WEBVTT - Comcast Deal; Iridium Acquired; SpaceX Moves

0:00:02.520 --> 0:00:07.360
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

0:00:08.520 --> 0:00:12.440
<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

0:00:12.440 --> 0:00:15.880
<v Speaker 2>in the stock market. Harnessing the power of Bloomberg Data.

0:00:16.520 --> 0:00:18.800
<v Speaker 2>Let's take a look at some stocks on the move today.

0:00:19.079 --> 0:00:23.200
<v Speaker 2>I'm Tom Keen with Paul Sweeney and Bloomberg's Alexis Christopher's

0:00:23.280 --> 0:00:23.720
<v Speaker 2>what do you have?

0:00:23.920 --> 0:00:26.440
<v Speaker 3>Well, we have to talk about Comcast. It's really the

0:00:26.480 --> 0:00:29.160
<v Speaker 3>stock story of the day. It is up twenty three

0:00:29.200 --> 0:00:32.239
<v Speaker 3>percent in the pre market and it's been having a

0:00:32.240 --> 0:00:34.919
<v Speaker 3>tough time, down seventeen percent year. Data took a look

0:00:34.960 --> 0:00:37.879
<v Speaker 3>at its one year return, down thirty four percent. So

0:00:37.960 --> 0:00:41.000
<v Speaker 3>today the company announced plans to separate its media business

0:00:41.000 --> 0:00:43.680
<v Speaker 3>from its cable TV and internet operations. It's going to

0:00:43.720 --> 0:00:46.840
<v Speaker 3>spin off NBC Universal and Sky, which is of course

0:00:46.840 --> 0:00:50.519
<v Speaker 3>based in England, into a new publicly traded company in

0:00:50.600 --> 0:00:54.480
<v Speaker 3>a bid to increase value. To unlock value, this pure

0:00:54.520 --> 0:00:57.000
<v Speaker 3>play media company is going to be led by Mike Cavanaugh,

0:00:57.040 --> 0:01:02.160
<v Speaker 3>who's currently Comcast's co CEO, and the former chief financial officer,

0:01:02.680 --> 0:01:06.399
<v Speaker 3>Michael Angelocis is going to return to run Comcast. So

0:01:06.440 --> 0:01:08.640
<v Speaker 3>here's how it's going to break down. NBC Universal going

0:01:08.680 --> 0:01:12.080
<v Speaker 3>to include universals, film and TV studios. It's growing Theme

0:01:12.160 --> 0:01:14.600
<v Speaker 3>parks division. I haven't been to that park in a

0:01:14.600 --> 0:01:16.600
<v Speaker 3>while over on the West coast, but that's a lot

0:01:16.600 --> 0:01:20.600
<v Speaker 3>of fun. I have to say, the NBC and Telemundow networks, Bravo,

0:01:20.880 --> 0:01:25.160
<v Speaker 3>Peacock streaming service, and like we said, the European business Sky.

0:01:25.640 --> 0:01:28.000
<v Speaker 3>The remaining Comcast business is going to consist of the

0:01:28.040 --> 0:01:33.520
<v Speaker 3>company's broadband, wireless, cable TV operations. Comcast also has been

0:01:33.560 --> 0:01:37.240
<v Speaker 3>working to you know, prevent people from cutting the cord,

0:01:37.240 --> 0:01:39.920
<v Speaker 3>which I think all of the cable companies are trying

0:01:39.959 --> 0:01:42.040
<v Speaker 3>to deal with. This is going to be a tax

0:01:42.080 --> 0:01:45.640
<v Speaker 3>free spin off expected to happen in about a year's time,

0:01:46.040 --> 0:01:49.000
<v Speaker 3>and Comcast shareholders will own shares in both Comcast and

0:01:49.160 --> 0:01:51.360
<v Speaker 3>NBC Universal when the deal is done.

0:01:51.480 --> 0:01:55.720
<v Speaker 1>Discuss yep, So there we go. It's you know, create values. KEITHA.

0:01:55.800 --> 0:01:59.520
<v Speaker 1>Rounganath and Bloomberg intelligence that NBC Universal today is greatly

0:01:59.600 --> 0:02:02.680
<v Speaker 1>under as part of Comcasts per her analysis. So you

0:02:02.680 --> 0:02:05.120
<v Speaker 1>split them apart, you highlight the value, and then number two,

0:02:05.400 --> 0:02:07.920
<v Speaker 1>maybe you set up an exit strategy for one of

0:02:07.960 --> 0:02:11.040
<v Speaker 1>these companies to consolidate. Maybe an exit strategy for some

0:02:11.080 --> 0:02:13.000
<v Speaker 1>of the Roberts founder. That's my thought.

0:02:13.200 --> 0:02:17.359
<v Speaker 2>Well, for example, off our radar, Telemundo mince money, right.

