Megan Chadwick’s Post

📈 Star Entertainment Group Limited (ASX: SGR) Breaks Losing Streak with a 7.1% Rebound! 🎰 Star Entertainment Group Limited has just ended a five-day downturn, with shares climbing 7.1% to $0.225, at the time of writing. This bounce-back comes after a period of heavy selling by Perpetual, which recently divested 129.7 million shares at a discounted 20 cents each, totaling approximately $26 million. Despite the initial pressure from this large sell-off, investor interest appears to be reigniting. The discounted entry points have created renewed optimism, especially as Star Entertainment maneuvers through regulatory and financial challenges. With the market now watching closely, there’s cautious hope that the company’s strategies and future leadership will stabilize operations and restore investor confidence. Can Star Entertainment sustain this positive momentum? Only time will tell, but today's rebound is certainly a step in the right direction. 🚀 https://lnkd.in/gn5YVSKC #StarEntertainmentGroup #ASX #StockMarketUpdate #Investors #CasinoIndustry #MarketRebound

Industry Report Lionsgate's decision to split into two separate publicly traded companies stands in stark contrast how consolidation has plauged the entertainment industry. In recent years, larger media companies have been merging to better compete in a rapidly changing market. Major mergers, such as Warnes Brothers merger with Discovery and Comcast’s merger with NBCUniversal, illustrate the desire for consolidation, where larger conglomerates hope to maximize assets, from film studios to streaming platforms. Lionsgate’s split, however, is a strategic move in the opposite direction. By separating its studio operations from Starz, Lionsgate seeks to create two focused entities that can pursue independent operating strategies. This allows each company to concentrate on its core strengths, with Lionsgate Studios honing its focus on content creation and production, while Starz can zero in on its streaming and television platforms. Moreover, Lionsgate’s decision reflects a growing sentiment among some media companies that splitting operations can create help zero in on the priorities of a media giant. It acknowledges the evolving landscape of entertainment, where companies must be adaptable to new technologies and shifting consumer preferences. While consolidation can offer financial strength, Lionsgate is betting that a more focused strategy will allow its businesses to thrive and potentially offer new avenues for acquisition or merger in the future. This decision underscores the diversity of approaches in the entertainment indusrty, highlighting that consolidation is not the only path to success. https://lnkd.in/eJYKUHGw James (J.T.) Hutchinson Esquire Group Inc.

2024 marked a turning point for #Hollywood, with high-stakes deals redefining the industry. From streaming giants to AI-driven innovations, these agreements set the tone for how content is created, distributed, and experienced. Here’s a look at the year’s most impactful moves. Skydance Media, led by David Ellison, acquired Paramount Global in a $8 billion deal backed by RedBird Capital Partners, consolidating Paramount’s iconic assets. The National Basketball Association (NBA) secured an $11-year, $76 billion sports rights deal with The Walt Disney Company, NBCUniversal, and Amazon, ensuring its future on broadcast and streaming platforms. Netflix signed a $5 billion, 10-year deal for WWE Raw, marking its largest live programming commitment yet. The Six Flags-Cedar Fair merger, valued at $8 billion, created a mega theme park operator to rival Disney and Universal. Disney invested $1.5 billion in Epic Games, aiming to build a digital universe powered by Disney IP and engage younger audiences. Lionsgate pioneered AI integration, using its film library to train generative AI for content creation. Sony acquired Alamo Drafthouse, signaling the return of studios to the theater business and expanding experiential entertainment. Walmart bought VIZIO for $2.3 billion, strengthening its connected TV and advertising capabilities. RedBird IMI acquired All3Media for $1.45 billion, adding over 50 production banners to its growing empire. Charter Communications partnered with Warner Bros. Discovery., AMC Networks, and Paramount to bundle streaming services for cable customers. Legendary Entertainment, led by Josh Grode, ended Chinese investment with a buyout of Wanda’s stake, signaling shifting global dynamics. Podcasting saw growth with SiriusXM and Wondery acquiring top shows like SmartLess and Call Her Daddy. Silver Lake began taking Endeavor private, focusing on sports and entertainment divisions for private growth. Universal and Disney doubled down on immersive entertainment to maintain an edge in the theme park space. #HowItImpactsTheMarkets Streaming giants are redefining live and digital content while AI reshapes production. Theme parks are evolving, and global investments are shifting away from China, all indicating a dynamic future for Hollywood. #HollywoodDeals #StreamingWars #AIInMedia #EntertainmentInnovation #MergersAndAcquisitions

