Has Canal+ won already? The answer is yes. (#573)

Disney results:

Last week's big story was about tech, starting with Disney, a stock recommended here back in September at ±$80.

• Key financials: Linear networks revenue up 9%, Direct-to-consumer up 12%, Parks up 16%
• Direct-to-consumer still incurred a loss of $400 million
• Consumer products, content sales licensing, and ESPN performance discussed
• Overall, not a knockout result but not terrible; I remain a satisfied shareholder

Big move in streaming sports! ⚾️🏀🏈

Disney, Warner Bros., and Fox are joining forces to create the ultimate sports streaming app, merging ESPN, TNT, and Fox Sports (WSJ).

ESPN alone was 18% of Disney's latest quarter revenue.$DIS $FOX $WBD pic.twitter.com/xSPBko0cMO

— App Economy Insights (@EconomyApp) February 6, 2024

Meta (formerly Facebook) Earnings:

• Advertising revenue up 24% year on year to 38.7 billion
• Other segments discussed, including Reality Labs (MetaQuest)
• Net profit $14 billion, up 35%; stock surged 20%
• Mark Zuckerberg's dividend income from the declared 50-cent dividend discussed
• Positive sentiments about Meta's performance, particularly in comparison to other tech giants

Canal+ Offer for MultiChoice:

• Canal+ made an offer for MultiChoice at 105 Rand per share
• Market reaction, initial excitement, and stock movement
• Simon's caution about potential risks and timing of the deal
• MultiChoice's response: Board concluded the offer significantly undervalues the group
• Canal+ continued to buy MultiChoice shares, now owning 35.1%
• Discussion on the mandatory offer threshold and potential scenarios
• Regulatory considerations: Foreign ownership rules and competition commissions
  • The price of the mandatory offer must be equal to;
    (i) identical to, or where appropriate, similar to the highest consideration paid by the bidder for those acquisitions and
    (ii) accompanied by a cash consideration, at not less than the highest cash consideration paid if the shares that carry 5% or more of the voting rights were acquired for cash.
• Simon's conclusion: Canal+ likely to succeed, potential challenges, and market dynamics

Simon Brown