iWorld
India: 40 per cent smartphone users stream live videos; leads in new subs
MUMBAI: There is a rise of 5G networks and consumers subscribing to the network. By 2022, there will be a growth in mobile broadband to 6.1 billion unique subscribers. Forecasting the trends in telecom sector across the world, Ericsson Mobility Report has pointed out that approximately half a billion users will be connected to 5G networks by 2022.
North America (NA) will dominate the industry with nearly 25 per cent of 5G subscriptions in 2022. Asia Pacific will fall next with about 10 per cent of the share.
The Middle East and Africa will shift from predominantly GSM/EDGE only to approximately 80 percent of users being connected to WCDMA/HSPA and LTE. The report further points out that the mobile subscriber base is estimated to scale 6.8 billion with over 95 per cent people being connected to 4G or 5G networks.
Ericsson chief strategy officer and technology officer Ulf Ewaldsson opined that almost 90 per cent of smartphone subscriptions are on 3G and 4G networks today, and standardised 5G networks are expected to be available in 2020. He further added that 5G would help automation, IoT and big data.
The world added 84 million new mobile subscriptions during the third quarter of 2016 with India leading regarding net additions with 15 million, with China closely following with 14 million new mobile subscribers.
The report points out that the mobile video traffic will grow 50 per cent every year through 2022, accounting for about 75 per cent of all the mobile data traffic. Social media traffic will be the second type of traffic that will dominate the mobile traffic growing 39 per cent each year.
As for as live streaming is concerned, two in every five smartphone users are interested in live streaming apps in India and other high-growth countries like Brazil, Indonesia and Oman. The reports suggest that the figure dropping to one in every five smartphone users in the United States of America.
Along with 5G and Mobile Broadband, IoT will also see significant growth, with approximately 29 billion devices connected to the internet, out of which 18 billion of the devices relating to IoT.
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.
