Um, all right. Uh, moving guys from, um, new media to old media. No, I'm going to, uh, Paramount and Warner Brothers Discovery. I wanted to give people a bit of an update here and a story obviously we were talking a lot about a week ago when we first learned of the um, plan at Paramount to make an offer to buy all of Warner Brothers Discovery. Earlier this week, I'd indicated that while some had believed, and I had even uh been led to believe as well, perhaps a a said offer would be forthcoming in the near ...

Group 1 - Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company involved in producing films, TV programs, and streaming content, as well as operating networks and interactive gaming [2] - The company is currently facing significant debt, which raises concerns about its financial stability amidst potential takeover bids [1] - There is a belief that while WBD has investment potential, certain AI stocks may offer greater upside potential with less downside risk [3]

Company Overview - Versent, a spin-off from Comcast, will be listed on NASDAQ under the ticker VSNT [1] - The company emphasizes its strong capitalization, multiple revenue streams, significant operating cash flows, and robust balance sheet [2] - Versent anticipates the capacity to return capital to shareholders following the separation [2] Revenue Performance - Revenue decreased from $78 billion in 2022 to $745 billion in 2023 [3] - Revenue further declined to $7 billion in 2024 [3] - Revenue for the first six months of the current year was $34 billion [4] Cash Flow Trends - Net cash provided by operating activities decreased from $25 billion in 2022 to $24 billion in 2023 [4] - Net cash further declined to $22 billion in 2024 [4] - Net cash for the first half of the current year was $11 billion [4] Balance Sheet Highlights - Total equity remained relatively stable, decreasing from $109 billion in 2024 to approximately $106 billion [5] - Adjusted EBITDA for the year ended December 31st of last year was $28 billion, and for the first six months of this year, it was $14 billion [5]

Market Overview - Wall Street reached new record highs driven by the Federal Reserve's quarter-point interest rate cut and expectations of further reductions in upcoming meetings [2][8] - The S&P 500, Nasdaq, and Russell 2000 indices all achieved unprecedented levels, with technology stocks leading the gains [2][8] - Nvidia's $5 billion investment in Intel resulted in a significant 23.1% to 24.6% increase in Intel's shares, marking its largest daily gain since 1987 [2][8] Corporate Performance - FedEx reported a strong first quarter for fiscal year 2025, with adjusted earnings per share of $3.83, surpassing the estimated $3.59, and revenue of $22.2 billion, exceeding predictions of $21.67 billion [3][8] - The company's adjusted operating income reached $1.30 billion, higher than the expected $1.21 billion, indicating a robust start to the fiscal year [3] Capital Flows - U.S. Treasury International Capital (TIC) data for July showed a significant decline in net long-term capital inflows, totaling $49.2 billion, down from $150.8 billion in the same period last year [4][8] - Despite the monthly dip, total foreign holdings of U.S. Treasuries reached a record high of $8.339 trillion in July, up from $8.211 trillion in June [4][8] Geopolitical Developments - Former President Trump announced efforts to regain control of Afghanistan's Bagram Air Base, emphasizing its strategic importance due to its proximity to China's nuclear facilities [5][8] Technology Investments - Microsoft announced a $4 billion expansion of its data center investments in Wisconsin, bringing its total investment in the state to over $7 billion [6][8]

I don’t care about Jimmy Kimmel or MSM.When it comes to Disney and the other networks that make children’s media, hopefully they’ll start taking all the weird things out so our children can enjoy children’s content. ...

Core Viewpoint - Meta is engaging in discussions with media companies to license their articles for use in its AI tools, marking a significant shift in its approach to news content [2][3]. Group 1: Meta's Strategy Shift - Meta has held talks with media companies such as Axel Springer, Fox Corp, and News Corp regarding licensing agreements for their articles [2]. - This represents a change for Meta, which has previously deprioritized news content and had inconsistent relationships with publishers, including a decision in 2022 to stop paying publishers for news [3]. - The reduction in news priority has led to a decline in Facebook traffic for many publishers, although some have recently reported an uptick in traffic [3][4]. Group 2: Industry Context - Google's reported initiative to recruit news organizations for an AI-related licensing project indicates a broader trend in the industry, with Google aiming to pilot a project with around 20 national news organizations [5]. - AI search firm Perplexity has allocated $42.5 million for a revenue-sharing program to compensate publishers when their content is utilized by its AI tools, highlighting the ongoing discussions about fair compensation for content used in AI [6]. - Legal actions have been taken by media companies against AI firms for copyright infringement, illustrating the tensions between content creators and AI technology developers [6].

