We believe investors’ expectations of a coming settlement between Paramount and 12 State AGs suing to block the pending acquisition of Warner Bros Discovery are far too optimistic. We sense the level of structural remedies (divestitures) Paramount would need to make to satisfy State AGs is simply too high, with Paramount extremely confident that…
As the media industry shifted from wholesale linear distribution to direct-to-consumer streaming, we predicted (link) that technology would become the new Hollywood talent: “the content on the screen is only part of the equation in creating consumer happiness; technology is equally, if not in some ways more important to creating a great experience for consumers.” Unfortunately…
Cogent sold ten data centers, cut 6% of its workforce, and is refinancing its debt. None of it fixes revenue or produces free cash flow. We now model free cash flow as negative in every year through 2031. The only path to free cash flow is aggressively growing wavelengths and that job currently belongs to…
Since we began covering Madison Square Garden, investors have clamored for the Dolans to take action to close the discount between the Knicks and Rangers public and private market valuations. The process is now in the works, but hardly close to an end. MSGS filed a Form 10 on Friday, moving ahead with the separation…
On Monday, Zoox became just the third company in America to charge for a robotaxi ride with nobody behind the wheel. In this note, we do the math on a fare card that says more than Zoox intended. We surface a restriction, sitting in a federal filing, that contradicts what Zoox’s CEO told Bloomberg this…
Everything Paramount has done over the past several weeks appears to be inflaming the situation with California Attorney General Rob Bonta and increasing the odds this case goes to trial in March 2027. Given that the merger agreement expires on June 4, 2027, going to trial is a suicide mission that will likely lead to the merger collapsing and the Ellison family being forced to pay the $7 billion breakup…
We opened our STUB IPO preview (link) describing how StubHub’s IPO roadshow was very much about CEO and controlling shareholder Eric Baker’s journey: conceiving StubHub, being forced out, founding viagogo and ultimately buying StubHub back from eBay. We painted the STUB investment story as almost inseparable from Baker himself. Nearly a year later, that remains…
Over the past 24 hours, four notable developments have emerged around the pending antitrust litigation over Paramount’s proposed acquisition of Warner Bros. Discovery. Two came from earnings calls, one from the CEO of the second-largest theater chain and one from Paramount’s own chief legal officer…
While Paramount has repeatedly claimed that the State AGs and the WGA have ignored reality to invent an antitrust case to block the merger of Paramount Skydance and Warner Bros. Discovery, we believe it no longer matters. Nor does David Ellison’s view that the State AGs’ case is politically motivated and tied to CNN. Nor does Chief Legal Officer Makan Delrahim’s view…
When Disney reports fiscal (June) Q3 2026 earnings next Wednesday, August 5th, we expect Disney to announce its first major strategic move under new CEO Josh D’Amaro. We believe Disney will announce the sale of…
You must be logged in to post a comment.