Evan, it could be you.
Yes, after reading this, you certainly should question whether they will "walk the walk."
But I read this article, and several others like it, and even from just this piece, I didn't get the impression that all they cared about was costs and that there was no vision for the future.
To the contrary, it appears they made several points today...
#Kids - They are willing to invest more in kids' content and bring Skydance Animation and Nickelodeon together.
#Sports - They said they would be a buyer, not a seller, of sports and look to grow the CBS Sports property.
#Bundle - No details here, as one would expect, but they said they are seeking partnerships and anticipate being a part of a bundle in the future. It doesn't portend success, but it doesn't preclude it either.
#Tech - Ellison made it a point to say they needed to improve their tech and become a first-class platform.
#Focus - They seem to approve of getting rid of non-core stuff, which if you have a vision, allows you to focus and invest more in the future—even if that means having to pay off some debt with it.
#Linear - Shell (he's back???) talked about linear, and how he wants to leverage it, not just cash cow it, along with streaming, to continue extracting value, even if it's declining—particularly by using it to its advantage in acquiring sports rights.
Obviously, I have many issues with what might go down as the biggest Nepo-baby transaction in the history of media!
However, I'd be hard-pressed to summarize their pitch to investors today as stemming from the Zaslav school of thought.
Sure, they were murky on the details, as is every major merger in the history of major mergers.
But if we're going to judge them by today's talk, they talked the talk.
Now they've gotta—well, you know...
Reboot.
It’s a merger whose main thesis is “CUT COSTS” - as designed by very traditional Media minds, on an already heavily diced and sliced organization.
Nowhere do the architects explain how the revenue of the “new whole” will be greater than the sum of all its parts. No one mentions a plan to invest for growth.
Haven’t we seen this movie before? I don’t mean Mission Impossible. I mean Disco Bros. Since merger, THAT hole has consumed 75% of the value of its parts.
This COULD all turn out well - if it actually closes. But this 👇 piece feels (to me) widely and incredibly familiar. Like history repeating itself in slow-fast motion.
Could just be me tho.
https://lnkd.in/eBVpw-rm
Paramount Skydance Warner Bros. Discovery