Core Viewpoint - Warner Bros. Discovery (WBD) has experienced significant stock volatility, with a recent surge driven by potential acquisition interest from Paramount Skydance, leading to a 113% gain over the past year and a 70% rally in three months [1][2][5]. Company Overview - Warner Bros. Discovery emerged from a major merger in 2022, combining various media assets and now operates as a global content leader with a market capitalization of $45.2 billion, broadcasting in 50 languages across over 220 nations [3]. - The company has faced challenges in the media landscape, particularly with its cable assets, but the recent acquisition speculation has reignited interest in its stock [8]. Recent Developments - Reports indicate that Paramount Skydance is preparing a majority-cash bid for WBD, which has led to a stock price increase of over 50% in just three trading days [5]. - A potential merger would create a streaming powerhouse with nearly 200 million subscribers and $20 billion in annual ad revenue, intensifying competition in the industry [4][15]. Financial Performance - WBD's Q2 earnings report showed revenue of $9.8 billion, a 1% year-over-year increase, and a per-share profit of $0.63, reversing a loss from the previous year [9]. - Advertising revenue fell by 10% year-over-year, while content revenues rose by 16% due to stronger theatrical releases [10]. - The streaming segment reported a rise in subscribers to 125.7 million and a profit of $293 million, contrasting with declines in advertising and distribution for its Global Linear Networks [11]. Analyst Insights - Analysts express mixed sentiments regarding WBD's future, with some highlighting the strategic sense of a potential merger with Paramount Skydance, while others caution about WBD's significant debt of $35.6 billion [17][18]. - The market's response to the acquisition news suggests that WBD's discounted valuation may be seen as an opportunity for growth if consolidation occurs [8]. - Overall, analysts maintain a "Moderate Buy" rating on WBD stock, with a mix of strong buy and hold recommendations among 26 analysts [18].

Group 1 - Meta Platforms has engaged in discussions with various media companies for licensing articles to enhance its AI products [2] - The media companies involved in the discussions include Axel Springer, Fox, and News Corp [2] - The discussions are part of Meta's strategy to integrate more content into its platforms, specifically Instagram and WhatsApp [2]

Core Insights - Disney is transitioning from its traditional linear networks to focus on streaming, recognizing the permanence of this shift in consumer behavior [1][2][15] - The company's stock performance has lagged behind the S&P 500 over the past decade, with only an 11% increase compared to a 236% return for the index [3] - Disney's parks and cruise businesses are thriving, offsetting declines in its cable segment [2][8] Company Evolution - Disney has a history of innovation, from the release of the first feature-length animated film in 1937 to significant acquisitions like Pixar, Marvel, and Lucasfilm [4] - The company is currently investing heavily in its experiences segment, forecasting $60 billion in capital expenditures over the next decade [8][17] - Disney's strategy includes launching an ESPN streaming app, which will generate revenue but further impact its cable business [8] Market Position - Disney is not a high-margin streaming giant like Netflix but is more diversified and innovative compared to traditional media companies like Comcast [9] - The company is adapting to changes in the entertainment landscape, similar to how Alphabet is embracing AI [6][9] Investment Perspective - Both Disney and Alphabet are seen as balanced buys for long-term investors, appealing to those looking for growth and value [16][17] - Disney's stock is considered a good value at under 20 times forward earnings, despite challenges in the consumer discretionary sector [17]

Core Viewpoint - Disney is discontinuing Jimmy Kimmel's late-night show on ABC following his comments regarding the death of conservative activist Charlie Kirk [1] Group 1 - Disney's decision reflects the company's response to controversial remarks made by a prominent host [1] - The action may indicate a shift in content management and public relations strategy within the company [1]