T-Mobile and SoftBank Should Immediately Deny That Legere Will Take WeWork CEO Spot

The Wall Street Journal reported that T-Mobile CEO John Legere is negotiating a job as CEO at WeWork. It was also confirmed by Fox Business’ Charlie Gasparino. Nevertheless, this story makes little sense to us and we think T-Mobile and SoftBank should deny its veracity, immediately. Legere is certainly qualified to take the WeWork CEO position, perhaps over-qualified given his track record. There would also be significant financial incentive for Legere to accept, given its well heeled owner. However, it’s … Continue reading T-Mobile and SoftBank Should Immediately Deny That Legere Will Take WeWork CEO Spot

Three Spectrum Items FCC Chairman Pai Needs To Act on Now In #RaceTo5G

In the next few weeks and months, the FCC is likely to decide on key spectrum issues that could end up being pivotal for the success of 5G in the United States. Further delays or unfavorable decisions could trigger bankruptcies, stymie investment or, most importantly, materially delay or impair spectrum that is critical for the United States to win the Race to 5G. Unfortunately, the ongoing uncertainty about whether T-Mobile will be able to close the proposed acquisition of Sprint … Continue reading Three Spectrum Items FCC Chairman Pai Needs To Act on Now In #RaceTo5G

Is Netflix Past Peak Global Net Adds or Can 2020 Hit a New High?

Yesterday afternoon, Netflix Founder and CEO, Reed Hastings, was interviewed by The New York Times’ Andrew Ross Sorkin at the 2019 Dealbook Conference. The entire 30-minute interview is embedded below (key moments of the interview pulled out below along with timestamps). We were able to ask Hastings a question during audience Q&A and took the opportunity to ask the #1 question we have been getting from investors: “There’s been several times throughout Netflix’s history where investors have feared that you … Continue reading Is Netflix Past Peak Global Net Adds or Can 2020 Hit a New High?

Dish Proves Dropping RSNs Can Be Very Profitable: “Stop Stuffing the Damn Bundle”

As we enter the #postbundle world with an increasing array of low-cost (or no incremental cost) direct-to-consumer streaming services, the legacy multichannel video bundle needs to move to an a la carte model or the price/value proposition will collapse on itself. We continue to believe that at best half of the current 85+ million US MVPD/vMVPD households have at least one diehard sports fan. With the overwhelming majority of non-sports fan households capable of being satisfied without a linear TV … Continue reading Dish Proves Dropping RSNs Can Be Very Profitable: “Stop Stuffing the Damn Bundle”

The Five Questions Disney Needs to Answer Ahead of the Disney+ Launch

Disney is set to report fiscal Q4 (Sept) 2019 earnings tomorrow after the close, just four days before the launch of Disney+, with direct-to-consumer streaming now the company’s top priority. While investors will be eager to hear more about current theme park trends following Disney’s substantial investment in Star Wars lands at both domestic theme parks, as well as how ESPN is faring in the face of a dramatic acceleration in cord-cutting (total subs likely running down 4% year-over-year with calendar Q4 set to be down ~5%), everything is now secondary to the level of success across Disney’s streaming efforts. Continue reading

Masa Remains Bullish On WeWork And Vision Fund As Sprint Looms Large

Masa Son remained optimistic about the rising value of SoftBank on his call with investors this morning. However, he didn’t have much to say on the sale of Sprint to T-Mobile, perhaps the biggest catalyst facing the stock this year. On the call, Masa highlighted the Vision Fund’s performance despite taking a $9 billion write down of asset value in that fund this quarter. He also restated his belief in WeWork, which he insists SoftBank did not “rescue” and expects to … Continue reading Masa Remains Bullish On WeWork And Vision Fund As Sprint Looms Large

T-Mobile Didn’t Extend Sprint Merger Agreement. It’s Time For DT To Renegotiate

T-Mobile has not announced an extension of its merger agreement with Sprint. The deal passed its outside date deadline on Friday. That means that both companies have gained the option to terminate the deal at any time. We think Deutsche Telekom should use that flexibility to renegotiate the terms of the deal, given the erosion at Sprint and the rising cost of the transaction. We also believe a lower price paid to Sprint could actually help its case with the States … Continue reading T-Mobile Didn’t Extend Sprint Merger Agreement. It’s Time For DT To Renegotiate

Eight Reactions to HBO Max Investor Day

While WarnerMedia did not address all of our ten questions heading into their HBO Max Investor Day (see our list, link), we now have a far better understanding of the growth strategy and financial plan for HBO Max, in addition to a first-look at what the service actually looks like (HBO Max is taking technology and consumer interface far more seriously than the less than inspiring HBO Go and HBO Now). After sitting through the investor day, the most obvious … Continue reading Eight Reactions to HBO Max Investor Day

BlizzCon Should Catalyze Recovery – Initiating Activision Blizzard with BUY, $68 Target

It has been nearly a year since the wheels came off at Activision Blizzard (ATVI). A company previously known for superior execution seemed to have lost its way in a hurry, not only to the detriment of investors, but also to ATVI’s relationship with its passionate player base.  Since then, ATVI has moved quickly to execute a turnaround, and shares have moved well off their 52-week low with recent momentum from Modern Warfare (fastest selling CoD this generation), Call of Duty: Mobile and World of Warcraft Classic.  However, as BlizzCon kicks … Continue reading BlizzCon Should Catalyze Recovery – Initiating Activision Blizzard with BUY, $68 Target

Handbook for WarnerMedia’s HBO Max Investor Day – Top Ten Questions Beyond Pricing

Later today, we will be attending WarnerMedia’s first ever analyst day where management will unveil details and strategy for the coming launch of HBO Max and how it fits into their larger WarnerMedia/AT&T strategy. The single biggest question heading into today’s event is what will HBO Max be priced at and how will that impact legacy HBO (with expectations ranging from sub $10, which requires repricing HBO’s existing sub base to a slight premium to HBO’s current $15 retail price) … Continue reading Handbook for WarnerMedia’s HBO Max Investor Day – Top Ten Questions Beyond Pricing