As DOJ nears deal approval, T-Mobile bets Sprint merger is worth giving Dish a new lease on life

T-Mobile and Sprint have decided they are pot committed on their merger, a deal that’s been in the works for years. A deal could be announced as soon as Wednesday, according to people familiar with the matter. Dish could wind up being a far more frightening competitor than Sprint, which would face massive capital constraints and rapidly fleeing customers without a deal with T-Mobile. But given DOJ pushback for a strong fourth player, the limitations on Dish will be minimal, if anything, accordin


T-Mobile and Sprint have decided they are pot committed on their merger, a deal that’s been in the works for years. A deal could be announced as soon as Wednesday, according to people familiar with the matter. Dish could wind up being a far more frightening competitor than Sprint, which would face massive capital constraints and rapidly fleeing customers without a deal with T-Mobile. But given DOJ pushback for a strong fourth player, the limitations on Dish will be minimal, if anything, accordin
As DOJ nears deal approval, T-Mobile bets Sprint merger is worth giving Dish a new lease on life Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: alex sherman
Keywords: news, cnbc, companies, nears, deal, pot, matter, worth, lease, ergen, doj, player, tmobile, sprint, poker, life, familiar, giving, wireless, merger, dish


As DOJ nears deal approval, T-Mobile bets Sprint merger is worth giving Dish a new lease on life

There’s a term in poker called “pot committed.” It means arriving at a point in time when it no longer makes sense to fold a hand regardless of the circumstances. When you’re pot committed, you’ve decided to bet whatever it takes, and you just hope your opponents don’t have a better hand.

T-Mobile and Sprint have decided they are pot committed on their merger, a deal that’s been in the works for years. Their transaction, which would form a combined company with an enterprise value of about $160 billion, requires both companies reach an agreement with the Department of Justice about creating a new fourth wireless competitor. A deal could be announced as soon as Wednesday, according to people familiar with the matter. CNBC’s David Faber first reported the Department of Justice would sue to block its deal if an agreement with regulators wasn’t reached this week. The New York Post reported last week a deal was imminent.

That new wireless competitor will be Dish Network, one of the largest U.S. providers of video. Dish has wanted to become a wireless provider for about a decade, spending billions on airwaves that it has been storing for years. Unfortunately for T-Mobile, arguably the worst person the company could be running up against in this situation is Dish CEO and co-founder Charlie Ergen, a famed poker player who is notorious for keeping his cards close to the vest.

Here’s what Ergen said at his first-quarter earnings conference call way back in 2014:

“When I used to play poker and everybody was throwing chips and betting crazy on the table, and I had really good cards, I always felt it was better to sit back and let them go at it,” Ergen said. “Every time they went at it, I’d learn something, and as I sat back they didn’t learn what I had. And I learned to trust my cards. I wasn’t a very good poker player, but when a bunch of drunken fools were throwing money around, occasionally I was able to pick up a pot at the end of the day.”

In recent days, several telecommunications analysts, including Craig Moffett at MoffettNathanson and Jonathan Chaplin at New Street Research, have questioned if a merger that strengthens Dish as a disruptive fourth wireless player is worth it for T-Mobile. Dish could wind up being a far more frightening competitor than Sprint, which would face massive capital constraints and rapidly fleeing customers without a deal with T-Mobile.

Deutsche Telekom, the German telecommunications company that will control the combined Sprint and T-Mobile, is concerned about Ergen’s plans, according to people familiar with the matter. That’s why Deutsche Telekom has spent the last several weeks arguing for limitations on Dish’s ability to sell a percentage of its wireless business to a strategic investor, such as Amazon, Google or a cable operator such as Comcast or Charter.

Spokespeople for Dish, Deutsche Telekom and SoftBank (Sprint’s majority owner) declined to comment.

But given DOJ pushback for a strong fourth player, the limitations on Dish will be minimal, if anything, according to people familiar with the matter. Dish will likely be free to sell an equity stake in its wireless business to whomever it sees fit, meaning that Ergen may have a partner with an enormous balance sheet in a year or two. The extra capital will help Ergen build out a 5G wireless network as its network-sharing agreement with T-Mobile, which people familiar with the matter have said lasts six or seven years, winds down.

Dish will also be immediately incentivized to offer cheaper services than T-Mobile (as well as AT&T and Verizon) to gain subscribers, Moffett wrote. Since Dish will be starting with no subscribers and no average revenue per user to grow for investors, Dish will be in full customer addition mode. This was actually T-Mobile’s strategy for years, undercutting AT&T and Verizon on price and charges for going over data limits after failing to sell to AT&T in 2011.

