It took five years, but Rupert Murdoch has finally acquired the rest of the UK-based Sky Network. Murdoch is the Australian-American media mogul billionaire owner of 21st Century Fox, who tried, but failed a complete buyout of Sky in 2011. Now he is getting the 61 percent that he didn’t already own for almost $15 billion, $13.52 per share. The price is a 36 percent increase over the closing price of the stock on December 8. Fox projects that it will be able to close the deal for $14.6 billion before the end of 2017.
The sale was scrapped in 2011 due to News Corp.’s phone hacking and alleged bribery scandal. Because of this summer’s Brexit decision, the value of the pound dived, making the price of Sky’s shares a relative bargain.
“We have been thoughtful, disciplined and focused as we have contemplated the best use of our capital to drive the growth of the business into the future,” said Lachlan Murdoch, 21st Century Fox’s executive chairman.
The deal with Sky is Fox’s largest transaction to date. Sky will add value to Fox by providing its own programming, library to sports broadcasting rights, and more during a time when large telecom and content providers are consolidating.
“All in all, even taking into account the sports cost issue, this is probably a better and more durable business than most US. investors would presume,” said Michael Nathanson, of MoffettNathanson Research, who lowered its rating on Fox shares to Neutral from Buy and increased the target price $2 to $32.
Rupert Murdoch owns 21st Century Fox with his sons James and Lachlan, including Fox TV network, Fox News and Hollywood study 20th Century Fox.
Along with the huge rise in the commercial use of drones has come the need to regulate this activity. Such laws are about to emerge which will clear the way for a regulated business-related drone flight everywhere in the US, hopefully bringing some order to what some have considered chaos.
The FAA announced its first set of laws which will permit anyone to use drones, as long as they follow the steps and meet the requirements. The first of those will be the acquisition of a remote pilot’s certificate, which can be had by sitting for a written test at an FAA testing center.
Once you’ve received your license to fly, you will need to make sure your drone is under the 55 lb. (25 kg) limit. This covers the vast majority of drones generally in use.
The new rules also limit the maximum altitude an operator can send their drone to under 400 ft. (122 m). Speeds must also be kept under 100 mph (161 kmh) and must always be within seeing distance of the pilot. No night flying with the exception of 30 minutes before sunrise and after sunset, but only if your drone is fitted with anti-collision lights. One pilot-one drone: a single operator cannot fly more than one drone at a time, and a drone is never allowed to fly over the heads of people.
The FAA says it is willing to be lenient on some of the rules if the operator can demonstrate that safety will not be compromised. A special on-line portal will be set up for pilots to make their cases for special waivers.
This is a step towards the future of retail drone delivery, but as Matt Sweeney, whose startup Flirtey carried out the first FAA-approved drone delivery exercise last year explains:
“This is to some extent broader than some people in the industry were expecting. But as currently written, you can still not fly over people, you can still not fly beyond the line of sight and you cannot operate more than one drone at a time. And those are really the three key things that are required for the drone delivery industry to emerge at scale.”
For those going out into the business world for the first time, getting tips from those who have already made it is a good way to start. Businessmen who have graduated and made it in the business world can enlighten students on how to avoid real-world pitfalls.
One example of this was the recent Alumni Meet which took place at MIET – the Model Institute of Engineering and Technology. At this event more than 75 alumni from all multi-national business industries participated. In addition, some alumni received one of the ‘Distinguished Alumni Awards’ as a recognition of how they have “set benchmarks in professional achievement.”
James Donovan, Goldman Sachs Managing Director and an Adjunct Professor at the University of Virginia School of Law, has similarly been involved in using his alumnus status to impart wisdom on the management and cultivation of client relationships.
“Covering clients is a learned skill. It is not an innate skill,” he recently pointed out in a lecture he gave at the Virginia School of Law. He said that it is not something that people are born with; it is something that can be learned…. “if you are willing to learn them.” The way you do this, Donovan suggested to those studying at the institution, is to “find somebody at the firm you work…find someone who’s really good at bringing in business, at covering clients, and learn as much as you can from that person. Be an open book, put your ego aside.”
Another helpful way for alumni to get ahead in the business world is by alumni networking. This was what Princeton University did last month, inviting Asian and Asian American alumni from around the world gathered to “celebrate their significance to the Princeton community.” The ‘We Flourish’ conference did more than that. Over 700 alumni gathered together to network, hear lectures and engage in discussions at the conference that was organized by the Office of the Alumni Affairs and the Association of Asian American Alumni of Princeton. One particularly notable discussion took place between the Chairman of Hopewell Holdings Ltd., Sir Gordon Wu, and Pulitzer-prize winning journalist and author, Sheryl WuDunn, about business philosophy, philanthropy and their days at Princeton.
For those who have just graduated – and even others who are making their way in the business world and would like to hear from those who have already made it – alumni gatherings are not only helpful, but are also often extremely enjoyable as these three examples above indicate.
Despite efforts to reduce the levels of ozone in the US, overall reduction has been stymied by the arrival of pollution across the Pacific Ocean from China.
A new study conducted by six researchers at US and Dutch universities shows that ozone concentrations in the air over China has gone up 7 percent between 2005 and 2010, and that this increased level of ozone is traveling through the air all the way from China to the western United States, off-setting the significant reduction in production in ozone levels there.
The US has put into place public policy to reduce emissions which are pre-cursers to the formation of ozone, such as nitrogen oxides. On the West Coast of the US that reduction in production amounted to about 20 percent. Yet the overall air quality, especially in ozone concentrations, did not improve.
Lead researcher from the Wageningen University in the Netherlands, Willem Verstraeten, said that the worsening air pollution in Asia could be the reason the US is not seeing the kind of ozone reduction it should.
Verstraeten theorized that the “dominant westerly winds blew this air pollution straight across to the United States. As a manner of speaking, China is exporting its air pollution to the West Coast of America.”
Despite the importance and influence social media sites have had on the way we journey through the world, as businesses, they are almost universally failures.
Yelp was founded in 2004, and went public in 2012, boosted by the millions of people who were using the site to rate local businesses and read those ratings. Prior to the IPO the company raised $56 million in venture capital investments. The IPO brought in an additional $107 million. Still not able to switch to black ink after all this time, a secondary stock offering raised $250 million. Yet, profitability remained an elusive dream.
Before we judge Yelp to harshly, this is a good moment to point out that profitability for social media sites is the exception and not the rule. Today there are only two such online platforms that can be said to make money rather than lose it. Those two are Facebook, which took years to reach profit-making status, and LinkedIn, which has a paid pro subscription, making it less dependent on advertising. You will be looking long and hard to find another social media company that is in this exclusive club. Not YouTube. Not Twitter. And not Yelp.
Now Yelp is looking for a buyer. But its prospects are not good. This is a quote from the company’s annual report:
“We expect that our revenue growth rate will decline as a result of a variety of factors, including the maturation of our business and the gradual decline in the number of major geographic markets, especially within the United States, to which we have not already expanded.”
Over its lifetime Yelp has raised a total of about $400 million from investors. The company has a market value of $3.51 billion, and in 2014 they did manage to eke out a profit for the first time in their history. Over its lifetime, however, Yelp has reported a total of $34 million in losses.
Who will buy this company is yet to be seen. If they do, it will be not as a source of income, at least not soon, but as a way to provide this service to its otherwise loyal customers.