Seeking Alpha
 

Comcast Corporation (CMCSA)

- NASDAQ
  • Thu, Apr. 30, 3:47 PM
    • With Comcast's (CMCSA -1.2%) pursuit of Time Warner Cable (TWC -1.4%) dashed on the rocks, TWC and Charter Communications (NASDAQ:CHTR) have (separately) contacted Bright House Networks in the past week about acquiring them, The Wall Street Journal is reporting.
    • With about 2M subscribers, Bright House is sixth-largest among cable MSOs. Charter had a deal to acquire Bright House a month ago, but that was contingent on the Comcast-TWC combo, so they need to start again during a 30-day "good faith" cycle.
    • Time Warner Cable's interest in adding Bright House could be in making itself much tougher to acquire, and it would likely make the owning Newhouse family the biggest shareholder of the combination. In a deal with Charter, John Malone and Liberty Broadband (NASDAQ:LBRDA) would have the biggest voting stake.
    • Meanwhile, TWC has deep ties to the Newhouse company -- TWC negotiates Bright House's programming and technology deals for a fee, and has right of first offer on the Newhouses' cable systems, the WSJ notes.
    • Previously: TWC misses on earnings, logs best subscriber quarter (Apr. 30 2015)
    • Previously: CNBC: Charter, TWC to discuss merger next week (Apr. 29 2015)
    | Comment!
  • Wed, Apr. 29, 2:31 PM
    • CenturyLink's (CTL -1.3%) plans to get TV franchises in a number of cities and suburbs may bring it into competition with Comcast (CMCSA -0.9%) in one in particular.
    • The Minneapolis city council should have a final vote on giving CenturyLink a TV franchise in May, giving the company a fight with the country's biggest MSO for TV viewers.
    • CenturyLink's location rollout plans are secret, but in order to pursue the franchise it pledged to make its PRISM TV service available to at least 15% of the city within two years.
    • If the deal is approved, the franchise would be for only five years vs. Comcast's 12-year deal, allowing the city to take it up again.
    • CenturyLink recently launched similar service in Denver and it's looking for a franchise in Portland, which could bring it into competition with Google Fiber.
    | Comment!
  • Wed, Apr. 29, 10:25 AM
    • At its upfront presentation for 2015, Hulu confirms it has acquired rights to the episode library of '90s hit Seinfeld, as well as signed an exclusive deal with AMC Networks (NASDAQ:AMCX) for The Walking Dead spinoff Fear the Walking Dead.
    • Seinfeld will premiere in June on Hulu after the service outpaced competing bidders including Amazon.com and Yahoo (NASDAQ:YHOO), as well as Netflix, which bowed out early.
    • That deal was widely watched as it's expected to cost as much as $180M -- Hulu's biggest ever. While Sony Pictures Television (NYSE:SNE) sold the distribution rights, much of that take will head to Time Warner (NYSE:TWX), which owns the show's producer, Castle Rock Entertainment, and will continue to hold rerun rights on TBS.
    • The AMC deal also means content from IFC, Sundance TV, BBC America and We TV -- meaning IFC films will also be on Hulu.
    • Hulu -- co-owned by NBCUniversal, Disney and Fox (CMCSA, DIS, FOXA) -- says it's consolidated its two brands and so will be phasing out "Hulu Plus."
    • Previously: A Jerry big deal: 'Seinfeld' near streaming agreement (Mar. 14 2015)
    | 11 Comments
  • Tue, Apr. 28, 8:59 PM
    • AOL and NBCUniversal (NASDAQ:CMCSA) have signed a distribution deal that significantly expands AOL's licensed content using NBC's collection of properties from across broadcast and cable.
    • Specific content wasn't spelled out but it will include programming from NBC as well as cable nets like MSNBC, Bravo, CNBC, Oxygen, and USA Network, among others.