“If Dish enters the market with a large amount of capacity and no meaningful subscriber base of [average revenue per user] to defend, they would have every incentive in the world to be a disruptive discounter,” Moffett wrote in a note to clients late last week. “One need not believe in a follow-on Dish deal with Amazon, Google or a cable operator to see this as bad for the market, and indeed, worse than the ‘no deal’ scenario for T-Mobile.”


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: alex sherman
Keywords: news, cnbc, companies, nears, deal, pot, matter, worth, lease, ergen, doj, player, tmobile, sprint, poker, life, familiar, giving, wireless, merger, dish


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Equifax CEO says company still faces cyberattacks every day

Equifax CEO Mark Begor told CNBC on Monday that cyberattacks are the greatest threat facing businesses and governments around the world, and that his company is constantly under attack. “Companies are attacked every day, and you and I see announcements every week of cyberattacks,” Begor said on “Closing Bell. ” Federal regulators announced a settlement of up to $700 million with Equifax on Monday for a 2017 data breach that impacted more than 140 million people. As part of the settlement, Equifa


Equifax CEO Mark Begor told CNBC on Monday that cyberattacks are the greatest threat facing businesses and governments around the world, and that his company is constantly under attack. “Companies are attacked every day, and you and I see announcements every week of cyberattacks,” Begor said on “Closing Bell. ” Federal regulators announced a settlement of up to $700 million with Equifax on Monday for a 2017 data breach that impacted more than 140 million people. As part of the settlement, Equifa
Equifax CEO says company still faces cyberattacks every day Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: jesse pound, alex sherman
Keywords: news, cnbc, companies, ceo, data, faces, begor, security, equifax, attacked, war, company, regulators, million, day, really, settlement, cyberattacks


Equifax CEO says company still faces cyberattacks every day

Equifax CEO Mark Begor told CNBC on Monday that cyberattacks are the greatest threat facing businesses and governments around the world, and that his company is constantly under attack.

“Companies are attacked every day, and you and I see announcements every week of cyberattacks,” Begor said on “Closing Bell. ” “It’s a war that, from our perspective, isn’t going to end.”

Federal regulators announced a settlement of up to $700 million with Equifax on Monday for a 2017 data breach that impacted more than 140 million people. The Federal Trade Commission alleged that the credit bureau was slow to patch a flaw in its security system that resulted in hackers being able to steal 145.5 million Social Security numbers, among other sensitive information. As part of the settlement, Equifax has agreed to bolster its security practices and have its policies assessed regularly by a third party.

“We get attacked every day,” Begor said. “And we’re preventing those attacks, but they’re going to continue. And it’s really a war that’s being attacked on every American company.”

Between $300 million and $425 million of the settlement is slated to go to a consumer fund.

“This comprehensive settlement was a priority of ours and is quite unprecedented, to bring so many groups together,” Begor said. “And the second priority of ours and the regulators was a single consumer fund, and it was really a focus on doing the right thing for consumers.”

Equifax will pay $300 million to a third-party claims administrator that will determine how to distribute the money to consumers, Begor said. The company will pay up to $125 million more if claims exceed the initial amount, according to the FTC.

The rest of the settlement will be paid to states and regulators.

Begor, who became CEO after the scandal, said there’s no proof the data breach has had a negative impact on the impacted consumers.

“There’s no evidence to date that any of the data was stolen in September of ’17 has either been sold on the dark web or any increases in identity theft to date,” he said.

— Reuters contributed to this article.


Company: cnbc, Activity: cnbc, Date: 2019-07-22  Authors: jesse pound, alex sherman
Keywords: news, cnbc, companies, ceo, data, faces, begor, security, equifax, attacked, war, company, regulators, million, day, really, settlement, cyberattacks


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Netflix’s latest results and executive comments show it’s just another media company — not a pay-TV killer

As Netflix’s stock soared over the past couple years, investors and consumers wondered how to think of the company’s long-term role in the media ecosystem. This quarter’s results should make it easier to define Netflix, but the answer may not be as ambitious as some had hoped. It’s easy to get wrapped up in Netflix’s grand successes and project aspirations on the company that may be too grandiose. That’s the kind of language you’d hear from someone that works at HBO. It is not the kind of langua


As Netflix’s stock soared over the past couple years, investors and consumers wondered how to think of the company’s long-term role in the media ecosystem. This quarter’s results should make it easier to define Netflix, but the answer may not be as ambitious as some had hoped. It’s easy to get wrapped up in Netflix’s grand successes and project aspirations on the company that may be too grandiose. That’s the kind of language you’d hear from someone that works at HBO. It is not the kind of langua
Netflix’s latest results and executive comments show it’s just another media company — not a pay-TV killer Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: alex sherman
Keywords: news, cnbc, companies, language, executive, latest, media, company, youd, hbo, hear, think, sleep, companys, results, killer, netflixs, netflix, kind, paytv, comments


Netflix's latest results and executive comments show it's just another media company — not a pay-TV killer

As Netflix’s stock soared over the past couple years, investors and consumers wondered how to think of the company’s long-term role in the media ecosystem.

