WEBVTT - Bloomberg's Sweeney on Liberty Media, Niquette on Polls (Audio)

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<v Speaker 1>Global business news twenty four hours a day. If Bloomberg

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<v Speaker 1>I'm Charlie Pellet. The Dow, the SMP, and NEZ stack

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<v Speaker 1>Charlie Pellet, and that's a Bloomberg Business flash. You're listening

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<v Speaker 1>to Taking Dock with Kathleen Box on Bloomberg Radio. To

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<v Speaker 1>the names Colin Chapman, Michael Schumacher or Jackie Stewart mean

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<v Speaker 1>anything to you. Well, they do to our next guest,

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<v Speaker 1>Paul Sweeney. He is US director of Research and senior

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<v Speaker 1>media and Internet analysts for Bloomberg Intelligence. Of course, Bloomberg

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<v Speaker 1>function just by typing b I go on the Bloomberg

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<v Speaker 1>Paul Sweeney, go ahead. I didn't want to give it away.

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<v Speaker 1>What do all those names have in common? Formula one

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<v Speaker 1>race car drivers? Yes, and you're here to tell us

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<v Speaker 1>about the new owner of Formula one, right, it's and

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<v Speaker 1>I think a kind of surprising transaction. Yesterday, John Malone's

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<v Speaker 1>Liberty Media Companies, one of his many UH liberty media

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<v Speaker 1>companies tracking stocks UH announced that it's purchasing Formula one

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<v Speaker 1>parent company UH for about four point four billion dollars

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<v Speaker 1>um and really making a big, big play on a

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<v Speaker 1>sport that is not well known here in the US,

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<v Speaker 1>but it's got a major global footprint. Well, I'm so

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<v Speaker 1>glad to say here you say it was a surprise,

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<v Speaker 1>because I'm going really when I when I saw this, right,

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<v Speaker 1>But of course, UM liberal Media CEO Greg Maffei calling

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<v Speaker 1>it's a formula ones digital operations. That part of it underdeveloped.

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<v Speaker 1>And you know, we have seen like the tennis channel

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<v Speaker 1>is doing quite well. The Sinclair Broadcasting just got them there.

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<v Speaker 1>They want to get to what sixties seventy million households

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<v Speaker 1>from forty seven million. Not the tennis is a niche sport. However,

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<v Speaker 1>it seems that a lot of people are betting on

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<v Speaker 1>taking an audience that is is as my face has underdeveloped,

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<v Speaker 1>and you know, not trying to be broad but really

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<v Speaker 1>trying to make that niche be something strong and powerful

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<v Speaker 1>and possible. Yes, it's it's interesting. It's a it's a

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<v Speaker 1>really is a global uh sporting franchise, much like soccer

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<v Speaker 1>is on on a global basis. It really is a

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<v Speaker 1>global basis. And the issuing interesting thing there is they

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<v Speaker 1>have a you know, they have a television audience of

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<v Speaker 1>over four million. That's a big number globally, but it's

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<v Speaker 1>down from six million about uh ten, ten years ago,

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<v Speaker 1>so they have a big over there audience. They have

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<v Speaker 1>a pay TV audience, but there's a lot of markets

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<v Speaker 1>where they're really underpenetrated from a television perspective. The United

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<v Speaker 1>States market in North America being the biggest, but there

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<v Speaker 1>are also a lot of Asian markets where they feel

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<v Speaker 1>like they're underpenetrated from a television audience perspective. So I know,

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<v Speaker 1>listening to the Liberty folks yesterday, they think that's an

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<v Speaker 1>area of growth. But as you mentioned that, they highlighted

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<v Speaker 1>some of the digital opportunities UM, where really that they

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<v Speaker 1>believe that the long term growth is for this business,

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<v Speaker 1>i e. Let's create a digital distribution platforms, whether it's

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<v Speaker 1>direct Internet access UH, to allow more fans to get

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<v Speaker 1>access to this racing UH and to dry to monetize

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<v Speaker 1>those digital rights in the future, which is something that

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<v Speaker 1>really Formula One, by its own emission, really has not done.

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<v Speaker 1>What happens to Bernie Ecclestone, Well, I think there's the

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<v Speaker 1>current chief executive, Bernie, Yeah, Bert Bernie ecclestone really founded

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<v Speaker 1>Formula one Racing UM as a global business, you know,

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<v Speaker 1>twenty five, third third thirty years ago. But again I

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<v Speaker 1>think UM, I think certainly in the near term he's

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<v Speaker 1>gonna stay there. We'll have to see what happens of UH.