Warner Bros. Discovery Stock Falls as It Writes Down $9.1 Billion Warner Bros. Discovery reported second-quarter earnings that led to a significant stock drop, primarily due to a $9.1 billion non-cash goodwill impairment charge on its TV networks business. The company also missed analyst expectations for revenue, leading to a rough day in the markets. Key Highlights: – Earnings Per Share: 36 cents loss vs. a loss of 22 cents expected. – Revenue: $9.7 billion vs. $10.07 billion expected. – Goodwill Impairment: A $9.1 billion charge related to the reevaluation of the book value of its TV networks. – Stock Reaction: Shares dropped approximately 9% in after-hours trading. Financial Moves: – Debt Reduction: Warner Bros. Discovery paid down $1.8 billion in debt during the second quarter. The company now has $41.4 billion in gross debt and $3.6 billion in cash on hand. – Streaming Business: Despite the challenges, the streaming platform Max added 3.6 million subscribers, with global streaming customers reaching 103.3 million. Market and Industry Impact: – TV Networks Revenue Decline: Revenue from TV networks fell 8% to $5.27 billion due to declining advertising and distribution revenues. Streaming Revenue: Direct-to-consumer streaming revenue decreased by 5% to $2.57 billion, despite a significant 99% increase in advertising revenue for streaming. Company Strategy: – Focus on Growth: Warner Bros. Discovery’s focus is shifting toward growth in its studios and streaming units, reflecting a strategic pivot away from traditional TV networks. – Sports Rights and Bundles: The company is eyeing future growth with potential sports bundles, including a pairing with Disney’s ESPN and Fox set to launch this fall. 🔗 Read the full article here: https://lnkd.in/guN39EWr #WarnerBrosDiscovery #EarningsReport #MediaIndustry #Streaming #FinancialPerformance

On Friday, Citi initiated coverage on Lionsgate Studios Corp (NASDAQ:LION) stock with a Buy rating and set a price target of $14.00. The coverage begins as Lionsgate is recognized for its consistent performance as a standalone content creator. The firm's recent decision to spin off Starz, expected to be finalized by the end of the 2024 calendar year, is anticipated to potentially enhance the company's market valuation. The analyst at Citi highlighted Lionsgate's historical success, noting its established track record in the entertainment industry. The Buy rating reflects confidence in the company's strategic move to separate its Starz entity, which could result in a reevaluation of Lionsgate's stock by the market. The analyst's optimism is based on the potential for expansion of the company's trading multiples following the completion of the spin-off.

Warner Bros. Discovery (WBD) is an interesting candidate for potential acquisition or strategic investment due to its unique position as one of the three streaming survivors (Netflix and The Walt Disney Company being the other two) and its significant undervaluation compared to historical highs. With Paramount Global Shari Redstone, who controls Paramount through her family's holding company National Amusements (NAI), ended merger talks with Skydance Media could attention turn to WBD with further price weakness? 📉 ▪️From January 2024 high ($11.66 to $7.24): The decline here represents a decrease of approximately 38%. ▪️From 52 Week high ($14.76 to $7.24): This represents a decrease of approximately 51%. Here’s a comparative analysis of WBD’s book value, DCF valuation, and breakup value against its current market price of $7.24/share: ▪️Book Value: $16.73 (discount 57%) ▪️DCF Value: $10.49 (discount 30%) ▪️Breakup Value: $9.31 (discount 22%) Note that “Breakup Value” is tough to get right without insider info so breakup could be higher or lower. I used market multiples and info I could find in financials. Treat as a back of the napkin, please. The DCF analysis uses a weighted average cost of capital or discount rate between 6.5% and 7.9%, and a long-term growth rate set at 4%. Strategic Considerations ▪️Market Position: WBD remains one of the three core survivors in the streaming service market, alongside Netflix and Disney. Its current undervaluation compared to these competitors, who have not seen similar declines, makes it an attractive target for investors looking for value and growth potential. The is zero future performance premium built into the stock price, what would John Snow do? 🐲 ▪️Pricing Power: WBD raised prices of ad-free Max subscriptions reflecting its content strength. If this was a company in decline the opposite might be true. Here is the story: https://lnkd.in/gNQx4FGB ▪️Institutional Ownership and Potential for Block Sales: WBD has a substantial institutional ownership of over 50%, which means a significant portion of its shares are held by large financial organizations, mutual funds, and pension funds. These institutions can execute large block sales off-market, providing a streamlined pathway for an interested investor group to acquire a substantial stake without disrupting market prices significantly. ▪️Very Limited Insider Buying: In mid-May 2024, WBD President of International, Gerhard Zeiler, increased his holding to 908,130 shares with a purchase of 100,000 shares at $8.3. Over the past 12 months, insiders have added 5.5M shares. https://lnkd.in/gug9jU2Q 📣 The combination of WBD’s strong market presence, significant discounts on various valuation metrics, and the structural potential for large block transactions makes it an appealing candidate for a take-private deal or a strategic merger. I bought shares of WBD on the close—not investment advise.

