True Value

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AT&T communications CEO John Donovan. Photo by Bloomberg
True Value

AT&T Gears Up for Battle as Program Deals Come Up

By Jessica Toonkel · Nov 16, 2018 7:00am PST
AT&T, fresh off its acquisition of Time Warner, is gearing up for what could be a series of bloody battles with rival media giants, as it seeks to cut programming costs at its DirecTV satellite and streaming video division. The outcome could affect the shape of the TV industry for years to come.Several major media companies, including Fox,... AT&T, fresh off its acquisition of Time Warner, is gearing up for what could be a series of...
Elastic executives celebrate the company's initial public offering earlier this month. Photo by Bloomberg
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After IBM-Red Hat, Which Open-Source Companies Are Next?

By Kevin McLaughlin · Oct 30, 2018 7:01am PDT · 2 comments
With IBM’s $34 billion acquisition of Red Hat, open-source software—once one of the biggest threats facing traditional enterprise technology companies—has become a hot commodity. It is just a matter of time before more open-source companies are gobbled up. This year has already seen three other major open-source deals:... With IBM’s $34 billion acquisition of Red Hat, open-source software—once one of the...
Disney CEO Bob Iger. Photo by Bloomberg
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Disney’s Next Challenge: Managing Internal Conflicts Over Streaming

By Tom Dotan and Jessica Toonkel · Oct 25, 2018 7:00am PDT
As Walt Disney Company speeds along with its plans to launch new streaming services, it faces a fundamental challenge: how to more directly compete with Netflix without undermining its traditional TV networks.One area where the potential for internal conflict could become clear is in executive compensation. Disney is discussing using streaming... As Walt Disney Company speeds along with its plans to launch new streaming services, it faces a...
Tencent Music's QQ music streaming app on a phone in China last March. Photo by AP
Does Tencent Music Deserve a Spotify-Like Valuation?
By Alfred Lee and Wayne Ma · Aug 17, 2018 7:01am PDT · 3 comments
Tencent Music's QQ music streaming app on a phone in China last March. Photo by AP
True Value

Does Tencent Music Deserve a Spotify-Like Valuation?

By Alfred Lee and Wayne Ma · Aug 17, 2018 7:01am PDT · 3 comments
China tech IPOs, of companies such as Xiaomi and Pinduoduo, have struggled this year. That puts the spotlight on the next big U.S. public offering from China, which is likely to be Tencent Music Entertainment Group, China’s answer to Spotify. Its valuation has soared on private tech markets lately, suggesting that investors anticipate its... China tech IPOs, of companies such as Xiaomi and Pinduoduo, have struggled this year. That puts...
An AMC theater in Santa Monica, California. Photo by Bloomberg
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Why Movie Theaters Should Applaud MoviePass

By Matt Pressberg · Aug 10, 2018 3:29pm PDT · 1 comment
MoviePass’ effort to make a Netflix-like subscription service out of movie theater tickets has bled the company of cash in recent months. But while its future may be in doubt, the movie-ticket subscription concept it pioneered looks like it is here to stay.Several theater chains, including AMC and Cinemark, in recent months have introduced... MoviePass’ effort to make a Netflix-like subscription service out of movie theater tickets...
An Imax theater in Bengaluru, India. Photo: VR Bengaluru
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Imax’s Best Feature: Global Expansion

By Matt Pressberg · Jul 11, 2018 10:01am PDT
Movie theater stocks like AMC and Cinemark slumped last spring and haven’t recovered, thanks to a historically bad summer movie season, the rise of streaming services and even dying shopping malls, which have reduced foot traffic. Among those hit by the sell-off was Imax, the company responsible for giant screen movies.But Imax isn’t... Movie theater stocks like AMC and Cinemark slumped last spring and haven’t recovered,...
Snap stock details on display at the New York Stock Exchange last year. Photo by Bloomberg
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Why Snap Should Tap Apple or Tencent for Cash

