After a brief research on each GICS classification, the aim is to read all the Yahoo Finance overviews for the S&P 500 companies that belong to the class. Furthermore, I will read the overview and MD&A of 10-K and the latest earnings call transcript for some select companies. Goal 1) See which companies fall under each sector. Goal 2) Be able to understand the overview of each business. Goal 3) Come up with my understanding to a reasonable depth, in an efficient way. Goal 4) Find out key metrics for each industry.
Communication Services
Source: MSCI
GICS Communication Services sector accounts for 9% of S&P 500 index with 22 companies as of Oct 2024. Sector forward p/e ratio is 18x. The disproportionately large Google and Meta occupy a big presence with a combined market cap of $3.5t. Netflix comes next with $320b. More traditional production or telecommunications companies like Walt Disney, Verizon, AT&T, T-Mobile, Comcast are in the $100b to $300b range.
Communication Services extends beyond companies that own the infrastructure that enables telecommunication. It encompasses companies that thrive on the back of these infrastructure. Media companies had their good days piggybacking from broadcast, cable, satellite technology. Now high-speed internet infrastructure is heavily leveraged by internet giants like Google, Meta, Netflix, driving so much traffic that some invest in subsea cables. The sector also includes advertising companies. The Media industry group classification used to belong under Consumer Discretionary sector before 2016.
Communication Services sector has 5 industries – Diversified Telecommunication Services, Wireless Telecommunication Services, Media, Entertainment, and Interactive Media & Services, which Google and Meta fall under.
Source: Finviz
Source: S&P Global
All company overview below are imported from Yahoo Finance. Data including market cap, p/e ratio, revenue are as of October 2024.
Integrated Telecommunication Services
• Yahoo Finance link
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Yahoo Finance Description
Verizon Communications Inc., through its subsidiaries, engages in the provision of communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. It operates in two segments, Verizon Consumer Group (Consumer) and Verizon Business Group (Business). The Consumer segment provides wireless services across the wireless networks in the United States under the Verizon and TracFone brands and through wholesale and other arrangements; and fixed wireless access (FWA) broadband through its wireless networks, as well as related equipment and devices, such as smartphones, tablets, smart watches, and other wireless-enabled connected devices. The segment also offers wireline services in the Mid-Atlantic and Northeastern United States, as well as Washington D.C. through its fiber-optic network, Verizon Fios product portfolio, and a copper-based network. The Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and conferencing, corporate networking, security and managed network, local and long-distance voice, and network access services to deliver various IoT services and products to businesses, government customers, and wireless and wireline carriers in the United States and internationally. The company was formerly known as Bell Atlantic Corporation and changed its name to Verizon Communications Inc. in June 2000. Verizon Communications Inc. was incorporated in 1983 and is headquartered in New York, New York.
Q: What is Fixed Wireless Access (FWA)?
Fixed wireless access is a way of servicing internet to homes wirelessly through technologies like 4G or 5G, instead of using fiber or cable infrastructure. The receiver is intended to be stationary, unlike a mobile. Its benefit is providing WiFi access to regions and buildings that lack fiber or cable infrastructure.
Q: What is copper-based network?
Copper is used for traditional cable lines, phone lines and DSL internet lines. The speed of internet using these lines are slower than using fiber-optic cables. Fiber-optic cables use thin strands of glass or plastic encased in protective insulation carrying pulses of light carrying data.
• Yahoo Finance link
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Yahoo Finance Description
AT&T Inc. provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores. It also provides Virtual Private Networks, AT&T Dedicated Internet, Ethernet, data services, cloud solutions, outsourcing, and managed professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband services, including fiber connections, legacy telephony voice communication services, and other VoIP services and equipment to residential customers. This segment markets its communications services and products under the AT&T, AT&T Business, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its owned stores, agents and third-party retail stores. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.
Q: What is VoIP
Voice over Internet Protocol. Using internet broadband to communicate phone calls, video calls and other multimedia.
Q: What does AT&T stand for?
American Telephone & Telegraph. It was a subsidiary of Bell Telephone Company, established by the inventor of the telephone, Alexander Graham Bell, founded in 1885. AT&T was later dismantled into several Regional Bell Operating Companies in 1984. One of them was SBC (Southwestern Bell Corporation), and later acquired the former parent company AT&T and took on its name. Another RBOC, Bell Atlantic, later became Verizon.