    • AOL will begin to stream clips and segments this summer through its various platforms, and eventually the deal may evolve into AOL "brand experts" appearing on NBC platforms, and the two companies working on original Web video series together.
    | 2 Comments
  • Tue, Apr. 28, 8:42 PM
    • During T-Mobile's (NYSE:TMUS) Q1 earnings call, colorful CEO John Legere took another opportunity to hint at the tie-up that increasingly seems to be in the company's future: with a cableco that offers broadband.
    • Just days after FCC opposition killed the Comcast-TWC merger, Legere pointed to the need to counterbalance AT&T (NYSE:T) and Verizon (NYSE:VZ), which combine wireless service with broadband offerings and even TV business.
    • Regulators seem to be opposed to cable-cable deals, and wireless-wireless deals like aborted plans for a Sprint (NYSE:S) merger with T-Mobile -- but Legere notes a natural fit may occur across industries: "The tangential players are touching mobile players in a way that makes a go-to-market strategy."
    • Analyst Craig Moffett urges caution, as regulators might already see the two industries as competition. "Wireless broadband is clearly the FCC's best hope for a counter to cable's wired advantage. They might decide that they aren't ready to allow a combination like that."
    • Possible cable suitors: CMCSA, TWC, CHTR, CVC
    • After earnings today, TMUS -0.3%.
    • Related: T-Mobile US (TMUS) Q1 2015 Results - Earnings Call Transcript (Apr. 28 2015)
    • Previously: T-Mobile grows Q1 revenues 13%, adds 1.8M subscribers (Apr. 28 2015)
    • Previously: T-Mobile keeps fanning Dish partnership flames (Mar. 06 2015)
    | 21 Comments
  • Tue, Apr. 28, 1:28 PM
    • In the latest of a string of millennial-friendly moves, Cablevision (NYSE:CVC) has agreed to become the first pay TV provider to distribute the Hulu service to its Optimum customers.
    • "The partnership with Hulu reflects Cablevision's desire to meet customers where they are," says Cablevision COO Kristin Dolan.
    • Pricing and time frame aren't yet announced. Hulu -- jointly owned by NBCUniversal, Disney and Fox (CMCSA, DIS, FOXA) -- offers its Hulu Plus product for $7.99/month and offers current programming from five broadcast networks as well as a back catalog of many series as well as classic films.
    • Previously: Cablevision intros 'cord-cutter' broadband package (Apr. 23 2015)
    • Previously: Cablevision becomes new launch partner for HBO Now (Mar. 16 2015)
    | 3 Comments
  • Mon, Apr. 27, 8:25 PM
    • After fighting off a hostile bid from Charter Communications (NASDAQ:CHTR) just over a year ago, Time Warner Cable (NYSE:TWC) is now open to merger talks with the cableco now that Comcast (NASDAQ:CMCSA) has called off its $45B friendly pursuit, Reuters reports.
    • One key change from before: TWC now views Charter stock as more valuable this time around. CHTR shares are up 40.7% over the past 12 months.
    • Still, the deal would have to be significantly sweeter as well. Charter's previous hostile bid for TWC was for about $132.50/share; Comcast's $45B offer was valued around $158.82/share.
    • As for competitive concerns, Charter/TWC would have about 15M video customers, whereas Comcast/TWC would have had about 30M.
    | Comment!
  • Mon, Apr. 27, 1:13 PM
    • Romantic fantasy The Age of Adaline (NYSE:LGF), starring Blake Lively, earned $5M at the box office on Friday, just ahead of Furious 7's $4.9M -- then the rest of the weekend happened, and Furious 7 (NASDAQ:CMCSA) became the first film to lead domestic box office for four straight weeks since 2012's The Hunger Games.
    • The racing film took in $18.3M to run its domestic total to $320.5M.
    • Paul Blart: Mall Cop 2 (NYSE:SNE) took second place with $15.5M in its second week, and The Age of Adaline drew $13.4M in total, just ahead of Home's (NASDAQ:DWA) $8.3M.
    • Furious 7's $1.3B global take makes it the fifth-highest grosser in history. Next up: Harry Potter and the Deathly Hallows: Part 2 at $1.34B.
