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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Handquarters.
Speaker 1: I'm Charlie Pellet. The Dow, the SMP, and NEZ stack
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Speaker 1: Charlie Pellet, and that's a Bloomberg Business flash. You're listening
Speaker 1: to Taking Dock with Kathleen Box on Bloomberg Radio. To
Speaker 1: the names Colin Chapman, Michael Schumacher or Jackie Stewart mean
Speaker 1: anything to you. Well, they do to our next guest,
Speaker 1: Paul Sweeney. He is US director of Research and senior
Speaker 1: media and Internet analysts for Bloomberg Intelligence. Of course, Bloomberg
Speaker 1: Intelligence providing unique in real time research and context for
Speaker 1: a variety of industries as well as markets and government
Speaker 1: factors that affect business. Our terminal customers can access this
Speaker 1: function just by typing b I go on the Bloomberg
Speaker 1: Paul Sweeney, go ahead. I didn't want to give it away.
Speaker 1: What do all those names have in common? Formula one
Speaker 1: race car drivers? Yes, and you're here to tell us
Speaker 1: about the new owner of Formula one, right, it's and
Speaker 1: I think a kind of surprising transaction. Yesterday, John Malone's
Speaker 1: Liberty Media Companies, one of his many UH liberty media
Speaker 1: companies tracking stocks UH announced that it's purchasing Formula one
Speaker 1: parent company UH for about four point four billion dollars
Speaker 1: um and really making a big, big play on a
Speaker 1: sport that is not well known here in the US,
Speaker 1: but it's got a major global footprint. Well, I'm so
Speaker 1: glad to say here you say it was a surprise,
Speaker 1: because I'm going really when I when I saw this, right,
Speaker 1: But of course, UM liberal Media CEO Greg Maffei calling
Speaker 1: it's a formula ones digital operations. That part of it underdeveloped.
Speaker 1: And you know, we have seen like the tennis channel
Speaker 1: is doing quite well. The Sinclair Broadcasting just got them there.
Speaker 1: They want to get to what sixties seventy million households
Speaker 1: from forty seven million. Not the tennis is a niche sport. However,
Speaker 1: it seems that a lot of people are betting on
Speaker 1: taking an audience that is is as my face has underdeveloped,
Speaker 1: and you know, not trying to be broad but really
Speaker 1: trying to make that niche be something strong and powerful
Speaker 1: and possible. Yes, it's it's interesting. It's a it's a
Speaker 1: really is a global uh sporting franchise, much like soccer
Speaker 1: is on on a global basis. It really is a
Speaker 1: global basis. And the issuing interesting thing there is they
Speaker 1: have a you know, they have a television audience of
Speaker 1: over four million. That's a big number globally, but it's
Speaker 1: down from six million about uh ten, ten years ago,
Speaker 1: so they have a big over there audience. They have
Speaker 1: a pay TV audience, but there's a lot of markets
Speaker 1: where they're really underpenetrated from a television perspective. The United
Speaker 1: States market in North America being the biggest, but there
Speaker 1: are also a lot of Asian markets where they feel
Speaker 1: like they're underpenetrated from a television audience perspective. So I know,
Speaker 1: listening to the Liberty folks yesterday, they think that's an
Speaker 1: area of growth. But as you mentioned that, they highlighted
Speaker 1: some of the digital opportunities UM, where really that they
Speaker 1: believe that the long term growth is for this business,
Speaker 1: i e. Let's create a digital distribution platforms, whether it's
Speaker 1: direct Internet access UH, to allow more fans to get
Speaker 1: access to this racing UH and to dry to monetize
Speaker 1: those digital rights in the future, which is something that
Speaker 1: really Formula One, by its own emission, really has not done.
Speaker 1: What happens to Bernie Ecclestone, Well, I think there's the
Speaker 1: current chief executive, Bernie, Yeah, Bert Bernie ecclestone really founded
Speaker 1: Formula one Racing UM as a global business, you know,
Speaker 1: twenty five, third third thirty years ago. But again I
Speaker 1: think UM, I think certainly in the near term he's
Speaker 1: gonna stay there. We'll have to see what happens of UH.
