Back in 1983, approximately 50 corporations controlled the vast majority of all news media in the United States. Today, ownership of the news media has been concentrated in the hands of just six incredibly powerful media corporations. These corporate behemoths control most of what we watch, hear and read every single day. They own television networks, cable channels, movie studios, newspapers, magazines, publishing houses, music labels and even many of our favorite websites. Sadly, most Americans don’t even stop to think about who is feeding them the endless hours of news and entertainment that they constantly ingest.
Most Americans don’t really seem to care about who owns the media. But they should. The truth is that each of us is deeply influenced by the messages that are constantly being pounded into our heads by the mainstream media. The average American watches 153 hours of television a month. In fact, most Americans begin to feel physically uncomfortable if they go too long without watching or listening to something. Sadly, most Americans have become absolutely addicted to news and entertainment and the ownership of all that news and entertainment that we crave is being concentrated in fewer and fewer hands each year.
The six corporations that collectively control U.S. media today are Time Warner, Walt Disney, Viacom, Rupert Murdoch’s News Corp., CBS Corporation and NBC Universal. Together, the "big six" absolutely dominate news and entertainment in the United States. But even those areas of the media that the "big six" do not completely control are becoming increasingly concentrated. For example, Clear Channel now owns over 1000 radio stations across the United States. Companies like Google, Yahoo and Microsoft are increasingly dominating the Internet.
But it is the "big six" that are the biggest concerns. When you control what Americans watch, hear and read you gain a great deal of control over what they think. They don’t call it "programming" for nothing.
Back in 1983 it was bad enough that about 50 corporations dominated U.S. media. But since that time, power over the media has rapidly become concentrated in the hands of fewer and fewer people….
In 1983, fifty corporations dominated most of every mass medium and the biggest media merger in history was a $340 million deal. … [I]n…
Were Bonnie Jean Hoxie and her boyfriend stupid or just desperate?
Regardless of the motivation (we hear it’s shoes, no kidding), you have to hand it to the FBI for bidding them down before busting them. That’s got to hurt. And after all of this, the dynamic duo couldn’t even deliver Disney’s earnings, just some vague earnings per share crap. Now that’s just sad.
The SEC alleges that Bonnie Jean Hoxie and her paramour attempted to sell Disney’s second-quarter earnings ahead of their official release. The method: the two sent as many as 20 hedge funds a letter offering to provide the earnings release for a fee. The text of the letter, contained in the SEC complaint, begins:
“Hi, I have access to Disney (DIS) quarterly earnings report before its release on 5/03/10. I am willing to share this information for a fee that we can determine later….My email is XXX I count on your discretion as you can count on mine.”
One of the hedge funds notified authorities about the letter and a pair of FBI agents got in contact with Hoxie’s boyfriend, Yonni Sebbag.
At one point, Sebbag asked for a $20,000 fee. The FBI agents, who were posing as traders, bid him down.
“$15K sounds great. $30K even better as I hope you will make a killing form Q2 earnings,’’ Sebbag allegedly wrote in an email to the agents, according to the SEC complaint. They settled on $15,000.
So what about the other 19 hedge funds who failed to report this boneheaded move?
The House of Mouse has its swagger back, mostly thanks to its CEO Bob Iger.
What follows will not be a analysis of Disney ($DIS) the stock, rather a look at why Disney is once again the coolest company in the media game. Whether or not it’s worthy of investment is up to you.
Movies: If there is a parent in America who doesn’t take their child to Toy Story 3 this summer, email me that parent’s contact info so I can alert Child Services. The Pixar acquisition was the best thing Disney has done in 20 years. Oh wait, they also bought Marvel, setting themselves up to capitalize on franchises like Iron man, Spider-Man, The Avengers etc.
The studio also can mine their existing properties forever. There’s a Tron remake coming out shortly and one can only imagine how many …
In my larval, pre-blogging days, I always faced the back-to-school moment with abject dread. It meant returning to a program of the most severe, mind-numbing regimentation in the ghastly New York City public schools after a summer of idyllic unreality in the New Hampshire woods, where I went to a Lord of the Flies type of summer camp. And so here I am, many decades later, still uneasy as the final page of the August calendar flies away in a hot Santa Ana wind, and a great hellfire closes in on the far eastern reaches of Los Angeles, and the American money system falls into a peculiar limbo, and every fifth person is out of work, or going bankrupt, or glugging down the seawater of default, or being denied coverage by health insurance that he-or-she has already shelled out ten grand for this year, or getting shot in a trailer park.
