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Media Companies Are Ready to Sell. Does Anyone Want to Buy?

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I can see the ad as an "SNL Digital Short":

NFL Sunday Ticket:
Cheaper than a divorce! Barely!
:p
 
Want to talk about streaming subscription heartburn:
Every year I've purchased the DirecTV NFL Sunday Ticket for my wife's birthday. She's into the whole fantasy football thing.
This year NFL Sunday Ticket is only available via YouTubeTV. So, one has to subscribe to YouTubeTV which has essentially the same channel lineup as my DirecTV subscription, for $78 a month (paid for a full year in advance $960), plus $340 for Sunday Ticket. That's like $1,300 including taxes!
$78/month is far better than the $200 or so I was paying for DirecTV before I finally decided to dump them 3 years ago. I only paid $250 for Sunday Ticket. Why did you pay so much?
 
So, I went digging and it turns out I have the Disney+/Hulu/ESPN+ bundle, when I thought I only had Disney+/Hulu.

Ooooooooops.

Especially dopey since my wife and I lack the sports gene.
I found it all confusing, but I was able to get Hulu without ESPN and without Disney, saved over 60% of the cost and did not lose a single bit of content that I would have watched / streamed.

We also lack the sports gene so careful analysis of services we added during the pandemic has saved us between $80 and $90 a month. Most of the saving came from eliminating sports or sports-heavy services that were not missed.
 
$78/month is far better than the $200 or so I was paying for DirecTV before I finally decided to dump them 3 years ago. I only paid $250 for Sunday Ticket. Why did you pay so much?
DirecTV only charged $250 for Sunday ticket. Now YouTubeTV charges $350 for Sunday Ticket, on top of having to subscribe to the
regular channel lineup at $78 per month.
 
Disney agreed today to buy what it doesn't already own of Hulu.

You could smell this coming, as Disney was promoting it's programming: Watch it live on ABC, or tomorrow on Hulu.

Similar to CBS and Paramount. They had a strategy in place for Hulu. All they needed to do was settle on a price.

Now what do they sell to pay for it?
 
You could smell this coming, as Disney was promoting it's programming: Watch it live on ABC, or tomorrow on Hulu.

Similar to CBS and Paramount. They had a strategy in place for Hulu. All they needed to do was settle on a price.

Now what do they sell to pay for it?
That's easy: ABC O&O's and either a management deal for ESPN, or an LMA to buy.
 
That's easy: ABC O&O's and either a management deal for ESPN, or an LMA to buy.

Or maybe the ESPN Bet deal was worth over $10 billion:


Penn agreed to pay ESPN $1.5 billion in cash over 10 years, as well as grant ESPN $500 million of warrants to purchase approximately 31.8 million common shares of Penn.
 
You could smell this coming, as Disney was promoting it's programming: Watch it live on ABC, or tomorrow on Hulu.

Similar to CBS and Paramount. They had a strategy in place for Hulu. All they needed to do was settle on a price.

Now what do they sell to pay for it?
Byron Allen offered $10 billion for the ABC network and owned stations, FX and NatGeo six weeks ago.

 
Byron Allen offered $10 billion for the ABC network and owned stations six weeks ago.

ABC isn’t seriously going to sell their O&O’s. That was just talk. They wouldn’t get the money they want for the stations
 
If Fox and Barstool got out of sports betting, what makes ESPN think they can make this work?

Fox Bet was hampered by it's owner Flutter Entertainment which was more focused on it's owned brand, FanDuel. Barstool Sportsbook is owned by Penn Entertainment and that is the same sportsbook rebranding to ESPN Bet. ESPN/Disney isn't risking any capital to be in the sports betting game they are simply licensing the name out.
 
ABC isn’t seriously going to sell their O&O’s. That was just talk. They wouldn’t get the money they want for the stations
Oh, I definitely don't think it's just talk. Iger doesn't go public saying traditional local TV and networks have no future if he wasn't serious. If Byron is serious about $10B for a $4-5B valuation, make that deal before Byron changes his mind.
 
Nexstar has also expressed interest, but just in the ABC owned stations group. If Bloomberg and Wells are right about the valuation for the network and stations ($4-4.5B), that's not enough. The stations alone would be a fraction of that.

Byron paying $10B for ABC, owned stations, FX and NatGeo covers the Hulu tab.

 
Disney has expected (or hoped) to take over Hulu for so long I’d think they already have a plan in place to finance the purchase and don’t need to make any asset sales to buy Hulu. That doesn’t mean they might not sell any assets down the line to pay off any debt they might incur in this purchase. But large corporations don’t usually announce acquisitions and have to sell off assets before the acquisition to enable the acquisition to happen.
 
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