This quarter’s results should make it easier to define Netflix, but the answer may not be as ambitious as some had hoped.

It’s easy to get wrapped up in Netflix’s grand successes and project aspirations on the company that may be too grandiose. After all, Netflix vanquished Blockbuster, its first foe. It zoomed by HBO in global subscribers, its second target. It’s only natural to think about who Netflix may be coming after next — and the company’s own language around competitive landscape fueled those fires. Netflix has listed both sleep and Fortnite as recent competitors.

But listening to Netflix executives speak yesterday after reporting net customer additions that drastically fell short of analyst estimates and the company’s own guidance, there was no talk of sleep and Fortnite.

Instead, the company’s leadership spoke pragmatically about making better shows and movies to draw an audience.

“We’re just going to continue to focus on our strategy of developing more and more original programming,” said Netflix Chief Financial Officer Spencer Neumann. “There will be some quarter-by-quarter choppiness along the way based on things like seasonality and content slate.”

That’s the kind of language you’d hear from someone that works at HBO. It is not the kind of language you’d hear from someone at a cable operator, which historically has offered sweeping society-wide justifications like “college ended” to explain why pay-TV signups fell. Netflix hasn’t attained that level of assumed ubiquity.


Company: cnbc, Activity: cnbc, Date: 2019-07-18  Authors: alex sherman
Keywords: news, cnbc, companies, language, executive, latest, media, company, youd, hbo, hear, think, sleep, companys, results, killer, netflixs, netflix, kind, paytv, comments


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Gene Munster: Netflix’s best days are behind it

Loup Ventures founding partner Gene Munster said CNBC’s “Fast Money” on Wednesday that Netflix’s disappointing second quarter results are a turning point for the company, saying the best days for the streaming giant “are in fact behind it.” The miss came both internationally and domestically, with the company losing more than 100,000 subscribers in the United States. Netflix plunged more than 10% in after-hours trading followings its second quarter earnings report. The streaming video company re


Loup Ventures founding partner Gene Munster said CNBC’s “Fast Money” on Wednesday that Netflix’s disappointing second quarter results are a turning point for the company, saying the best days for the streaming giant “are in fact behind it.” The miss came both internationally and domestically, with the company losing more than 100,000 subscribers in the United States. Netflix plunged more than 10% in after-hours trading followings its second quarter earnings report. The streaming video company re
Gene Munster: Netflix’s best days are behind it Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: jesse pound, alex sherman
Keywords: news, cnbc, companies, gene, subscribers, competition, best, think, company, share, netflixs, days, quarter, united, earnings, streaming, munster


Gene Munster: Netflix's best days are behind it

Loup Ventures founding partner Gene Munster said CNBC’s “Fast Money” on Wednesday that Netflix’s disappointing second quarter results are a turning point for the company, saying the best days for the streaming giant “are in fact behind it.”

The company reported growth of just 2.7 million global subscribers for the quarter, well below analyst estimates of more than 5 million, according to FactSet. The miss came both internationally and domestically, with the company losing more than 100,000 subscribers in the United States.

“This is negative, and I think we’re going to look back at this quarter as one of the pivotal moments in the Netflix story,” Munster said.

Netflix plunged more than 10% in after-hours trading followings its second quarter earnings report. The streaming video company reported 60 cents of earnings per share on $4.92 billion in revenue. Wall Street expected earnings of 56 cents per share on $4.93 billion in revenue, according to Refinitiv.

“The key insight here is that the content lineup that they had in the June quarter just simply didn’t get the job done. We can talk about what’s coming in terms of competition, but ultimately that is the tip of the spear of this story,” Munster said.

Netflix raised its subscription prices in several markets this year and is facing increased competition in the United States. Disney, NBCUniversal, Apple and Warner Media all have plans to launch their own streaming services.

The increased competition means that some of Netflix’s most popular shows, such as “Friends” and “The Office,” will soon no longer be available on the service.

