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Home / Business / Apple splits from Disney and AT&T gets it from every angle

Apple splits from Disney and AT&T gets it from every angle



Disney CEO Bob Iger retires from the Apple board is a big deal, not just because it shows the extent to which Apple enters Disney's business with original content, (making Iger too conflicted to be in a incipient rival board) but also because it signals how the content and distribution facets of the media business converge.

<p class = "canvas atom canvas text Mb (1

.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Media biz has always been about frenzies and evolving alliances that provide difficult navigation even in quiet times, but the current environment has been particularly marked by turmoil and the appearance of rocky hills and changing shifts. Remember Disney ( DIS ), just ask the folks at AT&T ( T ) Even Jack Sparrow will find these waters challenging. "Data-reactid =" 16 "> Media-biz has always been about frenemies and evolving alliances that provide difficult navigation even in quiet times. But today's environment has been particularly marked by the turmoil and appearance of rocky hills and changing shoals. Remember Disney (DIS), just ask the folks at AT&T (T). Even Jack Sparrow would find these waters challenging.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "When it comes to Disney, the problems come here from Apple ( AAPL ) of course, while with AT & amp; T, a Wall Street firefight and an old-fashioned wagon mass are to blame. " data-reactid = "17"> Of course, when it comes to Disney, the problems here come from Apple (AAPL), while with AT&T, a Wall Street firefight and an old-fashioned truck mass are to blame.

Let's start with Disney, and their slow burn, falls out with bestie, Apple.

I nibbled on that relationship as the Apple Watch continued to be a Toy Story motif. Annoying but sensual since Toy Story is a Pixar property (a unit of Disney), and Disney and Apple have been practically related since Steve Jobs sold Pixar to Disney for $ 7.4 billion in 2006. The stock with all shares made Jobs Disney's largest shareholder and black-turtlenecked-one sat in Disney's board.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And so a & nbsp; cozy relationship between the two companies & nbsp; that extended even to Steve Jobs & # 39; death in October 2011 and Iger joined Apple's board a month later. How cozy? Disney was the first studio to sell TV shows and movies in the iTunes store, for example, Disney refurbished their stores to make them look more like Apple, and Jobs, Iger and Tim Cook have praised each other. "Data-reactid =" 20 "> And Thus began a cozy relationship between the two companies that extended even to Steve Jobs & # 39; s death in October 2011 and Iger joined Apple's board a month later. How cozy? Disney was the first studio to sell TV shows and movies in the iTunes store, for example. Disney refurbished their stores to make them look more like Apple. And Jobs, Iger and Tim Cook have praised each other.

Now not so much.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "With the announcement of Apple TV + this week, a streaming subscription service with Apple-produced original movies and TV series, Apple has planted its flag in Disney & # 39; s turf programming is not the business of a hardware company, not a software company or platform, it is the business of a media company, Disney added. But actually, it's even more poignant than that. & Nbsp; Debuting November 1 to $ 4.99 a month, & nbsp; (and in an aggressive ecosystem exploit, free for a year if you buy an Apple device) Apple TV + comes out soon and undermines Disney's streaming service offering, arriving on November 12 at $ 6.99. " data-reactid = "22"> With the announcement of Apple TV + this week, a streaming subscription service featuring Apple-produced original movies and TV shows, Apple has planted its flag in Disney's turf. Producing original programming is not the business of a hardware company, a software company, or a platform. It's the business of a media company, let Disney. But in fact, it's even more pointed than that. Debuting Nov. 1 for $ 4.99 a month (and in an aggressive ecosystem utilization, free for a year if you buy an Apple device) Apple TV + comes out sooner, undermining Disney's streaming service offering, which comes November 12 at 7 p.m. $ 6.99.

<p class = "canvas atom canvas text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "Disney stock & nbsp; hit the news . Netflix ( NFLX ) a bit too. "Data-reactid =" 23 "> The Disney stock hit the news. Netflix (NFLX) a bit too.

Awkward!