# Only put off until tomorrow what you are willing to die having left undone ## A Robust Performance from Disney's Film Studio and Streaming Division Ignites Investor Excitement Disney, the renowned entertainment powerhouse, is on the brink of reaching new heights as its stock prepares to hit six-month highs in the wake of its impressive earnings report. With its film studio putting forth a robust performance and its streaming division achieving consecutive quarters of profit, investors have ample reason to rejoice. The film studio's success is a testament to Disney's consistent ability to captivate audiences with its enchanting storytelling and beloved franchises. Coupled with the streaming division's continued profitability, Disney's strategic investment in the digital realm is showing promising returns. This exemplary performance from Disney's film and streaming divisions serves as a powerful reminder of the company's enduring creativity and resilient business model. As investors witness the upward surge of Disney stock, taking action now becomes crucial to avoid succumbing to the dreaded Fear of Missing Out \(FOMO\). ## Act Now to Maximize Your Health Savings Account \(HSA\) Potential Don't miss out on the opportunity to grow your HSA funds through investing. By leveraging the power of your HSA, you can secure a healthier financial future for yourself and your family. Take control of your healthcare investments and unlock the potential for long-term growth while safeguarding your well-being. #hsa #investing #healthcare #health #family #wellness 💰💪🌱

The business landscape is abuzz with the latest news on Star Entertainment Group Ltd, with speculations of a potential takeover 🎲 Amid a trading halt, investors and industry experts alike are watching closely as rumors suggest acquisition interests from major players, such as Hard Rock Hotels and Casinos. 🏨 🎰📈 With shares last priced at a mere 45 cents, the unfolding story could mark a pivotal moment in the company's trajectory. Will this be Star Entertainment's narrative of rescue and revival, or a forced compromise at rock-bottom valuations? As the market holds its breath, we'll keep our eyes peeled for how the Star plays its hand in what could be a transformative period for the Australian casino operator. Read more about the potential shifts in Star’s strategic direction and what it could mean for shareholders: 👉 https://lnkd.in/gN-CTNtF #StarEntertainmentGroup #Takeover #BusinessNews #AustralianCasinos #Investment #Shareholders #CorporateStrategy #TradingHalt #MarketWatch #CasinoIndustry #HardRockHotels

We're all abuzz with Warner Bros. Discovery's recent announcement of a major restructuring effort, a move that aligns closely with Comcast’s own recent organizational overhaul. This strategic pivot signals an industry-wide trend toward consolidation and preparation for future partnerships or acquisitions. The restructuring at Warner Bros. Discovery appears to be aimed at optimizing its vast portfolio, simplifying operations, and maximizing value for shareholders. By streamlining decision-making processes and potentially realigning its core divisions, the company seems to be setting the stage for greater agility in an increasingly competitive landscape. Comcast’s earlier reorganization provided a clear precedent, and the results of their move have likely served as a guide. In both cases, the goal is clear: to position these media giants as attractive and adaptable partners for future strategic deals. Whether through mergers, content licensing agreements, or technological collaborations, these companies are future-proofing themselves for a rapidly evolving market. This latest development at Warner Bros. Discovery reflects broader shifts within the entertainment sector. The line between content creators, distributors, and tech innovators continues to blur. Companies that position themselves with leaner structures and clear strategic priorities are more likely to thrive in this new paradigm. The question remains: Could these moves lead to a new era of mega-mergers, or are they simply about improving efficiencies in an increasingly fragmented media ecosystem? Either way, Warner Bros. Discovery and Comcast are showing that adaptability is the key to staying relevant in the media and entertainment landscape. What are your thoughts on these restructuring efforts? Are we heading toward another wave of consolidation, or is this the start of something entirely new for the industry? https://lnkd.in/gGjjfX-t #media #streaming #entertainment #television