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Airlines are exploring the “all you can fly” deal

More carriers are trying out the subscription model

In recent years, one of the ways that convenience has been redefined for consumers, often unprompted, is the ubiquity of subscriptions.

Indeed, while streaming services and digital publications have long touted membership models, today, everything from pet food, to mattresses, to (briefly) heated car seats, to even a bimonthly box of doomsday supplies are peddled through an increasingly present “subscribe” button at checkout.

Now, airlines are continuing to explore the idea. Wizz Air, the Hungarian low-cost carrier, is the latest to offer an “all you can fly” deal, with an annual charge of €499 ($549) for a limited time — following a similar deal from US-based Frontier Airlines announced last year, which was met with criticism.

Perhaps for Wizz Air, though, this kind of offering will put some wind beneath its wings, as the company grapples with some disappointing results. Despite total revenue crossing more than $5 billion in FY24 — with passenger ticket revenues recovering from a post-pandemic downturn — its most recent quarter saw a 44% decline in operating profit and the stock is down more than 40% so far in 2024.

Wizz Air makes nearly 45% of its revenue from what it calls “ancillary revenue”, which is a fairly long list of add-ons that people don’t usually enjoy paying for, including baggage charges, check-in fees, convenience services (e.g. priority boarding, reserved seats), booking charges, and more.

Interestingly, demand seems to be there for the deal... but it seems that people are already having issues trying to secure Wizz Air's new service, per the BBC.

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Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority-cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming & studios, the other for its traditional cable/TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming & studios, the other for its traditional cable/TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

business

Fox and News Corp slide as investors digest $3.3 billion Murdoch succession settlement

Fox and News Corp shares dropped on Tuesday after Rupert Murdoch’s heirs agreed to a $3.3 billion settlement to resolve a long-running succession drama.

Under the deal, Prudence, Elisabeth, and James Murdoch will each receive about $1.1 billion, paid for in part by Fox selling 16.9 million Class B voting shares and News Corp selling 14.2 million shares. The stock sales will raise roughly $1.37 billion on behalf of the three heirs.

The new trust for Lachlan Murdoch will now control about 36.2% of Fox’s Class B shares and roughly 33.1% of News Corp’s stock, granting him uncontested voting authority over both companies for the next 25 years. Originally, the Murdoch trust was designed to hand over voting control of Fox and News Corp to Prudence, Elisabeth, Lachlan, and James after his death.

Investors are weighing the trade-off. Clear leadership under Lachlan may resolve conflict internally, but the share dilution, executed at a roughly 4.5% discount, means long-term investors now hold slightly less clout than before.

Both companies’ stocks were trading close to all-time highs prior to the announcement.

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