Disney & Charter Come Back Online

After a roughly ten-day cable blackout, Charter Communications and Disney put aside their differences to bring football back to fifteen million households nationwide. 🏈

The deal’s terms can be summarized as:

  • Charter will pay Disney higher rates to carry its TV channels
  • Ad-supported Disney+ will be available to Spectrum TV select subscribers
  • Ad-supported ESPN+ will be available to Spectrum pay-TV subscribers
  • Charter pay-TV subscribers will also receive Disney’s direct-co-consumer (DTC) ESPN version

The central sticking point was around the streaming services, which Charter wanted to be included and Disney did not. This appears to be a happy medium as the available ad-supported versions will still allow Disney to monetize the new “free users” acquired from Charter. 🤝

However, based on comments from both companies, it appears Charter got the better end of the deal. 🤔

Charter CEO Chris Winfrey said, “The deal sets the framework for what should be developed throughout the entire industry…” and Disney’s willingness to meet Charter halfway gives the entertainment giant an opportunity to transform the video business model.”

Meanwhile, Disney Entertainment’s co-chairman Dana Walden said, “We are prepared to make trade-offs to focus on those priorities…” when referring to the new price terms for its TV channels and a boost in distribution for its streaming services.

And the market seems to agree with that sentiment for now. Although both stocks were up on the day, $CHTR shares gained about 3x more than $DIS, which continues to sit near nine-year lows. 📊

For now, it looks like Disney and other media players who paid up for NFL and other sports rights don’t have as much leverage over the traditional cable providers as they thought. At least not yet. 🤷

Biotech Buyout Spree Continues

It may be the last week of the year, but many companies are rushing to get deals done before year-end. Two significant transactions in the biotech space were announced today, so let’s dive in. 👇

The first deal involves RayzeBio, which raised $358 million via an initial public offering (IPO) just three months ago. However, its time as a public company is being cut short by Bristol Myers Squibb, which is acquiring the radiopharmaceutical therapeutics company for $62.50 per share in cash. 💰

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DWAC Bounces Back (Again)

We mentioned last week that investors were preparing for a politically driven 2024, and boy, that accelerated quickly. 😜

Trump-linked stocks Digital World Acquisition Corp, Phunware, and Rumble jumped sharply today after Ron DeSantis canceled his presidential run.

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A Chip Off The Holiday News Flow

It’s a slow week in the market, but as usual, there’s some news out of the semiconductor space. Let’s take a look. 👀

First up is Israel granting Intel $3.2 billion to support the company’s biggest investment in the country. Intel will not only build a $25 billion factory that creates thousands of jobs but will also buy $16.6 billion in goods and services from Israeli suppliers over the next decade. It is anticipated that the plant will open in 2028 and operate through at least 2035. 🏭

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Chinese Smartphone Maker Unveils EV

Chinese smartphone giant Xiaomi is entering the highly competitive electric vehicle (EV) market, revealing its first electric car this weekend. 👀

The consumer electronics company unveiled its SU7 sedan, which it says it spent more than $1.4 billion to develop. The vehicle is set to roll out in China next year and is attempting to do something Faraday Future and other competitors have failed to do: create a software-focused vehicle that matches the technology people find in their phones to what’s happening in their cars. 

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