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. 🤷

Another “Space Race” Failure

Space companies are a big craze among investors. After all, the vast depths of space present vast opportunities for profit…right? Unfortunately for investors, the equation hasn’t been that simple. 😢

First, let’s start with Astra Space, which came public via a special purpose acquisition company (SPAC) in early 2021. At the time, the company raised $500 million in cash at a $4.1 billion valuation, hoping to achieve its goal of cheaply and rapidly producing small rockets. 🚀

Read It

Goodbye SPACs, Hello SPARCs?

While investors have certainly cooled on the idea of special purpose acquisition companies (SPACs), famous hedge funder Bill Ackman is betting they may be open to his spin on the investment vehicle. 🧠

A SPARC is a special purpose acquisition rights company, which operates like a SPAC, acting as a shell to combine with a private company and take it public. However, with a SPARC, investors will know what company the financing vehicle would be used to merge with before they pledge their investments.

Read It

Bonds Make History

While stocks are getting all the attention lately, bonds are making history. Well, one bond ETF is. 👀

Vanguard’s Total Bond Market ETF ($BND) is the first bond exchange-traded fund to cross $100 billion in assets under management (AUM). That’s despite a massive bond rout over the last eighteen months, where prices have been pummelled in the face of higher interest rates.

Read It

Siemens Seeks Support

Roughly four months after we last discussed Siemens Energy, the company is back in the news. 📰

Before getting into today’s news, the energy giant made headlines in June after scrapping its profit forecast and warning that major setbacks at its wind turbine subsidiary (Siemens Gamesa) could last years. That sent shares tumbling 37% in about two days, also pressuring Siemens AG, which owns about 35% of the company.

Read It