Week 51 in Telecoms, Internet, Media

CORPORATE

• Orange BE:
• Agrees acquisition of VOO (75% minus 1 share) with Nethys based on EUR 1.8b EV to be financed through intra-group loan (= 9.5x EBITDA or 6.5x post synergies [ie EBITDA grows from EUR 190 to 275m ie synergies 85m EUR/annum]), synergies mainly from transfering VOO MVNO to Orange
• commits to developing WBCC ( VOO's call centre), strengthen BeTV
• Nethys retains minority stake & governance rights to guarantee implementation of industrial & social project; Orange offers Nethys possibility to convert its stake in VOO into Orange BE shares
• to close 2022
• United Internet: Ralph Dommermuth expands stake by 15.2m shares (7.84%), total stake to 50.10%; will not make tender offer for further 17m shares
• Polsat Plus Group
• Strategy update:
• plans expansion into clean energy (sun, wind, biomass, building a complete value chain of a hydrogen-based economy, possibly small modular reactors (nuclear fission)) as pillar #3 besides connectivity & content
• talks with ZE PAK (to acquire assets used for electric energy production based on low & zero-emission technologies) and Elektrim, Embud 2, others (to acquire real estate assets)
• To acquire 67% of PAK Polska Czysta Energia from ZE PAK (Zygmunt Solorz 66%) for PLN 800m + PLN 355m debt and 66.94% of Port Praski (Embud) for PLN 879m less net cash PLN 167m
• plans clean energy investments PLN 5.5b 2022-26 (PLN 5b for 1 GW green power by 2026; PLN 0.5b for hydrogen-based economy chain), div pay-outs 2022-24 >= 3 PLN/share (1 PLN/annum over 2021, 2022, 2023)
• "Our goal is to effectively build revenue from the sale of products, services and commodities to our customers.", cross-selling, "Our goal is to maintain our audience share at a stable level and consistently enhance our viewer profile. (...) The second crucial element in building the segment's value is the widest possible distribution of produced and purchased TV content, both in terms of the customer groups it reaches (FTA, pay TV and online access) and the technologies they use (terrestrial, satellite, Internet, mobile)"
• To acquire 32,005,866 shares from Embud 2, max 35 PLN/share
• Moody's places Ba1 under review for downgrade over relaxed financial policy for investments [see 211220]
• Apple: Moody's raises rating to Aaa, outlook stable on exceptional liquidity, robust earnings, very strong business profile    
• Micorosoft Acquires Xandr (ad unit of WarnerMedia) from AT&T 
• Oracle offer for Cerner (medical records): 95 $/share cash = $28.3b (equity value)

Networks & wholesale

• Irish DECC NBP update Winter 2021
• BIPT first report on fixed & mobile coverage in BE (Kwalitatieve studie van vaste en mobiele breedbandnetwerken in België)
• Open Dutch Fiber plans roll-out in Den Haag (areas Transvaalkwartier, Rustenburg, Oostbroek, Groente-en Fruitmarkt, Leyenburg, Moerwijk), 28k premises, start early 2022, activation from April 2022, finish end 2022 [plan # 12, city #11, total 333k premises]
• Vodafone UK considers #3 FTTP network provider (besides CityFibre & BT Openreach) for London & rural within 18 mo
• BAI Communications (shared neutral host network (4G/5G and WiFi) in London Underground) signs 3 UK & EE (BT) as customers

Television/Video, connected car

• GCI (MSO Alaska) delays traditional cable TV service [DVB-C] sunset, replaced by Yukon TV streaming service [IPTV]
• Telenet: Extends leasing contract for Horizon 4 platform & Horizon Go app with Liberty Global Technology Services for 1 yr until 221231, total cost EUR 20.4m
• EC approves WarnerMedia-Discovery merger (unconditional)
• ViacomCBS: BET+ plans to add AVOD tier
• Ampere Analytics report on number of originals release per quarter: 21Q4 record quarter with 143
• Politico article on connected cars:
• Apple (CarPlay, Project Titan (Apple Car))
• Google (Android Auto, Google Automotive Services (GAS), Waymo; partnership with Ford, GM, Stellantis (Chrysler, RAM, Jeep, Plymouth), Volvo, Hinda, Renault-Nissan-Mitsubishi Alliance)
• Amazon (Alexa Auto, Echo Auto (speaker), Zoox (autonomous taxis), Rivian (stake; exclusive right to vans for 4 yr); partnerships with GM, BMW, Audi, Jeep, Landrover) 

Regulatory

• ACM delays local access market analysis to 22Q1 (March)
• EC opens investigation of CTU (CZ) plan for ex-ante regulation based on joint dominance of MNOs
• Apple: ACM (NL) orders App Store conditions adjustments for dating apps over violating competition rules (to allow free choice of payment system for in-app purchases)