Here’s the big media deal everyone has been waiting for. Or at least, here’s the report: Sharon Waxman of TheWrap reports that cable giant Comcast is buying all of NBC Universal from GE for $35 billion. Comcast says the report is “inaccurate.”
Even when the M&A market was shut down, Wall Street couldn’t stop speculating about GE’s intentions for its NBC Universal unit. And now that it’s deal-making time again, the chatter is getting very noisy.
Hence the flurry of coverage over yesterday’s remarks by Vivendi CEO Jean-Bernard Levy, in which he said…not very much.
What happens to a start-up whose business never materializes? One option is to try to peddle the company based on the value of its human capital–aka the “acqhire.” Or would-be employers can simply wait for the start-up to flame out, then pick up the people they want on an a-la-carte basis. Did that just happen with Time Warner Cable and former Joost CTO Jason Gaedtke?
There is no shortage of places to watch TV shows free on the Web. There’s a glut of them, really. But here comes another: AT&T Entertainment. How is it different than Hulu, TV.com, Sling.com, Fancast, etc.? It’s not.
Did a federal court just give underemployed M&A guys a boost? Could be: The United States Court of Appeals in Washington, D.C., has overturned a longstanding cap on cable-system ownership.
If the decision holds up, it could well start another round of dealmaking similar to the one we saw at the beginning of this decade in which the industry consolidated to about half a dozen major players.
Another feather for the “we’ve got real stuff” cap that YouTube is showing off these days: Google’s video site has hammered out a deal with Time Warner to show clips from the media conglomerate’s cable networks, TV shows and movies. But you won’t be seeing full-length shows or movies from Time Warner on the world’s biggest video site–it’s saving those for cable companies that play along with its “TV Everywhere” plan.
Another big player has signed onto Comcast’s Web TV trial: Discovery Communication is handing over a few of its shows for the cable provider’s program, which gives subscribers online access to (some) of the shows they get on TV. Discovery joins other big names like CBS and HBO in Comcast’s “On Demand Online,” which launched last month in a few thousand homes.
Yet another sign that revenue-free start-ups can still attract investors, given the right pitch: Boxee, the software company that makes it easy to get Web video onto your TV, has raised a $6 million B round led by General Catalyst. I’m told the new round pegs the company’s value in the $25 million to $30 million range. What’s the appeal? The chance that the company could play a role in the disruption of the $70 billion TV business.
Yet another addition to the growing list of programmers signing on to Comcast’s “On Demand Online”: CBS will join the cable provider’s trial program, which will allow subscribers to get Web access to shows they get on TV.
CBS will join previously announced partners Time Warner, which is offering up programming from its Turner channels and HBO; Liberty Media’s Starz, and smaller players like Scripps, Rainbow and A&E. The twist is that CBS is the only broadcaster to sign up for the trial.
Liberty Media’s Starz Entertainment has signed on to Comcast’s “On Demand Online” program, which is the first test of the cable industry’s “authentication”/“entitlement” strategy. Or, as I like to call it, “Web TV You’ll Pay to See.”
Starz, which has the cable and Web rights to much of the Disney catalog, among other assets, says it will make some of those films, including “Wall-E” and “High School Musical 3,” available for Comcast’s test, which is supposed to launch this month. Also available: TV series like “Crash” and non-Disney movies like Sony’s “Step Brothers.”
The more I hear about the supposed plan for an Internet cafe company to buy the world’s best-known illegal file-sharing site, the more I think that the whole thing is a farce.
So this one doesn’t even faze me: Swedish regulators are looking into insider trading charges at Global Gaming Factory X, which saw shares jump several days before it said it would buy The Pirate Bay.
Here’s the beginning of the inevitable online video shakeout: Joost, the once-hyped video service that was supposed to rival Google’s YouTube, is restructuring to focus on “white label” services, i.e., a back end for other video players.
The site is laying off the majority of its 100-plus employees, and CEO Mike Volpi is out, replaced by Matt Zelesko, who had been SVP of engineering.
Comcast was mum about other cable networks it has persuaded to join its “OnDemand Online” program, which will offer TV shows over the Web to its customers. But word is getting out anyway. The people who bring you Food Network and AMC, for instance, have signed on.
Time Warner CEO Jeff Bewkes and Comcast CEO Brian Roberts will announce this morning that their two companies are linking up for a trial of an “authentication” effort. That means a handful of cable subscribers will get online access to Time Warner TV shows that have been previously kept off the Web. The idea is to protect cable subscription revenues by giving pay TV subscribers–but only subscribers–Web access to all the shows they get on TV. It’s a simple idea, but making it a reality will be very, very complicated.
Don’t want to pay $1 for a song on iTunes? Try $80,000 a pop. That’s what a federal jury in Minneapolis has told a woman to pay the music industry for illegally downloading 24 songs, bringing her total bill to $1.92 million. Her response: “Good luck trying to get it, because you can’t get blood out of a turnip.”
Peter Kafka has been covering media and technology since 1997, when he joined the staff of Forbes magazine. Most recently, he has been the managing editor of the tech and media Web site, Silicon Alley Insider. Read more »
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
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