By Tom Dotan · Jun 4, 2018 7:01am PDT · 1 comment
Snap built a business on messages that disappear. But to keep the business going it needs to make sure its cash doesn’t. The company burned through $1.1 billion in the last five quarters, just on running its business (it spent more cash on acquisitions). At that rate, and with just $1.8 billion left, Snap will likely need to raise more... Snap built a business on messages that disappear. But to keep the business going it needs to make...
The New York Stock Exchange on the day that Spotify went public. Photo by Bloomberg.
Why Uber and Airbnb Should Copy Spotify with a Direct Listing
By Serena Saitto · May 4, 2018 7:01am PDT · 1 comment
The New York Stock Exchange on the day that Spotify went public. Photo by Bloomberg.
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Why Uber and Airbnb Should Copy Spotify with a Direct Listing

By Serena Saitto · May 4, 2018 7:01am PDT · 1 comment
A month after debuting on the New York Stock Exchange by going public without selling new shares—an unprecedented direct listing—it is clear that Spotify’s experiment was a success. The Swedish music streaming company is trading 21% higher than where its stock traded in the private market immediately before its public listing.... A month after debuting on the New York Stock Exchange by going public without selling new...
GoPro CEO Nick Woodman at an event last September, unveiling a new version of its Hero wearable action camera. Photo by Bloomberg.
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GoPro’s Stock Rests on Potential Sale

By Alfred Lee · Apr 12, 2018 9:48am PDT
GoPro’s stock has hurtled downhill this year, not unlike one of the thrill-seeking mountain bikers who put on its wearable cameras before taking the plunge. Shares are down 36% in 2018, cutting its market capitalization to roughly $700 million. GoPro investors now have to hope the company will get acquired to see any lift in the price.In a... GoPro’s stock has hurtled downhill this year, not unlike one of the thrill-seeking mountain...
Photo: AP
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Uber, Lyft Face Growth Ceiling

By Amir Efrati · Apr 4, 2018 7:02am PDT · 4 comments
Several executives and key investors of Uber and Lyft estimate that annual revenue the companies generate in the U.S. from their core ride-hailing business will at most grow sixfold in the coming years before leveling off. That’s a much slower growth trajectory than what they were predicting a year or two ago, and it could translate into... Several executives and key investors of Uber and Lyft estimate that annual revenue the companies...
A Roku streaming device and remote control. Photo by AP
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Despite High Stock Price, Roku Is No Netflix

By Tom Dotan · Mar 13, 2018 10:52am PDT · 4 comments
Of all the tech companies that went public last year, Roku may have been the biggest surprise hit. Having made itself almost as synonymous with fast-growing streaming video as Netflix, Roku’s stock soared as high as $50 from an IPO price of $14. Even after a recent sell-off, sparked by slowing sales in the fourth quarter, Roku’s... Of all the tech companies that went public last year, Roku may have been the biggest surprise...
Paramount Pictures' studio lot in Hollywood. Photo by AP.
Why Studios Should Leave Hollywood
By Matt Pressberg · Mar 9, 2018 9:40am PST · 1 comment
Paramount Pictures' studio lot in Hollywood. Photo by AP.
True Value

Why Studios Should Leave Hollywood

By Matt Pressberg · Mar 9, 2018 9:40am PST · 1 comment
Last fall, CBS put its Television City compound in West Los Angeles on the market, saying that it was worth a lot of money that could be “used better elsewhere.” Other film and TV companies that own vast studio lots in the same area, such as 21st Century Fox, Viacom and Sony, should follow suit. These properties, which date to... Last fall, CBS put its Television City compound in West Los Angeles on the market, saying that it...
Stitch Fix CEO Katrina Lake. Photo by Bloomberg.
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What Could Hamper Stitch Fix’s Growth

By Priya Anand · Feb 27, 2018 7:01am PST
For clothing shoppers looking for some fresh ideas, Stitch Fix’s personalized e-commerce service is a great option. But for investors looking for fresh ideas in e-commerce, Stitch Fix may be one to avoid. New data on credit card transactions suggest the novelty of its service wears off quickly. Customers who stay for two years spend half... For clothing shoppers looking for some fresh ideas, Stitch Fix’s personalized e-commerce...
Photo by Bloomberg
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The Four Companies That Should Be on Cisco’s Shopping List

