1 00:00:02,520 --> 00:00:08,800 Speaker 1: Bloomberg Audio, Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:17,799 Speaker 2: the stock market, harnessing the power of Bloomberg Data. Let's 4 00:00:17,840 --> 00:00:19,960 Speaker 2: get more here on some of the movers today. I'm 5 00:00:20,000 --> 00:00:23,040 Speaker 2: Alex Seelwick, Paul Sweeney. We're joined by Bloomberg's Christine Aquino. 6 00:00:23,360 --> 00:00:26,279 Speaker 2: Let's start with the Warner Brothers and this split off. 7 00:00:26,440 --> 00:00:28,440 Speaker 1: It's a bit of a breakup story, as Paul Sweeney 8 00:00:28,520 --> 00:00:32,680 Speaker 1: mentioned earlier, so Warner Brothers sticker WBD shares her up 9 00:00:33,040 --> 00:00:35,519 Speaker 1: just over nine percent, so peering some of those opening 10 00:00:35,560 --> 00:00:39,199 Speaker 1: games on the back of this split news. So basically 11 00:00:39,200 --> 00:00:42,360 Speaker 1: the plan is to split its streaming as studios businesses 12 00:00:42,560 --> 00:00:46,240 Speaker 1: and it's seving networks operations by the middle of next year. 13 00:00:46,320 --> 00:00:49,120 Speaker 1: So now the Streaming and students company will include Warner 14 00:00:49,159 --> 00:00:53,199 Speaker 1: Brothers Television, the Motion Picture Group, DC Studios, HBO and 15 00:00:53,320 --> 00:00:57,560 Speaker 1: HBO Max, and then the global networks company will include entertainment, sports, 16 00:00:57,560 --> 00:01:01,000 Speaker 1: and news television brands, including CNN. So this is meant 17 00:01:01,000 --> 00:01:04,440 Speaker 1: to capitalize on a consumer shifting away from traditional pay 18 00:01:04,480 --> 00:01:08,080 Speaker 1: TV to new online options, and hopefully the new structure 19 00:01:08,160 --> 00:01:08,840 Speaker 1: will cater to that. 20 00:01:08,920 --> 00:01:11,640 Speaker 3: So Paul, do we like this? Yeah, it's a Comcast 21 00:01:11,680 --> 00:01:14,440 Speaker 3: is announced something similar. So this is just the bankers 22 00:01:14,720 --> 00:01:17,360 Speaker 3: taking taking apart what they put together just a few 23 00:01:17,440 --> 00:01:20,640 Speaker 3: years ago and getting paid both times. Basically, it's it's 24 00:01:20,640 --> 00:01:24,240 Speaker 3: a situation where you take the good businesses, the studio, 25 00:01:24,319 --> 00:01:27,760 Speaker 3: the streamers, and you separate that from the less good businesses, 26 00:01:27,760 --> 00:01:30,080 Speaker 3: which are the cable networks which are flatly declining. 27 00:01:30,440 --> 00:01:32,440 Speaker 2: The good cash flows and okay, so. 28 00:01:32,520 --> 00:01:34,120 Speaker 3: And that's where a lot of the debt will reside. 29 00:01:34,600 --> 00:01:36,080 Speaker 2: So what do you do do You didn't just roll 30 00:01:36,080 --> 00:01:38,640 Speaker 2: off the quote unquote less good business. 31 00:01:38,360 --> 00:01:39,319 Speaker 3: Like you just split them up. 32 00:01:39,360 --> 00:01:42,040 Speaker 2: This is a cash cow hang off debt period. 33 00:01:41,880 --> 00:01:44,600 Speaker 3: Yep, exactly. And maybe that that business will merge with 34 00:01:44,680 --> 00:01:46,920 Speaker 3: the Comcast cable networks that are going to get spun 35 00:01:46,959 --> 00:01:50,840 Speaker 3: off and then maybe you know, so a bigger batter company, two. 36 00:01:50,880 --> 00:01:53,080 Speaker 2: Less bad combined make something different. 37 00:01:53,840 --> 00:01:54,720 Speaker 1: The bankers get paid. 38 00:01:55,520 --> 00:01:58,320 Speaker 2: Morgan Evercore, it's important, important for Paul. 39 00:01:58,360 --> 00:01:59,360 Speaker 3: All right, let's go to Qualcom. 