iWorld
YouTube ‘Unplugged’ likely to launch in 2017; ESPN, ABC, CBS ready to sign
MUMBAI: YouTube is working on deals with a few broadcasters including ESPN, ABC, and CBS for providing their TV service online without payment of any cable subscription.
While these three broadcasters seem closest to confirmation, there are reports that other large networks are also expected to soon get in on the action. The launch is expected in six to nine months or early next year.
The online streaming service may choose to give up smaller networks like HGTV, and try to replicate them with similar channels made up of YouTube videos.
A Bloomberg report said YouTube plans to call the service Unplugged and hopes to offer it for under $35 per month. The plan is to include a selection of key channels and to potentially sell small bundles of additional channels as add-ons.
However, YouTube Unplugged is bound to face some stiff competition whenever it eventually launches, with so many other established online TV services. It is learnt that YouTube’s plans might not go off completely without a hitch, as they are certainly not the only players in the space. There is Dish Network, Sony, and Hulu.com that are also offering similar deals for those who do not want to subscribe to cable.
YouTube Red, a subscription service that offers access to original shows, “doesn’t appear to be a hit.” And reports say this is “not surprising, given that many of YouTube’s one billion-plus visitors a month grew up not paying for anything on YouTube.”
It will be interesting to see how well the bigger broadcasters can play with major web streaming services.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
