Will Apple, Disney or Netflix pursue an acquisition of NewCo? Last year we wrote that AT&T should sell WarnerMedia. On Monday AT&T (tkr: T) led by John Stankey agreed to spin-off its WarnerMedia asset and to combine it with John Malone's Discovery (tkr: DISCA) in a new, publicly-traded company led by Discovery CEO David Zaslav. … Continue reading AT&T Took Our Advice But It Does Not Solve The Scale Problem
As we wrote in September of last year, Netflix (tkr: NFLX), Should Acquire Video Game Publishers. Netflix teased a video game strategy on tonight's earnings call. Disney (tkr: DIS), proved the model on the feature film side with acquisitions of Pixar, Marvel and Lucasfilm. The video game space will prove no different. After all, hit … Continue reading Netflix & Video Games Can’t Happen Soon Enough
We migrated off of AT&T's (tkr: T) mobile plan over the weekend in favor of Alphabet's (tkr: GOOGL), Google Fi mobile phone service. Google Fi charges less for unlimited calls and texts: Google Fi charges $20 for unlimited calls and texts per user per month vs. $25 for AT&T; Google Fi charges less per GB … Continue reading AT&T Is Caught In A Pickle. Google Is Benefitting.
Disney recently refined its segment reporting into two major categories: "Media and Entertainment Distribution" and "Parks, Experiences and Products" detailed in this filing. We have advocated for a separation of Parks from Media, most recently in March 2020. The requisite leadership is in place to manage two separately-traded public companies post-spin. Disney's Parks, Experiences and … Continue reading Disney Getting Closer To Spinning Parks from Media?
A Big Tech vs. Big Government showdown is far less likely than a marriage of the titans. Whether it be Google's search monopoly, the Facebook/ Twitter/ TikTok social media oligopoly, the AWS/ Azure/ GCP oligopoly, the App Store/ Google Play duopoly, or the iOS/Android duopoly, the amount of power and influence concentrated among the world's … Continue reading The Marriage of Big Tech and Big Government
YouTube is virtually the same size as Netflix from a Revenue standpoint. Netflix will finish 2020 with Revenue of approximately $25 billion. YouTube will finish 2020 with combined Ad Revenue and Subscription Revenue of approximately $22-23 billion. The two operations share similar revenue growth rates. Thus, if Netflix is worth $227 billion, what is YouTube … Continue reading YouTube vs. Netflix
AWS, Azure and GCP are to thank in large part for the proliferation of applications powered by broadly-defined AI. The big three remote server platforms have made it increasingly easy for companies of all sizes from all industries to build applications that incorporate core AI, machine learning, deep learning and related capabilities. A wide variety … Continue reading Artificial Intelligence Is Electricity 2.0
A WarnerMedia sale is not likely to happen before Q4 2021. A WarnerMedia sale is likely to occur, but not before calendar Q4 2021. The WarnerMedia business unit is a significant drag on AT&T's (tkr: T) ability to invest in its core, capital intensive, distribution/data/fiber business. Disney (tkr: DIS) is the natural buyer. Apple (tkr: … Continue reading Don’t Expect AT&T to Sell WarnerMedia In The Near-Term
Netflix should acquire video game companies to better compete with the wide variety of alternatives available to its customer base. Investors often mistakenly define Netflix's business too narrowly. Netflix is in the broadly-defined "entertainment" business and therefore competes for viewers' attention. Netflix competitors include traditional television, streaming services (video, music, video games), social media, reading … Continue reading Netflix Should Acquire Video Game Companies
WarnerMedia ("WM") and AT&T (tkr: T), leadership teams should take note. WM/AT&T completely botched its summer movie release schedule, failing to adapt to the post-COVID reality. The company took the "wait-and-see" approach rather than controlling that which it could. The result? Market share lost to Netflix and DisneyPlus. WarnerMedia's summer tentpole film - Tenet - … Continue reading Muscles, Viruses, Nature and People Adapt. So Do The Best Leadership Teams.