40 00:02:00,240 --> 00:02:03,120 Speaker 1: That's another M and a ish type of story. So 41 00:02:03,200 --> 00:02:07,000 Speaker 1: ticker q COOM that's currently up more than three percent 42 00:02:07,160 --> 00:02:09,680 Speaker 1: at the moment. And so this is because Qualcom reached 43 00:02:09,720 --> 00:02:12,280 Speaker 1: an agreement to buy alpha Wave for more than two 44 00:02:12,280 --> 00:02:15,200 Speaker 1: billion dollars two point four billion to be exact, and 45 00:02:15,440 --> 00:02:17,799 Speaker 1: the offer equates to about one hundred and eighty three 46 00:02:17,880 --> 00:02:20,799 Speaker 1: pence per share for alpha Wave, So that's a ninety 47 00:02:20,840 --> 00:02:23,880 Speaker 1: six percent premium to the share price on the thirty 48 00:02:23,880 --> 00:02:26,359 Speaker 1: first of March, which was the last rating day before 49 00:02:26,600 --> 00:02:29,000 Speaker 1: they disclosed the talks. And so you know, the CEO 50 00:02:29,040 --> 00:02:31,720 Speaker 1: of Qualcomb, Christiana Amon, has been looking for ways to 51 00:02:31,840 --> 00:02:35,600 Speaker 1: lessen the company's reliance on the smartphone market, and supposedly 52 00:02:35,720 --> 00:02:38,600 Speaker 1: alpha Wave, given it's teching use for data centers and 53 00:02:38,680 --> 00:02:41,040 Speaker 1: AI applications, can be used for that. But then some 54 00:02:41,120 --> 00:02:43,760 Speaker 1: analysts from lup Capital call the move a bit of 55 00:02:43,800 --> 00:02:47,760 Speaker 1: a head scratcher quote unquote, although they did also say 56 00:02:47,760 --> 00:02:50,200 Speaker 1: that it's a low risk deal for Qualcum shareholders given 57 00:02:50,200 --> 00:02:51,240 Speaker 1: the relative sizes. 58 00:02:51,639 --> 00:02:53,280 Speaker 3: All right, little m and a trade not bad. 59 00:02:53,800 --> 00:02:58,399 Speaker 1: Starbucks Starbucks, yeah, ticker SBUX. So that was down pre 60 00:02:58,520 --> 00:03:01,280 Speaker 1: market actually, but ivering a little bit now, just up 61 00:03:01,440 --> 00:03:03,760 Speaker 1: four tens of one percent at the moment. And so 62 00:03:03,800 --> 00:03:07,800 Speaker 1: that comes after Starbucks announced price cuts for its tea 63 00:03:07,800 --> 00:03:10,799 Speaker 1: based beverages not here though, in China. In China, Paul, sorry, 64 00:03:12,000 --> 00:03:14,560 Speaker 1: but that's part of their latest campaign to appeal to 65 00:03:14,639 --> 00:03:18,640 Speaker 1: Chinese consumers the summer's coming up. They're also facing increasing 66 00:03:18,720 --> 00:03:23,040 Speaker 1: competition from local chains that are more tea based. So 67 00:03:23,080 --> 00:03:26,080 Speaker 1: Starbucks now trying to compete without market a bit of 68 00:03:26,120 --> 00:03:28,880 Speaker 1: a departure because before you know, they were arguing that 69 00:03:28,960 --> 00:03:31,400 Speaker 1: they have a premium position in China. But I guess 70 00:03:31,680 --> 00:03:32,720 Speaker 1: now they're wanting to compete. 71 00:03:34,280 --> 00:03:38,400 Speaker 2: The Stock Movers podcast from Bloomberg Radio. Check back with 72 00:03:38,480 --> 00:03:41,240 Speaker 2: us throughout the day for the latest roundup of companies 73 00:03:41,280 --> 00:03:44,320 Speaker 2: making news on Wall Street and for the latest market 74 00:03:44,360 --> 00:03:48,760 Speaker 2: moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, 75 00:03:48,760 --> 00:03:52,040 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 76 00:03:52,080 --> 00:03:53,560 Speaker 2: the Bloomberg Business app.