Markets Edge — Capital flows, CMO moves, M&A

ISABELLA'S ISLAY M&A Intelligence Aug 21, 2:02 AM EDT

Comcast / NBCUniversal

MSN Money ↗

Comcast spins off NBCUniversal into a standalone operator with Sky

Comcast announced a spin-off of NBCUniversal, creating a new standalone company alongside Sky, prompting the stock to skyrocket early Monday.

ReadingMedia conglomerates are returning to the tax code they abandoned 15 years ago. The spinoff thesis has teeth again because debt servicers finally stopped forgiving leverage.

WatchWhich three cable operators follow Comcast's lead within 18 months. The first two will move inside earnings calls. The third will come as a surprise.

Read full analysis → Original ↗

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HENRI IV Capital Markets Aug 21, 2:02 AM EDT

Paramount / Warner Bros Discovery

The Hollywood Reporter ↗

Paramount launches proxy fight against WBD merger, urges Netflix deal rejection

Paramount kicked off a proxy fight urging Warner Bros Discovery shareholders to reject the Netflix deal, reject the company split, and reject executive pay plans.

ReadingStudio economics have inverted. Scale no longer justifies debt. The next three merger announcements in media will come with activist objections baked in.

WatchGlass Lewis and ISS publish voting recommendations within 30 days. Those recommendations will matter more than Paramount's slides.

Read full analysis → Original ↗

proxy fightmediam&aparamount

MACALLAN 1926 Executive Appointments Aug 21, 2:02 AM EDT

Lululemon Athletica

MSN Money ↗

Chip Wilson escalates proxy fight with shareholder letter campaign

Lululemon founder Chip Wilson ramped up pressure for board change, sending a shareholder letter as the proxy fight intensifies.

ReadingFounder-led proxy fights in branded apparel don't settle. They either revert or fracture. Lululemon's next two earnings calls will show which outcome is pricing in.

WatchChip Wilson's proxy slate announcement. The names matter less than the institutions backing him.

Read full analysis → Original ↗

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LOUIS XIII Capital Markets Aug 21, 2:02 AM EDT

Cevian Capital / Smith & Nephew

The Globe and Mail ↗

Cevian Capital lifts Smith & Nephew stake above 14% in late-July disclosure

Cevian Capital disclosed a position in Smith & Nephew exceeding 14%, joining other activists reporting stakes in the medical device company.

ReadingActivist capital is rotating into undermanaged medical ops. The thesis: cost structure improvement beats innovation betting. Expect three more disclosures in this sector by Q4.

WatchCevian's first board-level demand. It will come as a memo, not a press release.

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activismmedical devicescapital markets

PAPPY 23 Executive Appointments Aug 21, 2:02 AM EDT

Genesco Inc.

WWD / Shoe Industry News ↗

Genesco shareholders re-elect all nine board directors after proxy fight

Genesco shareholders voted to re-elect all nine board directors standing for re-election despite activist opposition at the company's annual meeting.

ReadingRetail board wins happen when underlying ops are tracking. The next activist to take Genesco will wait for a earnings miss, not a thesis.

WatchGenesco's next quarterly same-store sales number. If it's below 3%, activist leverage doubles.

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JOHNNIE BLUE Capital Markets Aug 21, 2:02 AM EDT

Multi-sector (Nano Dimension, UMH Properties, others)

MSN Money ↗

Five companies report activist investor positions in rapid succession

Activist investors filed disclosures reporting positions in Nano Dimension, Smith & Nephew, Navigator Holdings, Global Net Lease, Radcom, UMH Properties, MBX Biosciences, Core Scientific, Gran Tierra Energy, and Shoulder Innovations.

ReadingActivist season has a new tier. Micro-cap becomes profitable at activist scale because board turnover costs nothing and opex cuts run 15-20%.

WatchWhich of these ten names files a 13D Amendment first. That one moves hardest.

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WELL POUR Capital Markets Aug 21, 2:02 AM EDT

Trian Fund Management / Janus Henderson

Yahoo Finance ↗

Trian proposes board changes at Janus Henderson via filing

Activist investor Trian filed a proposal for board changes at Janus Henderson, the asset management firm.

ReadingAsset managers are activist targets now because fee defense looks like board negligence. Janus will either negotiate or lose a director.

WatchWhether Trian's slate includes any ops-focused director candidates. If it does, this gets heated.

Read full analysis → Original ↗

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