High Finance
To be clear, Buffett is the largest economic shareholder in Paramount but Shari still controls nearly 80 percent of the voting stock
Are You There, Aryeh? It’s Me, Shari…
Shari only owns 10% of the company, and that 10% first-class stock has 80% of the voting shares, which is wild. Back in the L*s M**nves days, they tried a “nuclear option” with Marty Lipton to provide a dividend to the second-class shares that didn't give money but instead granted votes, which would have the Redstone shares powerless. It never went through.
It’s hard to exaggerate the importance of the Permian, which accounted for 74% of incremental oil production worldwide between 2015 and 2022. If that gusher is subsiding, the world will need to find new sources of oil, including offshore.
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i don't quite understand how this works yet but very interesting — and apparently the rules in an RMT are preventing Warner Bros Discovery and NBC Universal from merging right now
What is perhaps most debilitating for Iger, however, is the simple fact that the rules of the game have changed, and the ambitions have diminished. The glory days of growth and conquest that defined his first tenure have given way to a brutal battle for survival, one in which Iger may be forced to deconstruct the very empire he helped build, starti... See more
Dylan Byers • The Iger Bunker
[Tidewater] sold $250MM of senior unsecured bonds maturing in 2028 with a 10 3/8% coupon at a price of 99.
- they now trade at 102 to yield 9.8%, a spread of 522 basis points over Treasurys, or 124 basis points wider than the average single-B spread.
- implies they are “deep junk” bonds
Assume, again, a one percentage- point drop in the bonds’ respective yields. In that case, the U.S. Treasury 1.875s of 2051 would rally by 24%, to 74.30 from 60.15, and the on-the-run 30-year Treasury, the 4.125s of 2053, by 19%, to 116.69 from 97.91.
Let’s assume for a moment, though, that between the two sales, Paramount walks away with $4.5 billion in cash. Paramount has $13.5 billion of net debt, as of March 31. If Bakish decided to use the $4.5 billion in cash from the sales of S&S and BET to pay down that debt—always a good use of cash—Paramount would still have $9 billion in debt. On ... See more
Are You There, Aryeh? It’s Me, Shari…
it seems as though these are all brands that could be fucking incredible but are being manage-managed rather than brand-managed
In 2019, Ioannis Rallis, head of the group for European supranational, sovereign and agency debt-capital markets at J.P. Morgan, laid out the bullish case in these words: “With a high convexity bond, the price falls less if yields go up than it increases when yields go down. That asymmetry is very interesting for some investors, who can use it as a... See more
In a consumer survey last year, the Federal Reserve found that 37% of Americans lacked the savings to cover an unantici- pated $400 expense.