    • Meanwhile, the film that will topple Furious 7 next weekend has already made a small mint overseas. Avengers: Age of Ultron drew $201M in overseas grosses (in only 55% of the global market) ahead of its May 1 U.S. release, presaging a massive haul for the Marvel (NYSE:DIS) sequel.
    • Its predecessor, Marvel's The Avengers, earned a record $207.4M domestically in its debut weekend in 2012.
    | 3 Comments
  • Fri, Apr. 24, 9:15 AM
    • Comcast (NASDAQ:CMCSA) is trading up 1.3% premarket, and Time Warner Cable (NYSE:TWC) is 0.8% higher as well, after confirmation that their $45B merger deal is dead.
    • In statements by the Justice Dept. and FCC thanking each other for their cooperation, it's clear that FCC Chairman Tom Wheeler was against the deal, which would have made agency approval a very long shot.
    • It's also clear why Wheeler was opposed: It's about broadband, not cable, and protecting the burgeoning streaming video market. "The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services."
    • While Comcast doesn't pay a breakup fee with the deal's end, that doesn't mean everyone walks away cheaply: Advisers including bankers and lawyers will lose out on $380M in fees, chiefly Goldman Sachs (NYSE:GS), banker for Charter Communications (NASDAQ:CHTR). J.P. Morgan Chase (NYSE:JPM) will drop from second to third in the league tables. As a mitigating factor, more deals are likely on the way, though.
    • Other sector players premarket: AT&T -0.3%; Verizon -0.2%.
    | 4 Comments
  • Fri, Apr. 24, 8:34 AM
    • After a late Thursday board meeting, Comcast (NASDAQ:CMCSA) has confirmed it's dropping its $45B plan to acquire Time Warner Cable (NYSE:TWC) -- a stunning reversal of a 15-month plan, which got less stunning as hurdles began to mount in recent weeks.
    • "Today, we move on," says Comcast CEO Brian Roberts. "Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn't agree, we could walk away." It's a cheap walk-away for Comcast, which had no breakup fee in the deal.
    • What next? Consolidation is still likely in a deeply uncompetitive industry. Other companies are now officially front and center in pursuit of TWC, notably John Malone's Charter Communications (NASDAQ:CHTR), which could re-launch its own failed effort. CHTR-TWC would have 16.5M broadband subscribers together, less than Comcast's 22M.
    • Charter's deal with Comcast aimed at divestment and easing the Comcast-TWC transaction also blows up. What about Charter's deal to acquire Bright House?
    • As for Comcast, it could take its stored-up momentum outside of cable -- to someone like Netflix (NASDAQ:NFLX), as BTIG's Rich Greenfield hints? Or to a telecom like T-Mobile (NYSE:TMUS)?
    • Updated: Time Warner Cable statement. "We have always believed that Time Warner Cable is a one-of-a-kind asset," says Chairman and CEO Robert D. Marcus. "We are strong and getting stronger."
    | 23 Comments
  • Thu, Apr. 23, 8:54 PM
    • Vin Diesel let the news slip at CinemaCon in Las Vegas: Furious 8 will get made and hit theaters April 14, 2017.
    • The Universal (NASDAQ:CMCSA) film series might've been considered finished after the 2013 death of star Paul Walker in an auto crash, but at more than $3B in total worldwide gross for the seven., it's a key asset for the studio and parent Comcast.
    • In other blockbuster news for the media giant, it also scheduled its sequels to Fifty Shades of Grey, which has made more than $568M worldwide. Fifty Shades Darker will be out Feb. 10, 2017, and Fifty Shades Freed will roll out Feb. 9, 2018. The first film's Valentine's Day placement kicked off a banner year so far for Universal; the studio must figure: Why mess with success?
    • Diesel putting a date on a new Furious is confirmation -- but it may not be too shocking that another film would come at some point: Deep into this run of sequels, Furious 7 is the most successful of the films, crossing $1.15B in worldwide grosses and becoming the seventh-highest grossing film (nominal terms) of all time.
    • Previously: Universal Pictures crosses global $1B mark in record time (Apr. 08 2015)
    | Comment!
