YouTube, the online video streaming giant, is growing than ever before. According to a new report by eMarketer, YouTube’s advertising revenue is expected to rise by more than 50 per cent to $5.6 billion in 2013, also posing a threat to traditional TV ads.

     

    The report by eMarketer claims that YouTube has become a huge favourite among advertisers and it will account for 11 per cent of advertising revenue at Google, YouTube’s parent. Earlier in May, Morgan Stanley predicted that YouTube’s gross revenue would reach $4 billion in 2013, while Barclays suggested a likely figure of $3.6 billion and Jefferies & Co’s $4.5 billion

     

    Google has not revealed YouTube’s earnings, but eMarketer research suggests that the search engine got a bargain when it paid $1.65 billion for the site in 2006. However, the streaming site does not keep all the advertising revenue as it has to pay a share to advertising partners and providers of content.

     

    Google’s public statistics for YouTube include the fact that the service attracts one billion people watching more than six billion hours of video a month, with 80 per cent of its traffic coming from outside the US, and 40 per cent of its viewing on mobile devices.

     

    Advertisers are keen to buy slots on YouTube because of its young audience, who prefer to watch TV programmes through their computers, tablets and mobile phones rather than conventional televisions.

     

    About 79 per cent of YouTube’s US ad revenue is from video advertising, with an estimated $850 million for the year. That would give it a 20.5 per cent share of the overall $4.15 billion US video ad market. eMarketer estimates that YouTube video-ad revenue would hit $1.22 billion in 2014, taking a 21.1 per cent share.

  • YouTube could make $20 bn in 2020: Morgan Stanley

    YouTube could make $20 bn in 2020: Morgan Stanley

    MUMBAI: When Google bought online video service YouTube for $1.6 billion six years ago some eyeballs were raised about whether the move was smart or made sense.

    While it took the search giant a while to figure out the revenue model things are now moving full steam ahead. In fact the progress has been so good that Morgan Stanley has said that YouTube can make $20 billion in revenue and operating income of $5 billion in 2020.

    YouTube will make $4 billion in gross revenue and $711 million in operating income this year.

    The interesting thing is that YouTube is not just relying on advertising. It has started a paid subscription service for some channels. The aim is to allow for more interaction between content creators and consumers. Channels that have availed of this service include Acorn TV, Jim Henson Family TV and UFC Select.

  • Forstmann Little hires Morgan Stanley to find a buyer for IMG Worldwide

    Forstmann Little hires Morgan Stanley to find a buyer for IMG Worldwide

    MUMBAI: Forstmann Little & Co has hired investment bank Morgan Stanley and Evercore Partners (EVR) to find a buyer for sports management company IMG Worldwide.

    IMG Worldwide operates in the areas of sports, fashion and media, creating and managing events, organisations, celebrities and brands. Among other things IMG also manages the organisation of the Indian Premier League (IPL).

    Reports add that potential buyers include Creative Artists Agency, William Morris, Lagardere and Guggenheim Partners. Closer home Mukesh Ambani is said to be interested and the price tag could be in the region of $2-3 billion. Right now Ambani already has a joint venture in India for IMG Reliance. Among other things the JV works with the All India Football Federation (AIFF) and the Basketball Federation of India (BFI). Also Ambani owns the Mumbai Indians IPL franchise.

    The question is what impact a potential deal could have on the country? Percept joint MD Shailendra Singh feels that if this deal goes through it will be a moment of pride for the country. “It will be a moment of pride for India to have an Indian owning an iconic sports brand. But I don‘t think that it will impact the sports business in India much. The consumer has not changed. It is still about cricket and Bollywood. You have to also understand that the Ambani family is now enjoying sports. For Reliance $2 billion is petty cash.”

    In terms of IMG Worldwide among other things representing the interests of international sportspersons activity in this area will not affect India. “Ronaldo can be seen in many countries endorsing products. But do you see him in India doing that? To sell products you still need Shah Rukh Khan.”

    He also feels that if the deal happens it will be an investment deal like what Anil Ambani has with Steven Spielberg. “Reliance will let the IMG management run things. You don‘t see Anil Ambani advising Spielberg on the script to shoot,” he adds.

    Alchemist MD and promoter Manish Porwal said that he is not surprised at the development. “When IMG and Reliance announced their JV I always felt that they would not just let it be like that. They would find a way to make it grow and take it in different directions. There could be synergies between IMG and Mumbai Indians. You could also see IMG organising more events in different sports in India.”

    In terms of international sport stars and celebrities endorsing Indian products on a regular basis that according to him is still two to three years away from happening on a regular basis. “You have seen Michael Schumacher and Maria Sharapova endorsing Indian real estate companies. But these are one off deals. Right now there is a mismatch between the cost of an international celebrity and the fan following that celebrity has in India. Things will change in the coming two to three years. That is because more Indians will follow international celebrities. A point will come when companies feel that it makes sense to use them in India. Right now companies like Omega use international celebrities in India as a part of their global plan.”