|By Shelly Palmer||
|August 10, 2014 03:01 AM EDT||
What a difference a week makes. At our Innovation Series breakfast this past week, I was planning to discuss my recent article, The “New” Media Landscape: CNBCUTWC, 21stCFTW, ATTDirecTV, T-Sprint. We sent out our pre-breakfast discussion guide just as the Twenty-First Century Fox/Time Warner and Sprint/T-Mobile deals blew up. This made for an awesome, lively discussion about what might have been, what was going to happen and most importantly… what’s going to happen now?
At this writing, the “new” media landscape is looking quite a bit like the “old” media landscape. But don’t be fooled by a few bumps in the road… the fun is really just about to start.
21st Century Fox/Time Warner (21CF/TW)
In our last episode, 21CF was in an epic battle to take over TW. Jeff rebuffed Rupert’s advances, and… to everyone’s amazement, Rupert withdrew. Negotiating tactic? Gamesmanship? Test?
Perhaps the market knows… 21CF’s stock (Nasdaq: FOXA) dipped a bit on the day the news broke, but it settled down around $34 at the end of the day. TW’s stock (NYSE: TWX) fell from $85.19 down to $74.90 after the news and now sits around $72 per share – more than a 15 percent drop. Obviously TW shareholders were surprised. They had pushed the stock to a 52-week high of $88.13 in anticipation of the deal.
Rupert said, “Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly. However, Time Warner management and its board refused to engage with us to explore an offer which was highly compelling…” Well-played, Rupert.
Does 21CF have the wherewithal to takeover TW? Do they still want to? Only Rupert knows. But this is an acquisition that make perfect business sense. Tune in next week for another exciting episode.
Don’t bother to stick a fork in it… it’s not done. After months of essentially acting like one company, Sprint called off talks to acquire T-Mobile. The move ended a nine-month bid to acquire T-Mobile. Sprint’s CEO Dan Hesse was shown the door, having been replaced by Marcelo Claure, the founder and CEO of Brightstar Corp (another SoftBank subsidiary).
What really happened? Almost everyone I’ve spoken to says that getting the deal through regulatory was going to be impossibly difficult. The market hammered both stocks — Sprint (NYSE: S) dropped about 19 percent, from $7.27 to $5.90 while T-Mobile (NYSE: TMUS) dropped about 9 percent, from $33.91 to $30.99 (its steepest decline since May 2013). It has since slipped to below $30.
Now that this has blown up, you can expect Iliad SA’s $15 billion bid for a 56.6% stake of T-Mobile US to be reconsidered. T-Mobile says we’re not going to see a T-Free, but Iliad (owners of France’s Free) is talking with various US-based cablers to up its offer. There’s also a chance that Charlie Ergen will resurface. DISH would have a much easier time getting FCC and DOJ approval. The plot thickens…
Guessing At The Future Again
Now that 21CF/TW is off, we can expect a few months of “old media executive self-hypnosis.” This is a technique that allows seasoned professionals to believe that this Internet thing is a fad, that a hit show will solve most problems and that three hit shows will solve every problem. (Substitute movie or album into the previous sentence as needed.)
What other businesses might be in play? If you write the names of all the Viacom and CBS assets on Lego blocks (throw in the Sony assets just for fun), you can build some awesome structures.
We certainly have not heard the last of 21CF and TW. Someone is buying TW at some point. At $105-$110 per share, the shareholders will insist. Who could pay that? Email me your picks. I’ll share a few with you.
Of course, if the stock starts going south, that original $85 offer is going to start to look good. Is that what Rupert is counting on? He hit TW hard by withdrawing his bid. But TW’s resolve is steely! And, in various statements, both companies assured shareholders that they were going to get back down to business. But what does that mean?
A force march to increase EPS will get the share prices up, but unless both companies make significant investments to adapt to changes in consumer behavior, neither will fare well. Investing in the platforms and toolsets required to get to the future first will negatively impact EPS in the short term. It’s either/or, not both. This strategic conundrum will play out over the next 18 months across the entire old media landscape as on-demand online and mobile media consumption starts to exceed scheduled one-to-many broadcast media consumption. Shareholder value vs. Enterprise value vs. Share Price. It’s game on!
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
Jan. 26, 2015 07:45 PM EST Reads: 2,482
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
Jan. 26, 2015 07:30 PM EST Reads: 1,515
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
Jan. 26, 2015 06:15 PM EST Reads: 3,852
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...
Jan. 26, 2015 06:00 PM EST Reads: 1,506
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science f...
Jan. 26, 2015 06:00 PM EST Reads: 3,069
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
Jan. 26, 2015 06:00 PM EST Reads: 1,670
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness,...
Jan. 26, 2015 06:00 PM EST Reads: 2,806
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
Jan. 26, 2015 05:45 PM EST Reads: 3,113
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
Jan. 26, 2015 05:00 PM EST Reads: 2,524
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Jan. 26, 2015 05:00 PM EST Reads: 7,609
Vormetric on Wednesday announced the results of its 2015 Insider Threat Report (ITR), conducted online on their behalf by Harris Poll and in conjunction with analyst firm Ovum in fall 2014 among 818 IT decision makers in various countries, including 408 in the United States. The report details striking findings around how U.S. and international enterprises perceive security threats, the types of employees considered most dangerous, environments at the greatest risk for data loss and the steps or...
Jan. 26, 2015 05:00 PM EST Reads: 1,532
Storage administrators find themselves walking a line between meeting employees’ demands to use public cloud storage services, and their organizations’ need to store information on-premises for security, performance, cost and compliance reasons. However, as file sharing protocols like CIFS and NFS continue to lose their relevance, simply relying only on a NAS-based environment creates inefficiencies that hurt productivity and the bottom line. IT wants to implement cloud storage it can purchase a...
Jan. 26, 2015 04:45 PM EST Reads: 683
Cloud Technology Partners on Wednesday announced it has been recognized by the Modern Infrastructure Impact Awards as one of the Best Amazon Web Services (AWS) Consulting Partners. Selected by the editors of TechTarget's SearchDataCenter.com, and by votes from customers and strategic channel partners, the companies acknowledged by the Modern Infrastructure Impact Awards represent the top providers of cloud consulting services for AWS including application migration, application development, inf...
Jan. 26, 2015 03:00 PM EST Reads: 1,316
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 26, 2015 02:45 PM EST Reads: 2,244
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 26, 2015 02:30 PM EST Reads: 2,465