NEWS 28

Deal or no deal, Yahoo is just the start for the Daily Mail's US push

SUMMARY:

News that the Daily Mail is considering getting involved in an acquisition of Yahoohas sparked a flurry of interest, but what would an almost 180-year-old media company want with an internet giant past its prime? First, it is important to understand that a deal would not mean an outright acquisition of Yahoo by DMGT, the Mail’s owner. DMGT is a successful media business incorporating far more than just the Daily Mail in print and online, but its finances do not make an outright buyout feasible, even if Yahoo comes at a knockdown price. As analysts Peel Hunt put it in a note on Wednesday, DMGT is £700m in debt and a pension deficit means “there is only modest firepower for such a deal” without selling other assets or raising more debt, both of which “seem unlikely”.

FACTS:

• The other reason a deal makes sense is that while sites such as Yahoo Sport and News would be of limited interest to a private equity firm looking for a quick return, they would fit the Mail’s focus on digital news.

• “Online news is the tricky business to go into,” says Caldecott. “It’s not something a private equity group would be particularly interested in. But obviously for the Mail, which is in online news, it makes sense to acquire those properties in the context of its growth strategy.”

YouTubers hit mainstream as digital media become top choice for new talent

SUMMARY:

The 2015 film Joe and Caspar Hit the Road was made with the production team from Top Gear, and after topping the sales charts as a DVD and digital download, will now air on Channel 4’s E4 TV network in April. A sequel featuring another road trip to the US is lined up for November.

For Sugg – the brother of YouTube star Zoe “Zoella” Sugg – and Lee, “straight to DVD/download” isn’t a failure, as it is for traditional films. It’s a canny and increasingly common career move for YouTubers, with other examples includingSmosh: The Movie (by comedy duo Smosh); Camp Takota (with Grace Helbig, Hannah Hart and Mamrie Hart) and The Chosen (with Kian Lawley).

FACTS:

• The industry around this phenomenon is growing rapidly, from talent agencies like Gleam to multi-channel networks (MCNs) like BroadbandTV, Maker Studios and Fullscreen that sign up YouTubers and devise new shows and commercial deals for them.

• Meanwhile, digital studios like Vice Media and New Form Digital are making shows and films that attract large audiences online – but which can also transfer to television.