Latest / Earn Your Leisure / Netflix, Warner Bros, and Monopolies: Caleb Silver Breaks Down the Power Moves

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Netflix, Warner Bros, and Monopolies: Caleb Silver Breaks Down the Power Moves · Earn Your Leisure

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  Speaker 1: This episode is brought to you by P and C Bank.
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  Speaker 2: All right, well, let's bring our guests on. You have
• 0:44
  Speaker 2: our guest, Caleb Silver.
• 0:47
  Speaker 1: Friend of the show, Calip, what's good?
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  Speaker 2: All right, So Caleb Silva, editor in cheap of Investopedia
• 1:56
  Speaker 2: and just all around very intelligent person when it comes
• 1:59
  Speaker 2: to stocks, and it has been a great resource and
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  Speaker 2: bring into the program and everything that we've done from
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  Speaker 2: investmest to market Mondays to earn your leisure. So always
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  Speaker 2: appreciate when you come on and share share your wisdom.
• 2:12
  Speaker 2: You've done, uh, technically, you've done technical analysis when it
• 2:15
  Speaker 2: comes to cryptocurrency, you done all types of different stuff.
• 2:19
  Speaker 2: So I want to start the conversation with Netflix. So
• 2:24
  Speaker 2: you know, we talked about this on Instagram a few
• 2:27
  Speaker 2: days ago, where at the time it appeared that they
• 2:31
  Speaker 2: acquired Warner Brothers and all streaming assets well in a
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  Speaker 2: seventy two billion dollar deal and that was something that
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  Speaker 2: really just broke the internet. But then a few days
• 2:40
  Speaker 2: later the Trump administration raised concerned about Netflix purchase of
• 2:43
  Speaker 2: Warner Brothers and said that not so fast as far
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  Speaker 2: as raised the concerns about it being a monopoly. So okay,
• 2:52
  Speaker 2: let's let's talk about let's have a whole conversation about this.
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  Speaker 2: But first let's let's talk about from educational standpoint, and
• 3:01
  Speaker 2: it goes to the website. But people that may not
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  Speaker 2: know what is a monopoly? Right? Where is that the
• 3:07
  Speaker 2: antid trust in the government come into play at some
• 3:12
  Speaker 2: point in tom I believe you know, we had this
• 3:14
  Speaker 2: is like the stop all of the Carnegie Rockefellers things
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  Speaker 2: that happened in the early turn of the century. So
• 3:19
  Speaker 2: talk about monopolies and how this all comes into where
• 3:24
  Speaker 2: where we get hit. Now, Yeah, this.
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  Speaker 3: Is beautiful, this is this is the entire sort of
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  Speaker 3: history of American capitalism, all coming to in head over
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  Speaker 3: entertainment assets, the biggest ones being obviously the Warner Brothers
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  Speaker 3: Library and Netflix, which would have become the biggest content
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  Speaker 3: company in the world. Basically, so monopoly goes all the
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  Speaker 3: way back to the anti Trust Acts of the Railroad Acts,
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  Speaker 3: the Sherman Act of the Railroad Acts in the nineteenth
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  Speaker 3: century late nineteenth century, when the railroads were developing in
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  Speaker 3: this country, they were building out, trying to get cross country,
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  Speaker 3: and there were several big ones that were colluding together.
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  Speaker 3: And that defines monopoly. When you have one, two or
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  Speaker 3: more parties collude together to try to corner our market
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  Speaker 3: and control market share, that is deemed monopolistic. When they
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  Speaker 3: make it anti competitive for competitors to enter the market
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  Speaker 3: and anti competitive for suppliers potentially to supply to those competitors,
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  Speaker 3: that's monopoly. And usually the Federal Trade Commission rules against
• 4:20
  Speaker 3: monopolies and have tried to strike them down. And except
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  Speaker 3: when the price is right, and we saw today, or
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  Speaker 3: it was today yesterday, beautiful hostile takeover bid from a
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  Speaker 3: competitor now entering the market, So you have a monopoly
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  Speaker 3: potentially you have an anti trust ruling and now you
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  Speaker 3: have a hostile takeover bid, all wrapped into one story.
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  Speaker 3: This is Investipedia wrapped up in a beautiful box with
• 4:40
  Speaker 3: a bow. I love it.
• 4:42
  Speaker 1: Doesn't this make it a little bit more interesting that
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  Speaker 1: the administration is involved in this? Obviously they said that,
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  Speaker 1: you know, they don't want it to be a monopoly.
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  Speaker 1: And then today the President said that he doesn't have
• 4:53
  Speaker 1: friends on either side, but a little dig into the research,
• 4:57
  Speaker 1: he doesn't have friends, but he definitely has family on ons.
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  Speaker 1: That's interest, yeah, and invested interest. I mean this is
• 5:03
  Speaker 1: pretty unique.
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  Speaker 3: Yeah, it's pretty unique, but it's not unusual to this administration.
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  Speaker 3: The last time I was on here with you guys
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  Speaker 3: a few months back after this administration took off, As
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  Speaker 3: I said, the most important metric right now for companies
• 5:14
  Speaker 3: is proximity to power. Who is sitting at the White House,
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  Speaker 3: who's having dinner, who's being invited to the CEO private
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  Speaker 3: dinners and mar A Lago for golf and drinks by
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  Speaker 3: the pool. And if you're in that camp, you've done
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  Speaker 3: very well as a stock. And this administration has proved
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  Speaker 3: that it is going to do what's in its best interest,
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  Speaker 3: in the best interest the people that are close to it,
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  Speaker 3: and also put their hand into private businesses, whether that's
• 5:39
  Speaker 3: investments in companies like Intel, or whether that's trying to
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  Speaker 3: strong arm deals between Nvidia and its suppliers or MD
• 5:46
  Speaker 3: and its suppliers, or guaranteed that companies build factories and
• 5:49
  Speaker 3: infrastructure here in the United States, they're going to do it,
• 5:52
  Speaker 3: So assume that they will have their hands in this
• 5:54
  Speaker 3: as well.
• 5:54
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