Speaker 1: Liberty Media did bring in Chase Carry. He used to
Speaker 1: be a senior executive at Rupert Murdoch and is an
Speaker 1: extremely um well thought of executive, certainly in the media
Speaker 1: and telecommunications space. So he's gonna be the chairman of
Speaker 1: of this new company, and Bernie's gonna stay as the CEO.
Speaker 1: But the long term, you know, there may be some
Speaker 1: changes there. But because but clearly, I think Liberty Media
Speaker 1: is making a big bet here. I think they really
Speaker 1: view this as a content play. I don't think they're
Speaker 1: necessarily big sports fans, but they necessarily I think they
Speaker 1: recognize it as an undervalued content asset um that they
Speaker 1: believe over the next five to ten years they can
Speaker 1: grow the audience and then they can grow the advertising
Speaker 1: and sponsorship revenue opportunities, because that's really what you're talking
Speaker 1: about when you think about the business of Formula One.
Speaker 1: It's it's global TV advertising and global sponsorship um support
Speaker 1: around the world, and they think they can develop that. So, Dan,
Speaker 1: are you do you think this is a sort of
Speaker 1: a one time sort of deal for them or do
Speaker 1: you think they could look at other franchises, other sports
Speaker 1: that have these parts of the world that just aren't
Speaker 1: watching that much and find a way to leverage that. Yeah,
Speaker 1: I think typically for a John Malone type of transaction.
Speaker 1: The first thing I saw I thought of when I
Speaker 1: saw this cross the tape is he is going to
Speaker 1: use this asset as a wedge to get into other
Speaker 1: global media companies. Um if somebody wants to do uh
Speaker 1: really partnered with Formula one, UM, I think John Malone
Speaker 1: will be willing to give up some equity and a
Speaker 1: Formula one business and exchange for equity in a larger
Speaker 1: global media company. That's kind of been his m O
Speaker 1: to use an asset as a wedge or a way
Speaker 1: to get into an equity ownership position in another company.
Speaker 1: So you know, whether that's a talent company like Media
Speaker 1: Set or you know, something along those lines, one of
Speaker 1: the sky companies potentially, UM, I could see this is
Speaker 1: as a way for him to kind of broaden his
Speaker 1: global distribution platform. Paul Sweeney, thanks so much for joining us.
Speaker 1: He's director of North American Research and Media Analysts for
Speaker 1: Bloomberg Intelligence. Well, going up from forlo and racing to
Speaker 1: a different kind of race now. Back to back appearances
Speaker 1: by Hillary Clinton and Donald Trump at a forum on
Speaker 1: the military Wednesday night, exposed and during weaknesses that both
Speaker 1: candidates had yet to overcome two months before the presidential election,
Speaker 1: joining US now Mark mcquette, government porter for Bloomberg News,
Speaker 1: joining us from Columbus, Ohio. So Mark, they didn't exactly
Speaker 1: face off. They weren't debating directly at each other, but
Speaker 1: they were debating each other from from Afar in a way, right, right,
Speaker 1: I mean they were in appearances, Um, they were the
Speaker 1: same venue, but didn't appear on the stage at the
Speaker 1: same time. One went first and the other followed, UM,
Speaker 1: and they were clearly talking about a lot of the
Speaker 1: same issues. Donald Trump was bringing up Um. Hillary Clinton's
Speaker 1: judgment UM she had to defend her use of a
Speaker 1: private email server when she was Secretary of State, and
Speaker 1: she was calling out his temperament for being commander in chief,
Speaker 1: which was the purpose of the forum by um pointing
Speaker 1: out that he has not had had um much to
Speaker 1: say about what he would do with the Islamic State
Speaker 1: or other specific plans, and that was sort of exposed
Speaker 1: in the questioning in this forum. Hey, Mark, I just
Speaker 1: wondered if he could speak a little bit about the
Speaker 1: actual forum that took place and the interviewer, Matt Lauer,
Speaker 1: because that drew a lot of criticism on the internet.
Speaker 1: It did. This was again it was they were not together.