“As much as I love the company, I just think its best days, unfortunately, are in fact behind it,” Munster said.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: jesse pound, alex sherman
Keywords: news, cnbc, companies, gene, subscribers, competition, best, think, company, share, netflixs, days, quarter, united, earnings, streaming, munster


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Netflix just missed hard on the only number that matters — international subscriber growth

Netflix shares are tanking almost 11 percent after-hours following the company’s Q2 earnings report on Wednesday afternoon, but before you get wrapped up in false narratives, understand that Netflix trades on international growth. The reason Netflix shares are falling is because international net additions were 2.8 million. Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt. If Netflix misses by that much — 42 percent — on in


Netflix shares are tanking almost 11 percent after-hours following the company’s Q2 earnings report on Wednesday afternoon, but before you get wrapped up in false narratives, understand that Netflix trades on international growth. The reason Netflix shares are falling is because international net additions were 2.8 million. Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt. If Netflix misses by that much — 42 percent — on in
Netflix just missed hard on the only number that matters — international subscriber growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: alex sherman
Keywords: news, cnbc, companies, valuation, net, additions, shares, netflix, growth, understand, matters, missed, number, international, subscriber, hard, wrapped, trades


Netflix just missed hard on the only number that matters — international subscriber growth

Netflix shares are tanking almost 11 percent after-hours following the company’s Q2 earnings report on Wednesday afternoon, but before you get wrapped up in false narratives, understand that Netflix trades on international growth.

The reason Netflix shares are falling is because international net additions were 2.8 million. Analysts thought that number would be closer to 4.8 million.

Netflix can sustain its lofty valuation only if global subscriber growth can support increasing content spending and debt. And growth is entirely dependent on Netflix’s prospects internationally, in countries such as India and Malaysia. If Netflix misses by that much — 42 percent — on international net additions, the stock is going to get hammered.

The bigger question is why Netflix missed by that much.


Company: cnbc, Activity: cnbc, Date: 2019-07-17  Authors: alex sherman
Keywords: news, cnbc, companies, valuation, net, additions, shares, netflix, growth, understand, matters, missed, number, international, subscriber, hard, wrapped, trades


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

CBS and Viacom set August target date for merger talks, after exploring for more than a year

CBS and Viacom continue to bob along with merger talks and are now circling Aug. 8 as an internal deadline to agree to a deal, according to people familiar with the matter. — than that, CBS and Viacom happen to share Aug. 8 as the day both companies report second-quarter earnings. Last year, CBS and Viacom got close to announcing a merger with an exchange ratio of 0.6135 CBS share for every Viacom Class B share. This time, the CBS and Viacom boards of directors won’t reach an agreement on the e


CBS and Viacom continue to bob along with merger talks and are now circling Aug. 8 as an internal deadline to agree to a deal, according to people familiar with the matter. — than that, CBS and Viacom happen to share Aug. 8 as the day both companies report second-quarter earnings. Last year, CBS and Viacom got close to announcing a merger with an exchange ratio of 0.6135 CBS share for every Viacom Class B share. This time, the CBS and Viacom boards of directors won’t reach an agreement on the e
CBS and Viacom set August target date for merger talks, after exploring for more than a year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: alex sherman
Keywords: news, cnbc, companies, date, ratio, exchange, deal, talks, wont, set, viacom, bakish, merger, exploring, cbs, companies, issues, target


CBS and Viacom set August target date for merger talks, after exploring for more than a year

Robert Bakish, chief executive officer of Viacom International Media Networks, speaks during a Bloomberg Television interview at the Mobile World Congress in Barcelona, Spain, on Tuesday, March 3, 2015. The event, which generates several hundred million euros in revenue for the city of Barcelona each year, also means the world for a week turns its attention back to Europe for the latest in technology, despite a lagging ecosystem.

CBS and Viacom continue to bob along with merger talks and are now circling Aug. 8 as an internal deadline to agree to a deal, according to people familiar with the matter.

While a transaction could be announced sooner — or later! — than that, CBS and Viacom happen to share Aug. 8 as the day both companies report second-quarter earnings. That makes it a natural goal post for a merger that’s been speculated about for more than a year, said the people, who asked not to be named because discussions are private.

Both companies have conceptually agreed that a deal to gain scale makes sense, said the people. Bulking up to compete with Netflix, Disney, Comcast and others is a narrative that’s been pushed by controlling shareholder Shari Redstone, who is prohibited from proposing a merger of the companies herself — a provision from a lawsuit she settled with CBS Corp. last year. Redstone would like a combined CBS-Viacom to get even larger as it prepares to renew expensive NFL broadcast rights in the coming years. She attended Allen & Co.’s Sun Valley conference last week, an annual setting for companies to begin thinking about future acquisitions.

The price of the transaction, which will come in the form of a merger exchange ratio, hasn’t been discussed and won’t be addressed until all strategic and management issues are sorted out, according to people familiar with the matter.

Last year, CBS and Viacom got close to announcing a merger with an exchange ratio of 0.6135 CBS share for every Viacom Class B share. That deal was ultimately scuttled by management issues, but those issues were resolved when Les Moonves stepped down as CBS CEO last year amid sexual misconduct allegations.

