Nexstar used the stage at an investor conference this week to gloat about being one of the only media stocks that appreciated in 2022, driven by robust free cash flow, and to explain how they believe Nexstar stock is still cheap. As we listened, we could not help but think about Nextar’s blindness to a…
Netflix Co-CEO, Ted Sarandos, spoke a few weeks ago at The Economic Times Global Business Summit. We have embedded the entire interview below, with time stamped bullets of key moments. There has been significant investor interest in Netflix’s recent price reductions in smaller markets around the world (we talked to why this fear was misplaced…
Broadcast TV station groups have been incredibly savvy over the past decade leveraging an antiquated regulatory system that dates back to the 1992 Cable Act to drive retransmission consent fees. As we discussed ten years ago in our post The Disequilibrium of Power: How Retransmission Consent Went So Wrong & How to Fix It, retrans…
LightShed’s Brandon Ross Interviewed by Puck News’ Matthew Belloni on The Town Podcast February 2022
Last week, Puck News’ Matt Belloni interviewed us on The Town podcast. The conversation focused on the future of regional sports networks. Local sports distribution has become one of the most challenging problems created by the decay of the multichannel television bundle. The RSNs were an extremely profitable business for all stakeholders for the past several decades…
It has been less than a year since the creation of Warner Bros. Discovery on April 8, 2022. As the WBD transaction closed, David Zaslav and team faced a perfect storm of challenges. The ad market was becoming undone with rising inflation (and brands pulling back spend fearing a slowing economy) and there was a…
During last week’s fiscal (Dec) Q1 2023 earnings call, newly reminted Disney CEO Bob Iger implied that Disney could be looking to sell Hulu, which ties to our February 3rd post: Is Disney Preparing to Shop Hulu? What makes Iger’s comments so interesting is how much his view of Hulu and general entertainment content has…
Iridium is a stock that a broader investor base should consider. It grows recurring service revenue by 10% per year and generates ~40% free cash flow margins. Its recently announced partnership with Qualcomm offers new revenue opportunities by connecting common smartphones to its global satellite constellation. Iridium’s market cap is $7.7 billion and it trades…
Disney is set to report their first quarterly earnings tomorrow since the return of Disney CEO Bob Iger last November. There has been no public discussion of his strategy beyond Iger’s announced plan to restructure the management team and return power to the creatives after the DMED organizational debacle spearheaded by former CEO Bob Chapek.…
We are downgrading AT&T to Neutral. Our estimates are no longer materially divergent from consensus and AT&T’s dividend yield dropped beneath Verizon’s, as it should have. We do not a assign price targets to Neutral rated stocks, but AT&T is near our estimate of year-end fair market value of $21. AT&T’s transformation to a connectivity…
Last week, we published: Is Disney Preparing to Shop Hulu? following their decision to start licensing content more aggressively to third-parties versus keeping all their content exclusive to their streaming platforms. We sense investors would view a Disney sale of Hulu quite favorably as it would clarify their streaming strategy, reduce leverage, and improve DTC…
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