Yvo S.’s Post

Simpsons Comic Book Guy: "Worst merger EVAAAR" Discovery was a terrible pairing with Warner Bros. HBO has been deprioritized. Warner Bros Pictures has lost reputation due to film cancellations. Shows and films have been unceremoniously off of what was HBO max if they weren't instant hits. And Zaslav's greatest contribution was to building the notion of "MAX" as a brand. Seriously? Was his other option "PLUS"? And now? The brilliant idea of the banks to save WBD is that WBD pull an Embracer and spin off its linear TV into a debt holding company. Did they just go so low as to make me miss Warner Brothers under AT&T?! ----- Hollywood Reporter: "Layoffs Hit Warner Bros. Discovery Again. The layoffs impacted several divisions across the company including finance division, production and in business affairs." (JULY 16, 2024) Hollywood Reporter: https://lnkd.in/gx835uTJ ----- David Zaslav is making more while doing less as Warner Brothers stock drops in value by 30% year on year. ----- Hollywood Reporter: "Warner Bros. Discovery CEO David Zaslav’s 2023 Pay Package Rises to $49.7M. The company disclosed latest annual compensation details for its top executives." (APRIL 19, 2024) "The rise in compensation was due in part to a decision by WBD to change its executive compensation plan to focus on cash flow, rather than stock price. In 2023 WBD’s free cashflow rose in part due to the Hollywood strikes, which shut down productions for months." Hollywood Reporter: https://lnkd.in/gRwmdkne ------ "Bank of America Analysts: Warner Bros. Discovery “Is Not Working,” Should Explore Strategic Options. A team of Wall Street pros throw kindling on the speculative M&A fire, suggesting that the David Zaslav-led company should spin off its linear TV brands into a new company saddled with debt." (July 16, 2024) "Warner Bros. Discovery has been facing its own questions about whether its asset mix — born of a $43 billion spinoff of Warners properties from AT&T to Discovery in 2022 — makes sense in a shifting entertainment landscape where a collection of linear cable brands like TNT, TBS, HLN, etc., is ill-suited to rapid cord-cutting and an industrywide march toward streaming. The report, titled “Is Unbundling the Answer?”, posits a few scenarios, including asset sales — BofA thinks CNN, for example, could potentially be worth $6 billion if spun off, which would be a prize asset to complement Warners’ streaming properties and large portfolio of cable channels." But the Bank of America team also spends time on a scenario that doesn’t involve an outright sale of the entire company or a streaming partnership or one-off asset sales — they suggest that Warner Bros. Discovery could spin off all its linear assets into a separate holding company saddled with an estimated $40 billion in debt so that the core of the company can return to growth." Hollywood Reporter: https://lnkd.in/gHJvCitv #hollywood #streamingwars #wbd #warnerbrothersdiscovery #badmna

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.

Another Media Mega Merger Goes Sour as Warner and Discovery Plot Breakup - "Warner Bros Basically Admits its Merger with Discovery Did Not Work!" Too many streaming services has been a long-standing problem in the media industry, and not long ago the preferred solution of Wall Street was consolidation. Big media mergers would create powerhouse players with must-have content, the theory went. AT&T made waves with its purchase of Time Warner, only to later sell that business to Discovery. Now the company is reportedly considering unwinding the merger, spinning off the declining cable networks from the Max streaming service, HBO premium network, and Warner Bros. movie studio. This plan is complicated by the fact that the company’s cable channels, while certainly in decline, still generate a lot of cashflow that funds other operations. Simply making the company’s declining assets disappear into a new company may be a bit too good to be true. #freecast #nextgenstreaming #streamingwars #nomoreappdiving https://lnkd.in/eUj3u-eq

