verizon cbs viacom prediction 2018

Verizon Buys CBS and Viacom In 2018- Prediction #3

Verizon Buys CBS and Viacom In 2018- Prediction #3

There is no doubt that Netflix ($NFLX) is reshaping the media landscape in a way that is far more severe than many may have ever thought.  As the company continues to drive subscriber growth, that has now eclipsed 100 million global users and spending $8 billion in original content creation, it is forcing the media giants to rethink the way they do business. It takes us to our third predictions for 2018: Verizon Takes The Plunge Into Content, Buying CBS and Viacom

Shifting Media Landscape

Netflix’s massive spend on content in 2017, has caused companies such as Disney ($DIS) to finally severe ties with the streaming media giant, forcing Disney to create its own direct to the consumer product. Also in an attempt to strengthen it’s content library, acquire assets from Fox for over $50 billion. This is likely just the start of a wave of consolidation in the media space.

Prediction #3 – Verizon Plunges Into Content Buying CBS and Viacom

Prediction 3- Could 2018 be the year Verizon ($VZ) follows AT&T ($T) lead? Perhaps.  In an attempt to catch up to AT&T’s and its bid to buy Time Warner ($TWX). Verizon could throw its hat into the ring and go after CBS ($CBS) and Viacom ($VIA) in 2018. A move like this could bring CBS and Viacom back together, and put Verizon squarely in the middle of the direct to the consumer experience, riding on the backbone of its FiOS product and the rollout of its 5G wireless network. It seems crazy,  for sure, and a wild prediction. It could come at a valuation equal to that of what Disney paid for Fox assets, at roughly $50 billion for both CBS and Viacom, giving a 40 percent premium to the two companies combined market caps of about $36 billion.

verizon cbs viacom prediction 2018

FOXA Market Cap data by YCharts

Anything Could Happen

There is no doubt that that media landscape is shifting very quickly, and when things move fast, anything could happen.

10 Predictions For 2018:

10. Tesla’s Stock Price Could Nearly Double In 2018

9. US Real GDP Will Grow at 4% or More In 2018 – 10 Predictions

8. Why The FANG’s Will Lead Stocks Higher In 2018

7. Oil will rise to roughly $75 per barrel in 2018, a rise of just over 30 percent.

6. Inflation will increase to 3 percent in 2018 on a year-over-year basis on the Consumer Price Index.

5. 10-Year Yields rise to 3 percent.

4. Biotech Stocks Will Be Best Performing Sector In 2018

The purpose of the 10 predictions is for fun and to think about the year to come. It helps to organize thoughts and think about potential themes and trends that could develop. See our 10 predictions for 2017 and judge for yourself how we did. 

We offer a lot of great commentaries all week talking about the major and relevant market events. Be sure to subscribe to get all our free commentaries sent directly to your inbox or follow us on Twitter.


Photo Credit Via Flickr

Michael Kramer and the clients of Mott Capital own shares of $VZ $NFLX $DIS

Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.

© 2017 Mott Capital Management, LLC.  Use, publication or reproduction in any media prohibited without the permission of the copyright holder.

Tags: #verizon #netflix #predictions #2018 #cbs #viacom #streaming #media