0:02:17.960 --> 0:02:21.040
<v Speaker 1>Yeah, I mean some of the networks are still driving cash,

0:02:21.120 --> 0:02:24.240
<v Speaker 1>but they're just their rate of growth is declining pretty

0:02:24.280 --> 0:02:27.040
<v Speaker 1>dramatically because of cord cutting. When you say consolidation, what

0:02:27.040 --> 0:02:29.600
<v Speaker 1>do you mean, Well, if you have a standalone cable company,

0:02:29.600 --> 0:02:32.120
<v Speaker 1>maybe that you can do something with that. With a

0:02:32.200 --> 0:02:34.720
<v Speaker 1>Charter for example, which is up twenty five percent per marketry,

0:02:34.760 --> 0:02:37.200
<v Speaker 1>that's another one of my stocks to watch, an NBC Universal.

0:02:37.639 --> 0:02:40.960
<v Speaker 1>Maybe they can be part of another media company. We

0:02:40.960 --> 0:02:43.320
<v Speaker 1>don't have time here, but buried this weekend was an

0:02:43.400 --> 0:02:47.480
<v Speaker 1>article on CNN and CBS are really in the same family? Now, yep?

0:02:47.680 --> 0:02:50.880
<v Speaker 3>Do we understand a paramount Sky downs? Yeah, that's in

0:02:50.919 --> 0:02:53.760
<v Speaker 3>the zeitgeist, but not really. It's all getting really messy,

0:02:53.840 --> 0:02:57.160
<v Speaker 3>really exactly Charter Community. Why don't we jump to Charter

0:02:57.200 --> 0:02:59.359
<v Speaker 3>Communications since you mentioned it, Paul, because the stock is

0:02:59.440 --> 0:03:01.440
<v Speaker 3>up twenty four four percent here It had been down

0:03:01.520 --> 0:03:04.480
<v Speaker 3>thirty six percent a year to date, so a few

0:03:04.480 --> 0:03:06.519
<v Speaker 3>things going on. I can't believe this is the only

0:03:06.560 --> 0:03:09.799
<v Speaker 3>reason why the stock is rallying, But it's discussed partnering

0:03:09.840 --> 0:03:13.200
<v Speaker 3>with SpaceX on a consumer mobile phone offering, where Charter

0:03:13.360 --> 0:03:16.919
<v Speaker 3>might run some of SpaceX's phone traffic through its ground

0:03:16.919 --> 0:03:20.480
<v Speaker 3>based internet infrastructure. This is according to sources being reported

0:03:20.520 --> 0:03:23.560
<v Speaker 3>by Bloomberg. Even so, we've got City lowering the firm's

0:03:23.560 --> 0:03:25.880
<v Speaker 3>price target on Charter to one ninety from two thirty,

0:03:26.080 --> 0:03:28.200
<v Speaker 3>keeping a buy rating there. And I just want to

0:03:28.240 --> 0:03:31.080
<v Speaker 3>also mention SpaceX up nearly two percent. It's going to

0:03:31.080 --> 0:03:33.880
<v Speaker 3>be added to the Nasdaq one hundred beginning July seventh.

0:03:33.880 --> 0:03:35.640
<v Speaker 3>And I know people are going, well, wait a minute, Alexis.

0:03:35.680 --> 0:03:37.040
<v Speaker 3>You told me it's not going to be added to

0:03:37.080 --> 0:03:40.320
<v Speaker 3>an index for twelve months and until it consistently turns

0:03:40.320 --> 0:03:43.080
<v Speaker 3>a profit. True only with regards to the s and

0:03:43.120 --> 0:03:45.840
<v Speaker 3>P five hundred still has to wait on that. Do

0:03:45.840 --> 0:03:46.920
<v Speaker 3>we have time for one more quick?

0:03:47.040 --> 0:03:47.360
<v Speaker 2>Sure?

0:03:47.480 --> 0:03:51.440
<v Speaker 3>Iridium up twenty one and a half percent. Rocket Lab

0:03:51.520 --> 0:03:54.160
<v Speaker 3>is going to buy the satellite communications company. It's a

0:03:54.200 --> 0:03:56.760
<v Speaker 3>cash and stock deal that values shares of Iridium at

0:03:56.760 --> 0:03:59.600
<v Speaker 3>fifty four dollars a share, giving it an enterprise value

0:03:59.640 --> 0:04:02.440
<v Speaker 3>of about eight billion dollars. What's it going to do

0:04:02.480 --> 0:04:05.120
<v Speaker 3>for rocket Lab? Give a control over a satellite fleet

0:04:05.360 --> 0:04:08.240
<v Speaker 3>and access to wireless resources that it can use to

0:04:08.280 --> 0:04:09.880
<v Speaker 3>compete with SpaceX.

0:04:11.280 --> 0:04:15.480
<v Speaker 2>The Stockmover's report from Bloomberg Radio. Check back with us

0:04:15.560 --> 0:04:18.360
<v Speaker 2>throughout the day for the latest roundup of companies making

0:04:18.400 --> 0:04:22.040
<v Speaker 2>news on Wall Street and for the latest market moving headlines.

0:04:22.240 --> 0:04:26.240
<v Speaker 2>Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg

0:04:26.320 --> 0:04:29.359
<v Speaker 2>dot com, and on Applecarplay and Android Auto with the

0:04:29.400 --> 0:04:30.760
<v Speaker 2>Bloomberg Business app.