Bell Media's Buy Out

October 27, 2023

The Weekly Snapshot

“If people are doubting how far you can go, go so far that you can’t hear them anymore.” -Michele Ruiz

Good morning. In this weekly snapshot:

  • Market Updates📈💵

  • Canada’s Biggest Media Conglomerate Gets Bigger💸🤝

  • GOP's Leadership Struggle Settled: The House Speaker Nomination Saga🇺🇸👨‍⚖️

📈 Market Updates

Economic Pulse🌎:

As the third quarter ends, earning reports are rolling in. Meta reported 23 percent revenue growth year over year in the third quarter. With the recent release of the Meta Quest three, Meta hopes to end their self-proclaimed' year of efficiency' on a solid note. Among other news, Morgan Stanley has selected Ted Pick to succeed James Gorman as the new CEO starting in 2024. Ted has been with the company for 33 years since 1990 and is currently the co-president of Morgan Stanley.

Money Moves📈:

Oil giant Chevron has acquired Hess for $53 billion in an all-stock transaction. This deal comes two weeks after Chevron's competitor Exxon purchased Pioneer Natural Resources. Chevron's new firepower is expected to increase total production by 10%. In the pharmaceutical industry, Roche has agreed to buy Telavant Holdings for $7.1 billion. Tevalant is known for its products that treat anti-inflammatory diseases. Roche said that Tevalant is also in the works of developing a new therapy for Crohn's disease.

💸🤝Canada’s Biggest Media Conglomerate Gets Bigger

On Monday, Bell Media announced a tentative $410-million deal to buy the Canadian operations of outdoor advertising company Outfront Media in a move that solidifies its hold on the out-of-home advertising market.

The More the Merrier

Outfront’s Chairman and CEO, Jeremy Male, cited additional flexibility to focus on U.S. assets as a key motivator for facilitating the deal. Expected to close in 2024, the acquisition would see Bell take over Outfront Media's 9,325 advertising displays in Canada, akin to Bell’s previous purchase of Astral Media for $3.2 billion. While Outfront extends Bell’s 45,000 advertising displays that are part of the Astral brand, Outfront’s portfolio is more geographically diverse than that of Astral, which could satisfy any competition concerns surrounding the deal.

Positioned “Out-front”

Bell’s share of the $622-million out-of-home advertising market in Canada is estimated to increase from around 20 to 35 percent. Bell emerges as the dominant player within a small advertising market segment with the option to pursue cross-media advertising opportunities. However, through this acquisition, the telecommunications company is also primed to explore 5G infrastructure, which consists of thousands of small antennas placed in relatively close proximity to one another throughout key site locations such as street furniture and buildings. By also taking control of service areas across Canada essential to 5G, Bell is continuing to build an empire against mobile wireless competition.

🇺🇸👨‍⚖️GOP's Leadership Struggle Settled: The House Speaker Nomination Saga  

House Speaker Mike Johnson

In the corridors of Capitol Hill, the political atmosphere is charged. The Republican party, armed with its 221-seat majority in the House, has been in a whirlwind of decisions and debates. The scene? A series of nominations was overshadowed by Jim Jordan's unsuccessful attempts and Kevin McCarthy's surprising departure.

The Nomination Dance

While Tom Emmer's name echoed in the hallways, it's Mike Johnson, known for his ties to Trump and his notable role in trying to overturn the 2020 election results, who has taken center stage in the GOP's leadership ballet. His election raises eyebrows and questions about the party's evolving political narrative and its future course. But what's the story behind the curtain?

GOP’s Internal Theater

Peel back the layers, and the GOP reveals a mosaic of factions, each championing its unique agenda. The lingering question on everyone's mind: Does the spectre of Trump still cast a shadow over the Republican party's decisions and direction? The party's final choice doesn't just dictate its legislative playbook but also sets the tone for bipartisan collaborations and the nation's political trajectory.

With Mike Johnson holding the reins, the GOP embarks on a new chapter. As the dust settles on this leadership saga and with the presidential elections on the horizon, political pundits and spectators alike are keenly watching the Republicans, speculating on their next strategic move in the grand theatre of American politics.

🗣 Word on the Street

Senior Editor: Amyn Dehal

Was this forwarded to you? Sign up here.