iWorld
Netflix and chill but pay more now
MUMBAI: Netflix has made Black Friday a dark day for its subscribers. The content company has increased prices for its standard and premium subscription packages. On 24 November, in an email sent to its subscribers, Netflix communicated that the increase in the membership cost will bring about an addition in content.
The company’s email read: “The cost of your membership will increase to $10.99/$13.99. So we can add more of what you like to watch. Awesome entertainment built around you is what we’re all about. We have enhanced our features so you can download your favourites and watch without wifi, too.”
The standard package, which allows subscribers to watch on two screens at once, will be bumped up from $9.99 to $10.99 per month. The premium package, which lets users watch 4K video on four different devices, will go up from $11.99 to $13.99. The basic $7.99 per month plan will remain the same for US subscribers.
For the UK, the price for the standard plan is going up from £7.49 to £7.99 per month. Moreover, the price of the most premium plan is going up from £8.99 per month to £9.99. The price of the cheapest plan, however, will remain the same at £5.99 per month.
According to Netflix director communication Thomas Cherian, the price hike is not applicable for Indian subscribers because the market is nascent and it wants to build its presence. So, Indians can relax and ‘Netflix and chill’ at the same rates.
But, Twitter was inundated with tweets by various subscribers outside India, taking to the platform to make their displeasure vocal. Announcing the price hike with an email notification has been considered a bold move by a few of the Twitterati and smart because it gets a place to hide amongst other emails.
Twitter links:
https://twitter.com/bangordad/status/934058041460346881
https://twitter.com/mxjrdn/status/934064057463734278
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.