CUPERTINO, CA – OCTOBER 27: Apple CEO Tim Cook speaks on stage during a product launch event October 27, 2016 in Cupertino, California. Apple Inc. unveiled the latest iterations of its MacBook Pro series of laptops and TV apps. (Photo by Stephen Lam / Getty Images)

Apple could buy Disney at heart

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0 , 8em) – sm "type =" text "content =" Iger acknowledged this discomfort but had characterized the flow of conflicts mainly as a potential problem since & nbsp; "has not been discussed all That's a lot of Apple executives. & nbsp; But that changed. In this flywheel era, and as the service becomes more and more important to Apple, one part of the business is increasingly linked to another, and it became unsustainable for Iger to simply retaliate from specific discussions. "data-reactid =" 46 "> Iger acknowledged this discomfort, but had characterized the flow of conflicts most as a potential issue since it" hasn't been discussed as much "by Apple executives. But that changed In this flywheel era, and as the service becomes more and more important to Apple, one part of the business is increasingly linked to another, it became unsustainable for Iger to simply withdraw from specific discussions.

< p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "(This is reminiscent of what happened in 2009 when Google ( GOOG & nbsp; GOOGL ) chairman Eric Schmidt, resigned from the Apple board when iPhone and Google's Android became massive competitors. & Nbsp; Jobs was explicit about Schmidt: & nbsp; "Unfortunately, as Google enters several of Apple's core businesses, with Android … Eric's effe As an Apple board member, he will be significantly reduced as he will have to forgo even larger sections of our meetings due to potential conflicts of interest. , we have mutually decided that now is the right time for Eric to resign the position of ition on Apple's board. ”)" Data-reactid = "47"> (This is reminiscent of what happened in 2009 when Google (GOOG, GOOGL) CEO Eric Schmidt resigned from the Apple board when iPhone and Google's Android became massive competitors. Jobs were explicit about Schmidt: "Unfortunately, as Google enters several of Apple's core businesses, with Android … Eric & # 39; s effectiveness as an Apple board member will be greatly diminished as he will have to forgo even larger portions of our meetings to Consequently, we have mutually determined that now is the right time for Eric to resign from his position on Apple's Board of Directors. ")

<p class =" canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8 cm) – sm "type =" text "content =" Let's not forget – and not suggest anything here – but with a billion dollars, Apple could buy Disney, (worth $ 247 billion) ) in a heartbeat. "We think a big acquisition is on the horizon," & nbsp; Wedbush analyst Dan Ives says on Apple . A Disney deal would be a big boost. More likely is the settlement of what had been an unusually close business. "data-reactid =" 48 "> Let's not forget – and not suggest anything here – but with a billion dollars on the market, Apple could buy Disney, (worth only $ 247 billion) in a heartbeat." We think a big acquisition is on the horizon, "Wedbush analyst Dan Ives says of Apple. A Disney deal would be a big boost. More likely is the settlement of what had been an unusually close, business buddy act.

Take & # 39; out of frenzy

To make the case even more high-profile, the Tweeter-in-chief has immediately blasted his support from Elliot's campaign (remember the POTUS hat es AT&T- property CNN and tried to block the TWX / T merger), though the president showed restraint by not suggesting that Stephenson should be replaced, say, John Bolton.

But what may sting Stephenson more than Trump's tweet is this little nugget on page five of Elliot's letter. To say: "Jeff Bewkes, CEO who sold Time Warner to AT&T, recently cited the vertical integration of content and distribution as a" fairly suspect premise. "In other words, Bewkes loaded his company into Stephenson based on a premise he now calls" quite suspect. "

Ouch. It takes" fr "out of frenemy.

<p class =" canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" The final play of this little drama? Elliott says that if AT & amp; T moves from the divide, it can "achieve $ 60 + per share of value by the end of 2021." How? It's pretty clear to me that Elliott wants T to throw himself away from DirecTV and Warner, who have started a new round of the endless guessing game for media houses. Who buys Warner (who owns the movie studio, HBO and Turner networks including CNN, TNT, TBS Cartoon Network.) Netflix "Apple? Softbank ( SFTBY )? And then what direction does Direct? T-Mobile ( TMUS ) / Sprint ( S )? " data-reactid = "82"> The endgame in this little drama? Elliott says that if AT&T moves away from the divide, it could "achieve $ 60 + per value as of the end of 2021." It's pretty clear to me that Elliott wants T to throw himself out of DirecTV and Warner, who have started a new round in the never-ending guessing game for media houses. Who buys Warner (who owns the movie studio, HBO and Turner networks including CNN, TNT, TBS Cartoon Network.) Netflix? Apple? Softbank (SFTBY)? And which direction is Direct going? T-Mobile (TMUS) / Sprint (S)?

