iWorld
HBO Max and HBO end 2021 with ~73.8 million subscribers globally
Mumbai: HBO Max and HBO have ended 2021 with ~73.8 million subscribers across the globe, WarnerMedia CEO Jason Kilar announced on Wednesday ahead of the company’s fourth quarter earnings call.
It has added 4.4 million subscribers in the fourth quarter beating its July 2021 forecast to end the year with 70-73 million subscribers. In October 2019, at an investor day event, the company was projected to reach 75-90 million subscribers by the end of 2025. However, it achieved that goal almost four years early, noted Kilar.
“To say that this is a remarkable result would be an understatement,” said Kilar. “This performance is beyond what had been our best laid plans at the start of 2021.”
After the service launched in the US in 2020, it was launched in 45 more countries in 2021. HBO Max is expected to arrive in India in 2022. HBO Max is distributed as an app across devices such as Apple TV, Amazon Firestick, Google Chromecast, Roku and a host of smart TVs. WarnerMedia has also launched an ad-supported version of HBO Max which offers the service to consumers at a lower price.
At the beginning of 2021, the company had taken the controversial decision to release its slate of films under Warner Bros. Pictures simultaneously in theatres and HBO Max ignoring the theatrical window completely. This meant that the movie studio’s 18 films were available on the streaming service at the same time as their theatrical release. “We took a thoughtful risk (and some understandable heat), and it has worked,” remarked Kilar.
Impressive content launches by the company include ‘Judas and the Black Messiah’, ‘Mare of Easttown’, ‘Friends Reunion’, ‘The White Lotus’, ‘The Suicide Squad’, ‘Dune’, ‘Succession’, ‘The Matrix Resurrections’ and ‘Return of Hogwarts’.
The service also launched its live sports offering by picking up the rights to UEFA Champions League in Brazil and Mexico.
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.