This time, the CBS and Viacom boards of directors won’t reach an agreement on the exchange ratio until all other elements of a deal are set, the people said.

Viacom wants the ratio to increase slightly from last year because the media company, run by CEO Bob Bakish, has outperformed CBS in the last year and avoided a blackout with AT&T’s DirecTV earlier this year, which had been an overhang on the stock in 2018. Issues such as leadership and board composition could swing the exchange ratio one way or another, although the ratio likely won’t move drastically, said the people.

Still, some of Viacom’s outperformance may be due to a renewed M&A premium baked into the stock. And Viacom agreed to lower carriage fees to secure the DirecTV deal.

Viacom is up about five percent in the last 12 months. CBS is down 11 percent in the same time period.

Bakish is expected to be the leader of a combined company, as CNBC has previously reported. While CBS’s board has concerns about Viacom’s leadership under Bakish, the combined boards of the companies will likely work with Bakish to name other executives instead of mandating that certain CBS executives come pre-installed as part of a deal, said the people. CBS CEO Joe Ianniello’s role is still unclear, said the people. His contract as CBS CEO’s runs out at the end of December.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: alex sherman
Keywords: news, cnbc, companies, date, ratio, exchange, deal, talks, wont, set, viacom, bakish, merger, exploring, cbs, companies, issues, target


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Disney and Charter are talking about carriage fees, and the outcome could affect how much you pay for cable in the streaming era

But this particular Disney deal has widespread implications for how future TV carriage deals will be crafted. The outcome could lead to more contentious battles between TV providers and content creators, and perhaps stem the tide of rising cable TV bills. But the advent of direct-to-consumer streaming products could lead to blowout public fights over the declining value of linear TV networks. ESPN is the most important cable network in the cable bundle. There’s no impetus for Disney to change th


But this particular Disney deal has widespread implications for how future TV carriage deals will be crafted. The outcome could lead to more contentious battles between TV providers and content creators, and perhaps stem the tide of rising cable TV bills. But the advent of direct-to-consumer streaming products could lead to blowout public fights over the declining value of linear TV networks. ESPN is the most important cable network in the cable bundle. There’s no impetus for Disney to change th
Disney and Charter are talking about carriage fees, and the outcome could affect how much you pay for cable in the streaming era Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: alex sherman
Keywords: news, cnbc, companies, fees, cable, content, era, pay, disney, paytv, espn, network, talking, tv, networks, charter, streaming, carriage, outcome, valuable


Disney and Charter are talking about carriage fees, and the outcome could affect how much you pay for cable in the streaming era

The Walt Disney Company CEO, Robert Iger arrives for the World premiere of Marvel Studios’ ‘Avengers: Endgame’ at the Los Angeles Convention Center on April 22, 2019 in Los Angeles. VALERIE MACON | AFP | Getty Images

Disney is set to renew its multiyear carriage agreement with Charter, the second-largest U.S. pay TV provider, at the beginning of August, according to people familiar with the matter. So far, there are no signs the two sides will have a testy public renegotiation. That is par for the course for Disney, which usually hammers out a deal without fanfare. After all, pay-TV providers have never had the stomach to black out ESPN, Disney’s most valuable cable channel and by far the most expensive network in the pay-TV bundle. But this particular Disney deal has widespread implications for how future TV carriage deals will be crafted. The outcome could lead to more contentious battles between TV providers and content creators, and perhaps stem the tide of rising cable TV bills. That’s because Disney is about to transition to a new era of direct-to-consumer streaming. AT&T’s WarnerMedia and Comcast’s NBC Universal, the next largest media companies, will follow in its footsteps in early 2020. In the past, carriage disagreements almost always stemmed over the same thing: the network that makes or licenses the content wants the pay-TV operator — your cable or satellite company — to pay more money for that programming. The fee negotiations sometimes result in networks being blacked out on a pay-TV service for a period of time. Viacom has had a few extended carriage conflicts in recent years. Univision recently settled one with Dish. Jeremy Lin’s insane three-week stretch of National Basketball Association games while on the New York Knicks helped convince Time Warner Cable to reach a deal with MSG Network a few years ago. The distributor and the content company usually reach an agreement, because the traditional pay-TV ecosystem has long been symbiotic — operators need material for customers to watch, and the programmers need people to see their programs. But the advent of direct-to-consumer streaming products could lead to blowout public fights over the declining value of linear TV networks. Content providers who have long pushed for higher carriage fees could face severe pushback from pay-TV providers who say that linear networks aren’t as valuable because so much content is available online — not only at Netflix and Amazon, but now within the content companies’ own streaming products. Moreover, if customers do flee the pay-TV bundle for streaming services, pay-TV providers may want to cut content spending even more to keep costs down.