In 2016 I briefly developed a project based on the great book "Makers and Takers" By Rana Foroohar. The book is all about the “financialization of America”—the phenomenon by which finance and its way of thinking have come to dominate every corner of business—and it's threat to the American Dream. The media industry is a stark illustration of financialization's impact. The merger and acquisition frenzy, particularly involving Warner Bros. Discovery, showcases how the quest for short-term profits can destabilize even established giants. The $43 billion spin-off of Warner properties from AT&T to Discovery in 2022 is under scrutiny, with analysts suggesting strategic alternatives like asset sales, restructuring, or mergers to create more shareholder value. According to the article below, Discovery could spin off all its linear assets into a separate holding company saddled with an estimated $40 billion in debt so that the core of the company (its Warner Bros. studios and direct-to-consumer assets) can return to growth. "Wall Street thinks that this new, spun off company comprised of linear TV assets could become a vehicle to roll up the rest of linear TV assets across the industry, noting that Disney, NBCUniversal and AMC Networks and others have channels that they could shed. " So basically linear TV becomes a niche market, saddled with debt, producing much less new content, like a new zombie cable service :) What's certain is a continued rocky road ahead for the media industry.... https://lnkd.in/dacH3CYq

From the NYT: The moguls are orchestrating corporate maneuvers that could usher in a sweeping reordering of the media industry in 2025. Among them are the leaders of Warner Bros. Discovery, the parent company of CNN; Comcast, the owner of NBC; and John Malone, the influential investor behind Live Nation Entertainment. In addition, Paramount, the owner of MTV and Nickelodeon, could soon have a new owner in David Ellison, who has access to billions of dollars in capital that could be used to strike additional deals. The starting gun went off in October, when Comcast’s president, Michael Cavanagh, said the company was exploring a spinout of its cable networks, which include Syfy, USA and MSNBC, into a new company. Analysts expect the as-yet-unnamed company to go on a shopping spree, buying up smaller cable networks and peeling off channels from rivals. Mr. Malone, the cable pioneer with stakes in many major #entertainment companies, went next. In November, he replaced his longtime chief executive, Greg Maffei, in tandem with a sale of the broadband business Liberty Broadband and a spin out of @Liberty Lve, a major shareholder in the concert promoter Live Nation. On Thursday, Warner Bros. Discovery announced it was planning to reorganize its company into two big divisions, lumping its traditional TV networks into one group and its streaming and studio businesses into another. “The climate for deal making is going to be really strong in 2025 for a lot of reasons,” said Reed Phillips, the co-founder and chief executive of Oaklins, an investment bank for media, marketing and #technology. “It’s a combination of a good economy, the uncertainty about the election being resolved, and there are a lot of companies that need to show growth again so that they themselves are attractive to investors.” There is no shortage of smaller companies for these media mammoths to scoop up. The decline of traditional cable has created a clutch of small #TV companies trying to navigate the industrywide transition to video #streaming. Those players, including AMC Networks, Hallmark Media and A&E Networks, are potential targets for the likes of Comcast and Warner Bros. Discovery. There are also new players coming onto the scene that are interested in acquiring media companies. Antenna, a media company that owns a stake in the Saudi broadcaster MBC, has been exploring deals for English-language media companies, including The News Movement. Redbird IMI, a #media company backed by the United Arab Emirates and run by the former CNN chief executive Jeff Zucker, recently tried to purchase The Telegraph, the British newspaper. Wall Street bankers have been gearing up for the prospect of a deal spree following the election of Donald J. Trump “It may offer a pace of change and an opportunity for consolidation that may be quite different, that would provide a real positive and accelerated impact on this industry that’s needed,” Mr. Zaslav said.

🚀 Rise of the Regulators: How Government Oversight is Changing the Media Landscape 🌟 🛑 Regulatory Hurdles: Government regulators are pumping the brakes on megamergers in the media industry, signaling a shift away from unchecked consolidation. 🚦 👀 Eyes on Hollywood: With increased scrutiny from regulators, big tech companies and media giants alike are facing challenges in pursuing growth through mergers and acquisitions. 🕵️♂️ 💥 Impact on Creativity: Writers and creators are feeling the effects of consolidation, with fewer opportunities and less leverage in negotiations. 📝 🔍 Saving the Studio System: Despite backlash, regulatory interventions may ultimately protect the integrity of the studio system and preserve competition in the industry. 🛡️ 🤔 Food for Thought: As the landscape evolves, studios must rethink their growth strategies and prioritize profitability over scale. 💡 Stay tuned as we navigate these changes and adapt to the new era of Hollywood! 🎬✨ #Hollywood #Megamergers #RegulatoryChanges #CreativeIndustry #freecast🌟🎥