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<v Speaker 1>Liberty Media did bring in Chase Carry. He used to

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<v Speaker 1>be a senior executive at Rupert Murdoch and is an

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<v Speaker 1>extremely um well thought of executive, certainly in the media

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<v Speaker 1>and telecommunications space. So he's gonna be the chairman of

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<v Speaker 1>of this new company, and Bernie's gonna stay as the CEO.

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<v Speaker 1>But the long term, you know, there may be some

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<v Speaker 1>changes there. But because but clearly, I think Liberty Media

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<v Speaker 1>is making a big bet here. I think they really

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<v Speaker 1>view this as a content play. I don't think they're

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<v Speaker 1>necessarily big sports fans, but they necessarily I think they

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<v Speaker 1>recognize it as an undervalued content asset um that they

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<v Speaker 1>believe over the next five to ten years they can

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<v Speaker 1>grow the audience and then they can grow the advertising

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<v Speaker 1>and sponsorship revenue opportunities, because that's really what you're talking

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<v Speaker 1>about when you think about the business of Formula One.

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<v Speaker 1>It's it's global TV advertising and global sponsorship um support

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<v Speaker 1>around the world, and they think they can develop that. So, Dan,

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<v Speaker 1>are you do you think this is a sort of

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<v Speaker 1>a one time sort of deal for them or do

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<v Speaker 1>you think they could look at other franchises, other sports

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<v Speaker 1>that have these parts of the world that just aren't

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<v Speaker 1>watching that much and find a way to leverage that. Yeah,

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<v Speaker 1>I think typically for a John Malone type of transaction.

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<v Speaker 1>The first thing I saw I thought of when I

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<v Speaker 1>saw this cross the tape is he is going to

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<v Speaker 1>use this asset as a wedge to get into other

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<v Speaker 1>global media companies. Um if somebody wants to do uh

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<v Speaker 1>really partnered with Formula one, UM, I think John Malone

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<v Speaker 1>will be willing to give up some equity and a

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<v Speaker 1>Formula one business and exchange for equity in a larger

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<v Speaker 1>global media company. That's kind of been his m O

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<v Speaker 1>to use an asset as a wedge or a way

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<v Speaker 1>to get into an equity ownership position in another company.

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<v Speaker 1>So you know, whether that's a talent company like Media

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<v Speaker 1>Set or you know, something along those lines, one of

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<v Speaker 1>the sky companies potentially, UM, I could see this is

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<v Speaker 1>as a way for him to kind of broaden his

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<v Speaker 1>global distribution platform. Paul Sweeney, thanks so much for joining us.

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<v Speaker 1>He's director of North American Research and Media Analysts for

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<v Speaker 1>Bloomberg Intelligence. Well, going up from forlo and racing to

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<v Speaker 1>a different kind of race now. Back to back appearances

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<v Speaker 1>by Hillary Clinton and Donald Trump at a forum on

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<v Speaker 1>the military Wednesday night, exposed and during weaknesses that both

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<v Speaker 1>candidates had yet to overcome two months before the presidential election,

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<v Speaker 1>joining US now Mark mcquette, government porter for Bloomberg News,

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<v Speaker 1>joining us from Columbus, Ohio. So Mark, they didn't exactly

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<v Speaker 1>face off. They weren't debating directly at each other, but

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<v Speaker 1>they were debating each other from from Afar in a way, right, right,

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<v Speaker 1>I mean they were in appearances, Um, they were the

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<v Speaker 1>same venue, but didn't appear on the stage at the

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<v Speaker 1>same time. One went first and the other followed, UM,

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<v Speaker 1>and they were clearly talking about a lot of the

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<v Speaker 1>same issues. Donald Trump was bringing up Um. Hillary Clinton's

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<v Speaker 1>judgment UM she had to defend her use of a

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<v Speaker 1>private email server when she was Secretary of State, and

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<v Speaker 1>she was calling out his temperament for being commander in chief,

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<v Speaker 1>which was the purpose of the forum by um pointing

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<v Speaker 1>out that he has not had had um much to

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<v Speaker 1>say about what he would do with the Islamic State

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<v Speaker 1>or other specific plans, and that was sort of exposed

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<v Speaker 1>in the questioning in this forum. Hey, Mark, I just

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<v Speaker 1>wondered if he could speak a little bit about the

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<v Speaker 1>actual forum that took place and the interviewer, Matt Lauer,

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<v Speaker 1>because that drew a lot of criticism on the internet.

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<v Speaker 1>It did. This was again it was they were not together.