Saving the bundle

In November, Disney will start selling Disney+, a family-friend entertainment product, for $6.99 a month. This will include Disney movies and TV shows from Disney, Pixar, Marvel Studios, Lucasfilm, National Geographic and 20th Century Fox. Disney is also planning on bundling Disney+ with Hulu and ESPN+, its direct-to-consumer streaming service focused on sports, to make the suite of products more appealing to consumers. no current season As Disney makes its content available outside of the pay-TV ecosystem, the value of its pay-TV channels should decrease. In other words, if the only way your child can watch “The Lion Guard” is on the Disney Channel, which requires a pay-TV subscription, the Disney Channel is a valuable asset to the pay-TV bundle. But if your child can now get that show on Disney+, which doesn’t require a pay-TV subscription, the value of the Disney Channel should decrease. The more stuff that’s available outside the network, the less that network is worth. Disney is trying to store some of the value of Disney Channel by prohibiting current seasons of all Disney Channel shows from being available on Disney+, according to a person familiar with the matter.

ESPN vs. ESPN+

The Disney-Charter negotiations probably won’t get too contentious because more than any other programmer, Disney wants to protect the pay-TV ecosystem. ESPN is the most important cable network in the cable bundle. It earns more than $9 for its suite of networks for every single customer that signs up for pay-TV, regardless of who is actually watching the networks. A lot of people watch “Monday Night Football” — it was the most-watched series on cable in 2018 for the second straight year. Pay TV customers would revolt if ESPN weren’t included in a standard cable package. So far, ESPN+ has only been an add-on product to ESPN. It hasn’t touched the network’s most valuable sports assets, which include “Monday Night Football,” NBA games, prime time college football, several tennis and golf grand slams and so on. There’s no impetus for Disney to change this arrangement because ESPN has successfully kept raising its carriage fee, unlike, say, Viacom’s cable networks. Still, Disney will almost certainly push for more flexibility in its renewal deal with Charter. Disney will want the option to make certain sports or games available for ESPN+ if consumers drastically change their viewing habits in the next few years, or if Wall Street starts valuing legacy media companies based on streaming customer growth, as they do with Netflix. Moreover, Disney wants pay-TV providers to integrate ESPN+ into their user interfaces, just as Comcast has done for Amazon and Netflix content, according to a person familiar with the matter. Then, a pay-TV operator could sell ESPN and ESPN+ together for an additional fee, and a consumer could watch all ESPN+ content as a network, just like ESPN. At this point, Disney isn’t asking to remove valuable assets from ESPN and shift them to ESPN+, two of the people said. That’s key. Charter isn’t going to want to lock in a rate increase for ESPN if the linear network could lose its exclusivity value in the coming years as Disney makes some events available to ESPN+. But Disney will likely want the ability to place particular games on ESPN+ and add other sweeteners to entice more consumers to sign up for the digital service. And those games probably would have lived on ESPN or one of its companion networks. Spokespeople for Disney and Charter declined to comment on specifics of the carriage talks between the companies. Terms in carriage fees are often applicable across pay-TV platforms thanks to so-called “most favored nation ” clauses. So the word will get out in the media ecosystem how Disney has structured its deal, and it will be held as a standard when WarnerMedia’s and NBC Universal’s big contracts come up for renewal. And while Disney may not want to rock the pay-TV bundle, WarnerMedia doesn’t have nearly the same incentive, because it doesn’t own particularly valuable linear networks (TBS, TNT and CNN are its strongest). Then again, AT&T owns DirecTV and WarnerMedia, and Comcast owns NBC Universal. So both media companies may decide to hedge their asks for the benefit of their parent companies, keeping the bundle alive and (relatively) well.

Does video even matter?


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: alex sherman
Keywords: news, cnbc, companies, fees, cable, content, era, pay, disney, paytv, espn, network, talking, tv, networks, charter, streaming, carriage, outcome, valuable


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Tech and media moguls arrive in Sun Valley, Idaho, where many of the biggest deals in history have gone down

Private jets are parked at the Friedman Memorial Airport during the annual Allen and Co. Sun Valley media conference in Sun Valley, IdahoThe invite-only Allen & Co. Sun Valley conference, also known as “summer camp for billionaires,” kicks off in Sun Valley, Idaho this week. It’s where some of the biggest names in tech and media flock, and where seeds have been planted for tech and media acquisitions, including Amazon founder Jeff Bezos’s purchase of The Washington Post, Verizon’s acquisition of