Is Comcast new move, the right one? Comcast has been battling cord-cutting for years, and this week, it announced plans to spin off several NBCUniversal cable TV networks into a new publicly traded company. Key points include: 🔸 Networks Involved: The spinoff will include USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel, along with digital assets like Fandango, Rotten Tomatoes, GolfNow, and Sports Engine. 🔸 Retained Assets: Comcast will retain NBCUniversal's broadcast and streaming properties, including NBC Entertainment, NBC Sports, NBC News, Bravo, Telemundo, theme parks, and film and television studios. 🔸 Financial Context: The spun-off assets generated approximately $7 billion in revenue over the past year, while Comcast's total revenue was about $123 billion. 🔸 Leadership of New Entity: Mark Lazarus, chairman of NBCUniversal Media Group, will serve as CEO of the new company, with Anand Kini as CFO and COO. 🔸 Strategic Rationale: The spinoff aims to provide the new entity with financial flexibility and a dedicated management team to pursue growth opportunities significantly as the industry shifts toward streaming models. 🔸 Timeline and Structure: Comcast plans to complete the tax-free spinoff within a year, and the new company will adopt the same dual-class share structure as Comcast. 🔸 Ownership Structure: Comcast CEO Brian Roberts will hold a significant voting stake in the new company. 🔸 Potential for Expansion: The new company may explore acquiring other cable channels to enhance its market position. This strategic move aims to position Comcast and the new entity - named SpinCo for now- for growth in the evolving media landscape. After the trust issue from previous election results, do you believe a new cable channel spin-off is the best decision for growth? #churn #cable #belllabsconsulting

🎥 The Studio Merger of the Year: What It Means for Hollywood and Beyond The power plays shaping Hollywood’s future aren’t just about who’s signing deals—they’re redefining how studios, talent, and audiences interact. This year’s biggest studio merger is a testament to innovation and adaptability in an ever-changing industry. The question remains: how will these shifts shape the future of entertainment and the customer experience that drives it all? Let’s dive in. https://lnkd.in/gr9QYT4H

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

📈 The media landscape is poised for significant mergers and acquisitions (M&A) activity in 2025, driven by the contrasting trends of rising streaming services and declining traditional TV viewership. Major corporate deals, such as Skydance Media's acquisition of Paramount Global and Comcast's spinoff of its cable networks, highlight industry players' efforts to adapt to a streaming-centric world. Warner Bros. Discovery is also preparing for M&A, reorganizing into two divisions to enhance its competitive positioning. 💼 With a more favorable regulatory environment anticipated under the incoming Trump administration, industry sentiment is optimistic for M&A growth. Warner Bros. Discovery's CEO David Zaslav has indicated that the restructuring will create opportunities for transactions that could enhance shareholder value. This shift reflects a broader industry trend where companies are moving from defensive strategies to more aggressive positions to capitalize on emerging opportunities. 💰 A significant factor fueling potential media deals is the record amount of uninvested capital, estimated at $2.62 trillion, available for investment. This "dry powder" could lead to increased deal-making as companies seek strategic acquisitions to bolster their market presence. Additionally, joint ventures between streaming services are being considered as a way to address consumer subscription fatigue and maximize content investments. 🔄 As the industry evolves, the rationalization of the streaming sector is becoming increasingly apparent. Companies like WBD and Comcast are exploring partnerships to create comprehensive streaming bundles that could reduce churn and enhance user engagement. The urgency for results in this rapidly changing environment underscores the need for innovative strategies that can effectively navigate the complexities of today's media landscape. #TV #streaming #media