Part of our bullish thesis on CHTR has been the company’s ability to use its business and operating momentum (and a friendly bank loan and high-yield bond market) to reduce interest expense and generate FCF. With CHTR stock up over 30% YTD, it is approaching a level at which management can call its convertible bonds…
They are selling Famous Music (music publishing biz) to Sony for around $370 mm (reports the WSJ) – this is a great valuation for a biz with less than $20 mm of annual EBITDA. Sony can afford the high price because it simply tacks on the Famous Music catalog to its own music publishing assets.…
Virtually all of Myspace’s revenues (now at or above $30 mm globally per month) has been derived from advertising (including sponsorship). With nearly 67 million unique users in the US alone, the big opportunity for Myspace is to expand its monetization of traffic beyond advertising. The only real commerce initiative-to-date on Myspace has been a…
Cablevision (in a story first broken by Cablefaxdaily) has decided that its $90 triple play (video, data and voice) offering is now available to existing video-only subscribers rather than only to new subscribers. CVC’s step-by-step marketing process over the past couple of years: Rollout $90 Triple Play to new subscribers to entice new connects and…
Below are the links to the documents referenced in our WMG music report issued today. Exhibit E in PDF #1, slide 54 highlights how overstated WMG’s music industry forecasts were heading into its acquisition of Warner Music from Time Warner, as it states: “Our conservative case analysis indicates market declines through 2005, with renewed moderate…
We believe investors have become far too pessimistic about Shrek the Third‘s prospects. We believe the film is tracking quite well, with virtually no competitive family films in the market. In addition, it appears that “mother nature” may play a supporting role this weekend (rainy Friday/Saturday) driving up total weekend box office. According to mid-week…
If you have ever created your own Myspace page, then you already know how outdated the customization options are — essentially everything must be done utilizing HTML code. In turn, most Myspace users go outside of Myspace to customize their layout (click here for a Google search of Myspace + Layouts in Google). Myspace has…
While the main driver of the National Cinemedia story is its in-theater advertising business prior to the advertised movie start-time, NCMI’s ability to utilize its member screens for Events & Meetings offers meaningful incremental revenue opportunities. According to a NY Times story (click here), the Metropolitan Opera is expected to notably expand its movie theater…
We continue to become encouraged by the CVM activity in examining the fairness of transactions in Brazil. A Financial Times story today reported that that the CVM “found that Ernst & Young and JPMorgan significantly overestimated the value of a Brazilian mobile telephone operator while working on a merger that took place in May 2003”.…
We believe a merger of major operators in Brazil is not only feasible under current regulations and anti-trust law, but would also not require a large migration or divestiture of existing customers. We detail our thoughts on the possible mergers of TIM/Vivo, TIM/Claro and Claro/Vivo in the text below.
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