  • Thu, Apr. 23, 5:21 PM
    • Verizon (NYSE:VZ) says that Walt Disney (NYSE:DIS) -- one of a group of program providers that claim Verizon's new slim cable packages violate their contracts -- is refusing to carry Verizon's ads for the new packages.
    • NBCUniversal (NASDAQ:CMCSA) and Twenty-First Century Fox (FOX, FOXA) joined Disney this week in saying that Verizon's plan to let subscribers choose smaller, cheaper bundles violated their carriage agreements. Verizon CFO Fran Shammo said firmly that the company wouldn't retract the product.
    • Fox and NBC haven't pulled the ads so far. Disney owns the ABC Network as well as the ESPN networks.
    • The new Verizon plans, designed to offer more variety than large one-size-fits-all bundles, start at $55/month for a smaller channel lineup. They're available on Verizon's FiOS service, which has 5.7M TV subscribers.
    • Previously: Disney: Not so fast on skinny bundling, Verizon (Apr. 17 2015)
    | 5 Comments
  • Thu, Apr. 23, 3:09 PM
    • Bloomberg reports Comcast (CMCSA +2.2%) plans to drop its hotly-contested efforts to merge with Time Warner Cable (TWC +0.7%), and could make an announcement as soon as tomorrow. Comcast has moved higher in response.
    • The report comes a day after the WSJ reported the FCC staff recommends a hearing on the deal, and a week after Bloomberg reported DOJ antitrust lawyers are leaning against it.
    • Charter (CHTR +0.4%), which has suggested it's interested in TWC if the Comcast deal falls through, has moved slightly higher.
    | 9 Comments
  • Wed, Apr. 22, 9:19 PM
    • A key setback for Comcast's (NASDAQ:CMCSA) $45B takeover of Time Warner Cable (NYSE:TWC) as FCC staff has recommended that the agency designate a hearing -- what some regulatory experts call a "deal-killer," The Wall Street Journal reports.
    • A "hearing designation order" would put the merger in the hands of an administrative law judge, and while Comcast would be able to keep making its case, it would be a strong sign the FCC doesn't see the merger to be in the public interest.
    • Earlier, Comcast execs sat down with the Dept. of Justice and the FCC in hopes of salvaging a deal that is running into significant hurdles at the government level.
    • Previously: Comcast-TWC deal moves to Capitol Hill in day of talks (Apr. 22 2015)
    | 12 Comments
  • Wed, Apr. 22, 7:15 PM
    • "There are essentially three options: OK the deal, negotiate a consent decree to impose conditions, or sue to block the deal. The first is not in play," says media lawyer Andrew Jay Schwartzman to CNN about the now somewhat shaky $45B Comcast-Time Warner Cable (CMCSA, TWC) merger deal, following a marathon day where Comcast executives sat down with the Justice Department and then the FCC.
    • Comcast issued a statement saying it's not appropriate to share the content of the meetings.
    • With no breakup fee, there's less disincentive for Comcast to up and walk away from the deal, which has been more than a year in the making. But that would depend heavily on whether the government sues to block the deal, or just seeks concessions to make it happen.
    • Comcast's new sweetener is promising to expand its low-income "Internet Essentials" program that offers $10/month broadband to qualified households. Another statement from the company came today to "set the record straight" on the program, saying that critics are recycling old claims. (This must include articles like this one, referring to IE as Comcast's merger "trump card" and proclaiming it "bullcrap.")
    • Critics say that while Comcast claims it's "one of the most successful, if not the most successful, private sector initiatives to close the digital divide ever," the company has signed up just 13.4% of 2.6M eligible households.
    • Previously: Reuters: FCC staff sets Wednesday briefing on Comcast-TWC (Apr. 21 2015)
    | 1 Comment
  • Wed, Apr. 22, 3:24 AM
    | 1 Comment
Visit Seeking Alpha's
CMCSA vs. ETF Alternatives
Company Description
Comcast Corp is a media and technology company. The Company's business segments are: Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks.
Sector: Services
Industry: CATV Systems
Country: United States