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "All this means no rest for the weary, or should I say the investment bankers, who have to lick their chops, especially the boys and girls at Morgan Stanley ( MS ), who first made honk-you money by building TimeWarner into the largest media company on the planet, then take everything apart, then sell them to AT&T, and now maybe (please, please!) to sell them again. "data-reactid =" 83 "> All this means no rest for the weary, Or should I say the investment bankers, who have to lick their chops, especially the boys and girls at Morgan Stanley (MS), who made honk-you money first by building TimeWarner into the biggest media company on the planet, then taking it all apart, then sell it to AT&T, and now maybe (please, please!) to sell it again.

Watch this space as Elliott ramps up the Press. And bet this one won't take 10 years.

"Star Wars" filmmaker George Lucas, left, shakes hands with Walt Disney Co. Chairman and CEO Bob Iger during a dedication ceremony for the new Star Wars: Galaxy's Edge attraction at Disneyland Park, Wednesday, May 29, 2019, in Anaheim, California (Photo by Chris Pizzello / Invision / AP)

Disney plays offense

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "And to circling the square completely, and something lost with all the other storms and cravings, Disney playing offense, (not defense as in the Apple situation) and alerted subscribers of AT&T and DirecTV – Monday night football from all over – that they could losing access to Disney's networks including ESPN, ABC and Disney Channel in a good old fashioned car conflict Not much to know here other than it's about the money, but Disney becoming public as the apparent & nbsp; did AT&A mp ; T's Emotions: & nbsp; "We are disappointed to see The Walt Disney Co. put their viewers in the middle of the negotiations. "" data-reactid = "106"> And to circle around the square, and something lost with all the other storms and cravings, Disney plays offense, (not defense as in the Apple situation) and warned AT&T and DirecTV subscribers – Monday Night Football of Everywhere – that they could lose access to Disney's network including ESPN, ABC and Disney Channel in a good old fashioned carriage fight. Not much to know here other than that it's about the money. But Disney's going public seems to hurt AT & T's sentiment: "We're disappointed to see The Walt Disney Co. put its viewers in the middle of negotiations."

So to summarize: Apple's rattling Disney cage, while Disney knocks on AT&T, which takes it on the chin from Singer, who is cheered on by Trump. Imagine that you are AT&T and that Singer, Trump and Iger are coming after you all in the same week.

However, the injuries were minimal. Netflix stock was up (on a bullish note from Piper Jaffray), so was AT&T, which makes sense with Elliot to push and slide. When it comes to Disney traded down, games against Iger have never been a winning strategy.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the longer term, Disney and Apple will go their Both of their streaming services can click, (I'll bet Disney), but the market probably won't support all the offers from Netflix, Apple, Disney, Hulu, Comcast ( CMCSA ), Warner, etc. at some point, top content is really one thing. Look for consolidation or closures. When it comes to AT&T, at some point it will probably be broken up. "Data-reactid =" 109 "> In the longer term, Disney and Apple will go each way. Both of their streaming services may click, (I'd bet Disney), but the market probably won't support all the offers from Netflix, Apple, Disney, Hulu, Comcast (CMCSA), Warner, etc. At some point, top content is really one thing. Look for consolidation or closures. AT&T, at some point it will probably be broken up.

The bottom line, despite the treacherous market, these are pretty good businesses – AT & T's debt despite. I wouldn't worry about sinking ships.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Andy Serwer is chief editor of Yahoo Follow him on Twitter: @serwer . "data-reactid =" 111 "> Andy Serwer is the chief editor of Yahoo Finance. Follow him on Twitter: @serwer .

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<p class = "canvas-atom canvas- text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[19659050] Read the latest financial and business news from Yahoo Finance "data-reactid =" 130 "> Read the latest financial and business news from Yahoo Finance

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