Private jets are parked at the Friedman Memorial Airport during the annual Allen and Co. Sun Valley media conference in Sun Valley, IdahoThe invite-only Allen & Co. Sun Valley conference, also known as “summer camp for billionaires,” kicks off in Sun Valley, Idaho this week. It’s where some of the biggest names in tech and media flock, and where seeds have been planted for tech and media acquisitions, including Amazon founder Jeff Bezos’s purchase of The Washington Post, Verizon’s acquisition of
Tech and media moguls arrive in Sun Valley, Idaho, where many of the biggest deals in history have gone down Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: todd haselton alex sherman, todd haselton, alex sherman
Keywords: news, cnbc, companies, idaho, sale, tech, deals, biggest, billion, allen, media, disney, history, including, arrive, gone, original, moguls, tv, valley


Tech and media moguls arrive in Sun Valley, Idaho, where many of the biggest deals in history have gone down

Private jets are parked at the Friedman Memorial Airport during the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho

The invite-only Allen & Co. Sun Valley conference, also known as “summer camp for billionaires,” kicks off in Sun Valley, Idaho this week.

It’s where some of the biggest names in tech and media flock, and where seeds have been planted for tech and media acquisitions, including Amazon founder Jeff Bezos’s purchase of The Washington Post, Verizon’s acquisition of Yahoo and, in 1995, Disney’s merger with ABC. It’s also great marketing for investment bank boutique Allen & Co., which has advised on some of the biggest tech, media and telecom mergers, including Time Warner’s $108 billion sale to AT&T and LinkedIn’s $26 billion sale to Microsoft.

A lot has changed in the media landscape since last year. Fox sold its entertainment assets to Disney for $71 billion. Netflix, once the king of streaming, will soon compete for viewers with new services from Disney, AT&T and Comcast’s NBC, all of which are competing to create the best collection of original and existing TV and movie content. Apple is also throwing its hat in the game, with a new service called Apple TV+ that will launch this fall with original movies.

Here’s who’s showing up:


Company: cnbc, Activity: cnbc, Date: 2019-07-10  Authors: todd haselton alex sherman, todd haselton, alex sherman
Keywords: news, cnbc, companies, idaho, sale, tech, deals, biggest, billion, allen, media, disney, history, including, arrive, gone, original, moguls, tv, valley


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Netflix has now lost two of its most popular shows as old media companies flex their muscle

Something strange is happening in the world of technology and media: Netflix is becoming the incumbent, and the upstart challengers are companies that have been around for nearly a century. But there’s little doubt that part of the motivation of legacy media companies embracing subscription streaming services is to capture some of Netflix’s valuation — or bring CEO Reed Hastings’ behemoth back down to earth. The WarnerMedia streaming service will have the exclusive rights to the hit sitcom Frien


Something strange is happening in the world of technology and media: Netflix is becoming the incumbent, and the upstart challengers are companies that have been around for nearly a century. But there’s little doubt that part of the motivation of legacy media companies embracing subscription streaming services is to capture some of Netflix’s valuation — or bring CEO Reed Hastings’ behemoth back down to earth. The WarnerMedia streaming service will have the exclusive rights to the hit sitcom Frien
Netflix has now lost two of its most popular shows as old media companies flex their muscle Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: alex sherman
Keywords: news, cnbc, companies, lost, shows, muscle, media, popular, rights, million, streaming, hbo, friends, warnermedia, netflix, service, old, companies, flex


Netflix has now lost two of its most popular shows as old media companies flex their muscle

Netflix CEO Reed Hastings is pictured on May 3, 2018 in Lille, northern France during the first edition of the TV Series Mania festival.

Something strange is happening in the world of technology and media: Netflix is becoming the incumbent, and the upstart challengers are companies that have been around for nearly a century.

Disney, AT&T’s WarnerMedia, and Comcast’s NBCUniversal are all launching direct-to-consumer streaming services by the first quarter of 2020. And they’re all coming after Netflix.

Sure, there will be enough consumer dollars to go around for Netflix to keep its massive subscriber base (155 million globally) growing. But there’s little doubt that part of the motivation of legacy media companies embracing subscription streaming services is to capture some of Netflix’s valuation — or bring CEO Reed Hastings’ behemoth back down to earth.

That’s why WarnerMedia announced Tuesday it is pulling Friends off Netflix when it debuts its service in 2020, which will be called HBO Max. The WarnerMedia streaming service will have the exclusive rights to the hit sitcom Friends. AT&T is paying $85 million per year for the U.S. rights for five years, according to a person familiar with the matter. Netflix was paying $80 million for global rights to the show and wasn’t in a position to re-bid, given WarnerMedia’s contractual options around streaming rights for the show, the person said. The Wall Street Journal first reported how much WarnerMedia would pay for Friends.

Netflix has been preparing to lose Friends, just as it realized it may lose The Office to NBC Universal’s streaming service, which will happen in 2021, and has been spending billions on new original content exclusive to the service to keep customers satisfied.

