Tag Archives: googl

Why Comcast May Covet DreamWorks For China, Millennial TV Content

Comcast ’s ( CMCSA ) interest in acquiring DreamWorks Animation ( DWA ) likely goes beyond movies and stretches to content for Web TV streaming services, especially programming targeted at millennials. In addition, both DreamWorks and Comcast, which owns NBCUniversal, have been expanding in China. Comcast has been racing against Verizon Communications ( VZ ) to make investments in original content for millennials, aged 18 to 34. Millennials spend more time watching Netflix ( NFLX ), Alphabet ‘s ( GOOGL ) YouTube and social video on Facebook ( FB ) than they do viewing traditional TV, according to studies. DreamWorks stock surged 18% to 32, hitting a two-year high, in midday trading in the stock market today on reports that Comcast is in talks to acquire the movie studio. Comcast did not directly comment on the DreamWorks speculation during its Q1 earnings conference call early Wednesday. “DreamWorks has a robust TV business, owns (millennial-focused) AwesomenessTV and has access to China via DreamWorks Oriental,” said Stan Meyers, a Piper Jaffray analyst, in a research report. “Comcast management has discussed launching a number of (Internet video) services, so we believe teaming up with DreamWorks would provide access to exclusive content.” Verizon in early April acquired a 24.5% stake in DreamWorks’ AwesomenessTV for $159 million. Both Comcast and Verizon have been pursuing original content for millennials, a demographic coveted by advertisers. Benjamin Mogil, an analyst at Stifel, says Comcast is likely eyeing a few DreamWorks assets. “China operations, which Universal could likely expand, is likely one area of focus,” wrote Mogil in a report. “On the Awesomeness TV front, we see the ability to carve out a window outside of Verizon’s mobile window for such content on a cable video-on-demand service, which would be attractive for Comcast.” DreamWorks’ current films include “Kung Fu Panda 3,” while its earlier box office hits include “Shrek” and “How to Train Your Dragon.” DreamWorks has also been developing TV shows for video streaming services. Customers include Netflix and Amazon.com ( AMZN ). NBCU owns cable channels including USA Network, SyFy and Bravo. Amid falling audience ratings, the cable channels also need better original content to compete with Web streaming services, analysts say. Aside from Universal Films, Comcast owns Focus Features and Illumination Entertainment, the latter of which developed the “Minions” movies. NBCU’s filmed entertainment revenue jumped 46% to $7.3 billion in 2015, thanks to the box office success of “Minions,” “Jurassic World,” “Furious 7” and “Fifty Shades of Grey.” NBCU’s film and entertainment revenue, however, fell 4.3% in Q1, to $1.38 billion.

Google Transparency Project Sees Google-Government ‘Revolving Door’

Google, the search leader and main company of parent firm Alphabet ( GOOGL ), has outsized influence on government officials and public policies, says the nonprofit Google Transparency Project, which launched a searchable database on the issue on Tuesday. Google Transparency Project is a research initiative of Campaign for Accountability, which says that it “uses research, litigation and aggressive communications to expose how decisions made behind the doors of corporate boardrooms and government offices impact Americans’ lives.” The group said in a statement , “The project will compile and organize data from public sources and make it available for (public) review.” “Google knows more about us than we know about ourselves, but we know surprisingly little about Google and how it actually operates,” Anne Weismann, executive director of Campaign for Accountability, said in the statement. “Google has long been a strong advocate of transparency in government, business and even users’ private lives. It has not, however, been transparent about its own dealings with the government.” Weismann said that the new project “will shine a light on how Google influences our government officials, public policies and the way we live.” When contacted by IBD, an official with the nonprofit said that it does not reveal its funding sources. “We do not disclose our donors,” said Daniel Stevens, Campaign for Accountability deputy director. “I cannot comment on any aspect of it. For 501(c)(3) (nonprofits), we have to disclose it (funding sources) to the IRS, but it’s not something that has to be publicly available.” The group’s first data release says that 427 meetings involving Google’s employees or associated entities have occurred since President Barack Obama took office in January 2009 through October 2015 — more than one a week. The project also sees a “revolving door,” with some employees moving from Google to government jobs and vice versa. “The data set highlights the astonishing level of traffic between the two in both directions: 251 people either moved from Google into government or vice versa since Obama took office,” according to the group’s statement. Weismann served as chief counsel of Citizens for Responsibility and Ethics in Washington and as deputy chief of the Federal Communications Commission’s Enforcement Bureau, where she had responsibility for the bureau’s telecom matters. Alphabet stock was near 733, down more than 1% in afternoon trading on the stock market today .

Verizon Spills Beans On Go90 Video Service, Yahoo, To Analysts

Verizon Communications ( VZ ) aims to expand its ad-supported Go90 mobile video service to multiple video streaming platforms starting by mid-2016, say sell-side analysts briefed at a meeting on Monday. Verizon’s analyst meeting came after Verizon reported Q1 revenue on April 21 that missed estimates . On Monday, Verizon executives discussed a broad range of market opportunities, including offering 5G wireless broadband services by 2020. Verizon has not disclosed how many subscribers it has for Go90, which targets millennials (ages 18 to 34) and Gen Zers (teens). Verizon launched the Go90 service in September. Verizon plans to “extend Go90 from a mobile app to a multiscreen platform in an attempt to drive scale and distribution of advertising from Verizon’s owned content,” said Paul de Sa, an analyst at Bernstein Research, in a report. Go90 provides a mix of original Web TV series, live sports, concert streaming, prime-time TV and more. “By midyear, Go90 will leverage (Verizon-owned) AOL and be available on multiple platforms,” said Macquarie analyst Amy Yong in a research report. Verizon management told analysts that the company plans to expand its digital media strategy with or without Web portal Yahoo ( YHOO ). Verizon, which acquired AOL for $4.4 billion in 2015, has stated its interest in buying part or all of Yahoo. The Internet firm is reviewing offers from Verizon, private equity firms and other entities. By acquiring AOL, Verizon gained both online content and advertising technology . With AOL’s “programmatic” ad technology, Verizon aims to provide advertisers with tools to target users with the most relevant ads based on anonymous subscriber data. Verizon last year also snapped up online ad firm Millennial Media for a reported $250 million. Alphabet ’s ( GOOGL ) Google and Facebook ( FB ) now reap the lion’s share of mobile advertising revenue. Verizon says that the mobile ad market is growing fast, providing room for many companies to grow, and that it doesn’t need Google’s scale to succeed. Verizon told analysts that it does need to “out-google Google,” said Colby Synesael, a Cowen & Co. analyst, in a report. Verizon has around 100 million wireless phone subscribers to target, Synesael said.