In today’s newsletter, I discuss a possible deal between Amazon and MGM, home prices in the United States and US Open tennis.
MEDIA: Amazon and MGM
Amazon, the behemoth tech company, reportedly could soon purchase MGM Holdings, the venerable movie studio and television company. (Click here to read The Wall Street Journal story on the potential deal.)
If the deal were to happen, it would mark another major transaction involving a media company, following closely on the heels of the Discovery and AT&T combination announced last week.
Pink's Bottom LineAmazon’s purchase of MGM would deepen the tech giant’s move into media as it already has Amazon Prime, its video streaming service, and it also owns a handful of sports rights.
Notably, it also shows that big tech — and big media — now are becoming both competitors and bedfellows.
As such, look for more blurring of lines between tech and media companies and look for even more consolidation in the coming months.
MONEY: Home Prices
Home prices continued their inexorable climb upwards, according to the release today of the S&P CoreLogic Case-Shiller Index, a leading gauge of home prices in the United States.
According to that index, home prices jumped 13.2% in March compared to a year ago, following a 12% year-over-year increase in February. (Note: March data is the most current data for this index.)
Pink's Bottom LineOnce again, western cities — Phoenix, San Diego and Seattle — posted the biggest annual increases in prices. In Phoenix, prices rose 20% year-over-year. They rose 19.1% on an annual basis in San Diego, and 18.3% annually in Seattle.
During the pandemic, the housing market has been a pillar of strength of the US economy, and that shows no signs of changing as the country reopens.
However, if interest rates do begin to climb, which has become a real possibility due to inflationary pressures in the country, mortgage rates would also begin to increase, which could create some headwinds for the housing market.
SPORTS: US Open Tennis
The US Open tennis tournament won’t use line judges in this year’s tournament as the professional tennis tours announced Monday that the US Open — and seven other American tournaments — will use electronic line-calling for all matches.
Earlier this year, the Australian Open, the first grand slam event of the 2021 season, also used a fully electronic line-calling system for its matches.
Pink's Bottom LineDuring the pandemic, some tennis tournaments began opting for electronic line-calling in favor of line judges largely for safety reasons.
As such, it’s another sign that pandemic impacts just about everything, including the adoption of automated line-calling in professional tennis.
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)