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<v Speaker 1>Was Matt Lower interviewing each candidate uh individually? And you

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<v Speaker 1>had questions from veterans in the audience as well, UH

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<v Speaker 1>and the Lauer, the host of the Today's Show and

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<v Speaker 1>NBC got some criticism that he wasn't treating the candidates fairly,

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<v Speaker 1>that he was a little more hard on Clinton with

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<v Speaker 1>his questioning, particularly about the emails her email problem, UM,

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<v Speaker 1>and also that he didn't challenge Donald Trump when he said, UH,

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<v Speaker 1>he was opposed to the Iraq war all along, when

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<v Speaker 1>in fact there's evidence that he said he was supportive

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<v Speaker 1>of the war. So he wasn't sort of fact checking

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<v Speaker 1>UH in challenging false statements when he was interviewing Ump. So,

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<v Speaker 1>I mean, but it also sort of underscores the difficulty

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<v Speaker 1>this kind of setting has, and as we look forward

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<v Speaker 1>to the next debate coming out the first debate actually

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<v Speaker 1>later this month, sort of underscores the problem of trying

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<v Speaker 1>to deal in particular with Trump, who you know, makes

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<v Speaker 1>a lot of broad statements. You know, it's sometimes hard

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<v Speaker 1>to pin him down on specifics of what he means.

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<v Speaker 1>And also, you know, this this question of being able

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<v Speaker 1>to challenge something that he says that might not be

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<v Speaker 1>accurate at the time, he says it of so much

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<v Speaker 1>criticism of the media being too liberal, maybe that's what

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<v Speaker 1>he was trying to overcompensate for. I guess we won't

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<v Speaker 1>know unless we get hit him on the show. But

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<v Speaker 1>mark the latest polls. Let's talk about those because they

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<v Speaker 1>they seem to show some very stark differences between Clinton

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<v Speaker 1>supporters and Donald Trump supporters that have been more and

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<v Speaker 1>more persistent throughout these campaigns. Right, we have a poll

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<v Speaker 1>up on our website now that it's called the Purple

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<v Speaker 1>Slice Online poll that's done for Boomberg Politics, and we

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<v Speaker 1>specifically looked at UM voters who do not have a

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<v Speaker 1>high school more than a high school education. These will

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<v Speaker 1>be sort of uneducated voters or at least voters who

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<v Speaker 1>don't have a college degree UM. And we looked at

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<v Speaker 1>that because you know, Donald Trump has made pretty strong

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<v Speaker 1>outreach to sort of working class voters voters in this demographic,

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<v Speaker 1>and the poll showed that he does have very strong

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<v Speaker 1>appeal among whites who have no more than a high

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<v Speaker 1>school degree. He's leading Clinton by like to tht in

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<v Speaker 1>that group. But when you look at the total group

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<v Speaker 1>of UH folks who just have a high school degree,

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<v Speaker 1>Quintin is still ahead just because she has such an

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<v Speaker 1>overwhelming lead among minority voters who don't have a high

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<v Speaker 1>school degree. It's like to ten percent. So when you

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<v Speaker 1>put all those groups together, Clinton still has a lead,

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<v Speaker 1>but it shows sort of her weakness UH in that area,

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<v Speaker 1>particularly white working class voters. And the poll suggests that

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<v Speaker 1>a lot of this could come down to turn out.

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<v Speaker 1>You know, whose voters get to the polls, particularly in

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<v Speaker 1>these key swing states like a Ohio and Pennsylvania. Are

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<v Speaker 1>they minority borders who are more likely support Hillary Clinton

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<v Speaker 1>or sort of the white working class folks who might

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<v Speaker 1>be more enamored of Donald Trump. What about other Republican

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<v Speaker 1>candidates and Hillary Clinton's call for them to disassociate themselves

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<v Speaker 1>from Donald Trump's comments regarding Russian President Vladimir Putin? Right,

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<v Speaker 1>it's kind of follow up from the forum last night

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<v Speaker 1>in New York. Hillary Clinton had sort of impromptu press

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<v Speaker 1>conference on the tarmac before she flew out to a

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<v Speaker 1>rally she was having in North Carolina today, where she

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<v Speaker 1>linked specifically comments that Donald Trump had made about general's

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<v Speaker 1>u S generals. He suggested they've been reduced to a

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<v Speaker 1>pile of rubble, or weren't effective in the Obama administration.

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<v Speaker 1>And praise he had for Vladimir Putin, the Russian uh

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<v Speaker 1>UM leader. Essentially, you know, Putin has said favorable things

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<v Speaker 1>about Trump, and Trump said he was glad, and Clinton

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<v Speaker 1>was trying to suggest that this is somehow unpatriotic to

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<v Speaker 1>both criticize U S generals and praise, in this case,

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<v Speaker 1>an adversary in Russia. Thanks very much. Mark Niquette is

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<v Speaker 1>a government reporter for Bloomberg News, joining us from the

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<v Speaker 1>battleground state of Columbus, Ohio. Thank you very much. You're

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<v Speaker 1>listening to taking Stock. I'm Pim Fox. This is Bloomberg