But losing both Friends and The Office is significant to the potential health of the streaming service moving forward. The two series are the two most watched shows on all of Netflix, according to research firm Jumpshot.

WarnerMedia CEO John Stankey’s goal is to get 70 million subscribers to sign up for HBO Max. That’s double the amount of U.S. subscribers for HBO. For years, Wall Street has valued Netflix on its subscriber growth rather than its profits. Legacy media companies have rued this dichotomy, frustrated that investors value old media differently than Netflix, which has grown from a startup to a company with a $175 billion enterprise value.


Company: cnbc, Activity: cnbc, Date: 2019-07-09  Authors: alex sherman
Keywords: news, cnbc, companies, lost, shows, muscle, media, popular, rights, million, streaming, hbo, friends, warnermedia, netflix, service, old, companies, flex


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Broadcom looks to old software names Symantec and Tibco as chip business deteriorates

Now, the company is in talks to acquire 37-year-old security software vendor Symantec, a company that’s been plagued by deteriorating financials and a revolving door in the C-suite. If the Symantec deal doesn’t get done, Broadcom has also been working on a deal to acquire an infrastructure software company and has considered Tibco, according to three people familiar with the matter. Buying Tibco or another infrastructure software company would be delayed or sidelined indefinitely if the Symantec


Now, the company is in talks to acquire 37-year-old security software vendor Symantec, a company that’s been plagued by deteriorating financials and a revolving door in the C-suite. If the Symantec deal doesn’t get done, Broadcom has also been working on a deal to acquire an infrastructure software company and has considered Tibco, according to three people familiar with the matter. Buying Tibco or another infrastructure software company would be delayed or sidelined indefinitely if the Symantec
Broadcom looks to old software names Symantec and Tibco as chip business deteriorates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: ari levy alex sherman, ari levy, alex sherman
Keywords: news, cnbc, companies, broadcom, sales, company, tibco, names, symantec, business, tan, customers, software, old, looks, semiconductor, billion, chip, deteriorates


Broadcom looks to old software names Symantec and Tibco as chip business deteriorates

Broadcom CEO Hock Tan announces the repatriation of his company headquarters to the United States from Singapore as U.S. President Donald Trump looks on during a ceremony in the Oval Office of the White House on November 2, 2017 in Washington, DC.

After the Trump administration blocked Broadcom’s effort to buy chipmaker Qualcomm last year, CEO Hock Tan turned his attention to software — chasing aging companies that public markets had largely forgotten.

First it was CA Technologies, which Broadcom agreed to acquire a year ago for $19 billion, snapping up a 42-year-old developer of software used by information technology teams.

Now, the company is in talks to acquire 37-year-old security software vendor Symantec, a company that’s been plagued by deteriorating financials and a revolving door in the C-suite. Bloomberg reported on Tuesday that the companies were in advanced talks, and CNBC confirmed with sources familiar with the matter that discussions had been underway.

If the Symantec deal doesn’t get done, Broadcom has also been working on a deal to acquire an infrastructure software company and has considered Tibco, according to three people familiar with the matter. Vista Equity Partners acquired Tibco for $4.3 billion in 2014. Bloomberg reported Vista was considering a Tibco sale last year.

Buying Tibco or another infrastructure software company would be delayed or sidelined indefinitely if the Symantec acquisition occurs, said the people, who asked not to be named because the discussions are confidential. Different sets of Broadcom advisors have been working on both deals simultaneously because Tan is determined to do a large acquisition this year, the people said.

The move would mark a fundamental shift for a company that’s long counted on a few big buyers of processors for a significant chunk of revenue. Broadcom estimates that Apple, which buys components for phones and tablets, accounted for 13% of sales in the latest quarter (down from 17% a year earlier) through various suppliers including Foxconn. Aggregate sales to Broadcom’s top five customers made up about 32% of revenue.

Broadcom needs software because its semiconductor business is hurting, primarily due to uncertainty surrounding Huawei. Since the Chinese networking giant was blacklisted in May from buying U.S. equipment without permission, Broadcom cut its forecast for semiconductor sales this year by $2 billion. The business was already struggling, with semiconductor solutions revenue dropping 10% or more in each of the first two quarters this year.

“It is clear that the U.S./China trade conflict, including the Huawei export ban, is creating economic and political uncertainty, and reducing visibility for our global” manufacturing customers, Tan said during the company’s fiscal second-quarter earnings call last month. “As a result, demand volatility has increased and our customers are actively reducing inventory levels to manage risk.”


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: ari levy alex sherman, ari levy, alex sherman
Keywords: news, cnbc, companies, broadcom, sales, company, tibco, names, symantec, business, tan, customers, software, old, looks, semiconductor, billion, chip, deteriorates


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post