Speaker 1: Was Matt Lower interviewing each candidate uh individually? And you
Speaker 1: had questions from veterans in the audience as well, UH
Speaker 1: and the Lauer, the host of the Today's Show and
Speaker 1: NBC got some criticism that he wasn't treating the candidates fairly,
Speaker 1: that he was a little more hard on Clinton with
Speaker 1: his questioning, particularly about the emails her email problem, UM,
Speaker 1: and also that he didn't challenge Donald Trump when he said, UH,
Speaker 1: he was opposed to the Iraq war all along, when
Speaker 1: in fact there's evidence that he said he was supportive
Speaker 1: of the war. So he wasn't sort of fact checking
Speaker 1: UH in challenging false statements when he was interviewing Ump. So,
Speaker 1: I mean, but it also sort of underscores the difficulty
Speaker 1: this kind of setting has, and as we look forward
Speaker 1: to the next debate coming out the first debate actually
Speaker 1: later this month, sort of underscores the problem of trying
Speaker 1: to deal in particular with Trump, who you know, makes
Speaker 1: a lot of broad statements. You know, it's sometimes hard
Speaker 1: to pin him down on specifics of what he means.
Speaker 1: And also, you know, this this question of being able
Speaker 1: to challenge something that he says that might not be
Speaker 1: accurate at the time, he says it of so much
Speaker 1: criticism of the media being too liberal, maybe that's what
Speaker 1: he was trying to overcompensate for. I guess we won't
Speaker 1: know unless we get hit him on the show. But
Speaker 1: mark the latest polls. Let's talk about those because they
Speaker 1: they seem to show some very stark differences between Clinton
Speaker 1: supporters and Donald Trump supporters that have been more and
Speaker 1: more persistent throughout these campaigns. Right, we have a poll
Speaker 1: up on our website now that it's called the Purple
Speaker 1: Slice Online poll that's done for Boomberg Politics, and we
Speaker 1: specifically looked at UM voters who do not have a
Speaker 1: high school more than a high school education. These will
Speaker 1: be sort of uneducated voters or at least voters who
Speaker 1: don't have a college degree UM. And we looked at
Speaker 1: that because you know, Donald Trump has made pretty strong
Speaker 1: outreach to sort of working class voters voters in this demographic,
Speaker 1: and the poll showed that he does have very strong
Speaker 1: appeal among whites who have no more than a high
Speaker 1: school degree. He's leading Clinton by like to tht in
Speaker 1: that group. But when you look at the total group
Speaker 1: of UH folks who just have a high school degree,
Speaker 1: Quintin is still ahead just because she has such an
Speaker 1: overwhelming lead among minority voters who don't have a high
Speaker 1: school degree. It's like to ten percent. So when you
Speaker 1: put all those groups together, Clinton still has a lead,
Speaker 1: but it shows sort of her weakness UH in that area,
Speaker 1: particularly white working class voters. And the poll suggests that
Speaker 1: a lot of this could come down to turn out.
Speaker 1: You know, whose voters get to the polls, particularly in
Speaker 1: these key swing states like a Ohio and Pennsylvania. Are
Speaker 1: they minority borders who are more likely support Hillary Clinton
Speaker 1: or sort of the white working class folks who might
Speaker 1: be more enamored of Donald Trump. What about other Republican
Speaker 1: candidates and Hillary Clinton's call for them to disassociate themselves
Speaker 1: from Donald Trump's comments regarding Russian President Vladimir Putin? Right,
Speaker 1: it's kind of follow up from the forum last night
Speaker 1: in New York. Hillary Clinton had sort of impromptu press
Speaker 1: conference on the tarmac before she flew out to a
Speaker 1: rally she was having in North Carolina today, where she
Speaker 1: linked specifically comments that Donald Trump had made about general's
Speaker 1: u S generals. He suggested they've been reduced to a
Speaker 1: pile of rubble, or weren't effective in the Obama administration.
Speaker 1: And praise he had for Vladimir Putin, the Russian uh
Speaker 1: UM leader. Essentially, you know, Putin has said favorable things
Speaker 1: about Trump, and Trump said he was glad, and Clinton
Speaker 1: was trying to suggest that this is somehow unpatriotic to
Speaker 1: both criticize U S generals and praise, in this case,
Speaker 1: an adversary in Russia. Thanks very much. Mark Niquette is
Speaker 1: a government reporter for Bloomberg News, joining us from the
Speaker 1: battleground state of Columbus, Ohio. Thank you very much. You're
Speaker 1: listening to taking Stock. I'm Pim Fox. This is Bloomberg