I was in Los Angeles for a few days last week, as chance had it, marveling at the odd disposition of things there. I’ve been there many times over the years, but you forget how overwhelmingly weird it is. Altogether the LA metro area has the ambience of a garage the size of Rhode Island where someone happened to leave the engine running. To say that LA is all about cars is kind of like saying the Pacific Ocean is all about water. But one forgets the supernatural scale of the freeways, the tsunamis of vehicles, the cosmic despair of the traffic jams. The vistas of present-day LA make the Blade Runner vision of things look quaint in comparison.
You motor out of the LAX airport – personally, I love the name "LAX" because it so beautifully describes the collective ethos of the place – and you discover quickly that the taxi cab’s windows are not that dirty, it’s the air itself colored brown like miso soup. Going north on the 405 freeway, you see the looming Moloch of the downtown skyline through the brown miso soup. And you begin to understand why the products of the film industry are so fixated on the theme of machine apocalypse. Downtown LA looks like just such a gigantic machine as the FX crews would dream up, as if a day will come when those gleaming mirrored office towers will pull themselves
First we had the $5.5 billion dollar deal between Baker Hughes and BJ Services. Now Disney picks up Marvel. It’s suddenly feeling like the old days when Monday mornings meant merger announcements. That’s $9.5 billion in deal flow today.
No details yet on the banks working the deals or the financing involved.
From the Associated Press:
Walt Disney Co. says it is acquiring Marvel Entertainment Inc. for $4 billion in cash and stock, bringing characters like Iron Man and Spider-Man into the Disney family.
Under the deal, Disney will acquire ownership of 5,000 Marvel characters.
Disney said Monday that Marvel shareholders will receive $30 per share in cash plus 0.745 Disney shares for every Marvel share they own.
It said the boards of Disney and Marvel have both approved the transaction, but it requires an antitrust review and the approval of Marvel shareholders.
Disney (DIS) announced this morning it was acquiring Marvel Entertainment (MVL) for about $4 billion, or $50 per Marvel share. The acquisition price represents a 30% premium to Marvel’s current share price.
Operationally Marvel appears to be a good fit for Disney. Disney’s distribution could quickly exploit Marvel’s strong licensing business. In addition, Marvel has recently gotten into making its own productions (versus just licensing its characters for films), which has helped drive better-than-expected results the past few quarters.
Every election needs an organizing catchphrase and that goes doubly for the Republican presidential race, with 16 candidates having entered the fray and more on the way. I think I have the perfect one for the moment: “You’ve been Trumped!” After all, one striking thing about the Republicans, now that th...
In a rather stunning note, CyberBerkut, a Ukrainian group of hackers, claims to have hacked John McCain’s laptop while he was in the Ukraine, and as Techworm reports, what they have released from his June visit appears to be a fully staged production of an ISIS execution video...
By Clayton Browne. Originally published at ValueWalk.
Herbalife Ltd. (NYSE:HLF) notched another court victory on Tuesday as a federal judge in LA threw out an investor lawsuit against the much loved and reviled nutritional supplements maker. In the ruling announced today, the beleaguered firm won a second dismissal of an investor lawsuit claiming it was lying about the legitimacy of its business operations.
The lawsuit filed by the Oklahoma Firefighters Pension and Retirement System and others argued that Herbalife shareholders lost money after hedge fund activist ...
Another round of buying swept through Large Cap indices, but other indices didn't enjoy the same level of interest.
The S&P had the best of it. Since the middle of July it has enjoyed a strong advance relative to Small Caps and Technology indices, but it may be time for it to revert to mean. Technicals are a little scrappy, but are holding to the bearish side, but one more day of gains could swing it back in bulls favour.
The Nasdaq banked a small gain, but it's up against the big red candlestick from last week. The 'bull trap' is still in play. Technicals are mixed here too.
If the monthly rent check is already painful to write, brace yourself.
The Census Bureau's U.S. rental vacancy rate, which tracks the share of properties that are unoccupied, fell to 6.8 percent in the second quarter. That's the lowest level using comparable data since 1985.
In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.
Corporate earnings reports have been mixed at best, interspersed with the occasional spectacular report -- primarily from mega-caps like Google (GOOGL), Facebook (FB), or Amazon (AMZN). Some of the bul...
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Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).
Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself.
Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene
The replay is now available on BNN's website. For the three part series, click on the links below.
Part 1 is here (discussing the macro outlook for the markets)
Part 2 is here. (discussing our main trading strategies)
Part 3 is here. (reviewing our pick of th...
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at firstname.lastname@example.org with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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