Pink's Bottom Line on Media, Money and Sports

Consolidation in traditional media, retailers reporting earnings and an NHL superstar

In today’s newsletter, I discuss a potentially huge deal in traditional media, retailers reporting earnings this week and an NHL superstar.

MEDIA: Consolidation in Traditional Media

Both Bloomberg and The Wall Street Journal are reporting that AT&T, parent company of Warner Media, might combine its media assets with those of Discovery to create a new media company.

(Click here to read the Bloomberg story on the possible combination.)

AT&T through Warner Media owns a host of well known media brands including CNN, HBO and TBS among many others.

Discovery for its part owns its namesake Discovery as well as HGTV, Food Network and OWN: Oprah Winfrey Network among others.

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Both Warner Media and Discovery have strong cable television networks, but the cable television business is losing subscribers every year as consumers switch to other options including video streaming.

Notably, both Warner Media and Discovery have streaming video businesses — Warner Media has HBO Max and Discovery has Discovery+ — in addition to their traditional linear media products.

If the deal does indeed happen, look for video streaming, which already is a brutally competitive business, to become a focal point for the new entity.

MONEY: Retailers and Earnings

Two large retailers report earnings this week, and those reports could give another indication about both the strength of the US consumer and the strength of the overall US economic recovery.

Walmart, the nation’s biggest retailer, is expected to report its earnings on Tuesday morning before the stock market opens, and Target is expected to report Wednesday morning before the opening bell.

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These reports from Walmart and Target are important to watch as retail sales account for roughly two-thirds of total economic activity in the United States.

Watch closely for forward looking statements from both companies — if those statements are positive, that could indicate that the consumer spending remains healthy and that the economic recovery is likely on track.

If, however, those forward looking statements are negative in any way, that could indicate that the economic recovery might be tepid.

SPORTS: NHL Scoring Champion

Connor McDavid of the NHL’s Edmonton Oilers led the league in scoring this year with 105 points.

In a typical 82-game season, if a player scores 100 points, it’s an impressive feat that would put him among the league leaders.

Since this year’s NHL season was truncated to 56 from 82 games, McDavid’s point total of 105 is even more impressive.

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In fact, McDavid’s scoring pace this season puts him in rarefied air — or on rarefied ice — that is typical of all-time great players.

As such, McDavid already has emerged as a superstar in the NHL, but his stardom could transcend hockey — he could soon be a household name.

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Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.

The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.

(Newsletter Editor: Karina Pink)