By Kevin McLaughlin and Sarah Kuranda · Feb 5, 2018 7:00am PST · 2 comments
Now that the new tax law is freeing up big tech firms to bring back tens of billions of dollars stored overseas, a spate of new tech acquisitions may be on the horizon. And one of the most aggressive buyers is likely to be Cisco Systems.At a recent meeting with reseller partners, CEO Chuck Robbins hinted that Cisco would use some of the $68... Now that the new tax law is freeing up big tech firms to bring back tens of billions of dollars...
A Snapchat user putting a filter on Edmonton Oilers left wing Jujhar Khaira during a game earlier this month. Photo by AP.
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Snap’s Focus on Stories Should Disappear

By Tom Dotan · Jan 30, 2018 1:02pm PST
For all of Snap’s focus on being a broadcasting service for millennials who share content with larger groups, what’s become clear is the app’s main usage remains where it started: messaging. But that’s not where it is making money. Instead it makes much of its ad revenue from users’ Stories, where people post... For all of Snap’s focus on being a broadcasting service for millennials who share content...
Dropbox CEO Drew Houston during an event in San Francisco. Photo by Bloomberg
Why Dropbox IPO Could Fall Short of Private Pricing
By Alfred Lee · Jan 22, 2018 7:00am PST
Dropbox CEO Drew Houston during an event in San Francisco. Photo by Bloomberg
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Why Dropbox IPO Could Fall Short of Private Pricing

By Alfred Lee · Jan 22, 2018 7:00am PST
As Dropbox readies for one of the year’s biggest IPOs, it hopes to avoid joining the growing list of Silicon Valley darlings that can’t match their private valuations when they meet public market scrutiny. To buck the trend, it needs to either be growing faster or show it is more profitable than other software firms.Right now, a... As Dropbox readies for one of the year’s biggest IPOs, it hopes to avoid joining the...
Photo by Bloomberg
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Amazon, Netflix Should Consider Buying Movie Theaters

By Matt Pressberg · Jan 16, 2018 10:40am PST · 4 comments
The new action movie starring Will Smith, “Bright,” was watched by an estimated 11 million people in the three days after it premiered on Dec. 22 on Netflix. In theaters, that audience would translate to a nearly $100 million box office opening weekend. That’s better than all but six movie openings in the U.S. last year. But... The new action movie starring Will Smith, “Bright,” was watched by an estimated 11...
Uber CEO Dara Khosrowshahi. Photo by Bloomberg. Charts by Mike Sullivan.
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How Uber Can Get to Break Even

By Amir Efrati · Jan 11, 2018 7:00am PST · 5 comments
Uber CEO Dara Khosrowshahi has told Uber executives he would like the company to nearly break even by the end of this year. By next year, when he has said Uber may go public, he wants the company to be profitable. Those aspirations will be difficult to achieve. Uber likely lost at least $3 billion in 2017, based on its results for the first... Uber CEO Dara Khosrowshahi has told Uber executives he would like the company to nearly break...
An Uber driver in Washington D.C. Photo by Bloomberg.
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Investors Rethink Uber’s Long-Term Value

By Amir Efrati · Dec 7, 2017 7:01am PST · 9 comments
SoftBank’s tender offer for Uber has divided shareholders in the ride-hailing firm. Some say the offer of $33 a share, 30% below what investors paid in Uber’s last financing round in 2015, is way too low. They’ll wait to sell until the IPO expected in a couple of years, unless SoftBank raises the price.More surprising, though,... SoftBank’s tender offer for Uber has divided shareholders in the ride-hailing firm. Some...
A Comcast cable truck. Photo by AP.
Forget Cord-Cutting. Big Threat to Cable Is Disappearing TV Profits
By Martin Peers · Nov 16, 2017 7:02am PST · 3 comments
A Comcast cable truck. Photo by AP.
True Value

Forget Cord-Cutting. Big Threat to Cable Is Disappearing TV Profits

By Martin Peers · Nov 16, 2017 7:02am PST · 3 comments
The threat that TV subscribers will cut the cord on their cable service has dominated discussion about TV’s future in recent years. But what isn’t widely appreciated is that rising programming costs could force cable operators out of the TV business within the next decade, well before cord-cutting does.Cable firms would be fine, as... The threat that TV subscribers will cut the cord on their cable service has dominated discussion...