Wireless Telecommunication Services
• Yahoo Finance link
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Yahoo Finance Description
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to customers in the postpaid, prepaid, and wholesale and other services. It also provides wireless devices, including smartphones, wearables, tablets, home broadband routers, and other mobile communication devices, as well as wireless devices and accessories; financing through equipment installment plans; reinsurance for device insurance policies and extended warranty contracts; leasing through JUMP! On Demand; and High Speed Internet services. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. It also sells its devices to dealers and other third-party distributors for resale through independent third-party retail outlets and various third-party websites. The company was founded in 1994 and is headquartered in Bellevue, Washington.
Q: What is the key difference of T-Mobile from AT&T and Verizon?
T-Mobile’s trailing and forward p/e is roughly double that of AT&T and Verizon. Although current revenue and profit are lower than its competitors, the growth trajectory is greater for T-Mobile allowing for such valuation. Unlike AT&T and Verizon, T-Mobile does not own cable infrastructure, and instead focuses on its wireless data services. The lead in 5G after the merger with Sprint, no contracts plans, extensive data coverage, competitive pricing have T-Mobile an edge.
Q: What is the history of T-Mobile?
T-Mobile did not start out as an RBOC. VoiceStream Wireless was founded in 1994. Its roots were not with the cable-based telecommunication from the start. Later in 2001, Deutsche Telekom gained plurality ownership in the company and rebranded under the global T-Mobile brand.
Advertising
• Yahoo Finance link
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Yahoo Finance Description
Omnicom Group Inc., together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare. The company’s services include advertising, branding, content marketing, corporate social responsibility consulting, crisis communications, custom publishing, data analytics, database management, digital/direct marketing and post-production, digital transformation consulting, entertainment marketing, experiential marketing, field marketing, sales support, financial/corporate business-to-business advertising, graphic arts/digital imaging, healthcare marketing and communications, and instore design services. Its services also comprise interactive marketing, investor relations, marketing research, media planning and buying, retail media planning and buying, merchandising and point of sale, mobile marketing, multi-cultural marketing, non-profit marketing, organizational communications, package design, product placement, promotional marketing, public affairs, public relations, retail marketing, retail media and e-commerce, search engine marketing, shopper marketing, social media marketing, and sports and event marketing services. It operates in the North and Latin America, Europe, the Middle East and Africa (EMEA), and the Asia Pacific. The company was incorporated in 1944 and is based in New York, New York.
• Yahoo Finance link
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Yahoo Finance Description
The Interpublic Group of Companies, Inc. provides advertising and marketing services worldwide. It operates in three segments: Media, Data & Engagement Solutions, Integrated Advertising & Creativity Led Solutions, and Specialized Communications & Experiential Solutions. The Media, Data & Engagement Solutions segment provides media and communications services, digital services and products, advertising and marketing technology, e-commerce services, data management and analytics, strategic consulting, and digital brand experience under the IPG Mediabrands, UM, Initiative, Kinesso, Acxiom, Huge, MRM, and R/GA brand names. The Integrated Advertising & Creativity Led Solutions segment offers advertising, corporate, and brand identity services; and strategic consulting under FCB, IPG Health, McCann Worldgroup, and MullenLowe Group brands. Specialized Communications & Experiential Solutions segment provides public relations and other specialized communications services, live events, sports and entertainment marketing, and strategic consulting under IPG DXTRA Health, The Weber Shandwick Collective, Golin, Jack Morton, Momentum, and Octagon brand names. The company was formerly known as McCann-Erickson Incorporated and changed its name to The Interpublic Group of Companies, Inc. in January 1961. The Interpublic Group of Companies, Inc. was founded in 1902 and is headquartered in New York, New York.
Q: Why do advertising companies like The Interpublic Group of Companies and Omnicom Group have so many subsidiaries?
Advertising holding companies operate as a sum of specialized agency, rather than a monolithic firm. Each firm could differ in specialization within marketing (digital marketing, traditional advertising, public relations, data analytics, media planning). Some of these focus on the promotion of individual product or service, while some could aim to promote the values of the client company as a whole. Organizing external events or providing advertising strategy is a different area too. Also, each subsidiary could differ in industry (automotive, healthcare, consumer goods, etc.) or by region. Keeping the entities separate following a acquisition retains goodwill and reputation. This form of operation prevents conflict of interest by avoiding one entity taking on competing firms.
Broadcasting
• Yahoo Finance link
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Yahoo Finance Description
Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.). The company operates through four segments: Cable Network Programming, Television, Credible, and The FOX Studio Lot. The Cable Network Programming segment produces and licenses news and sports content for distribution through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors, and other digital platforms primarily in the U.S. Television segment produces, acquires, markets, and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, and operates power broadcast television stations including duopolies and other digital platform; and produces content for third parties. The Credible segment engages in the consumer finance marketplace. The FOX Studio Lot segment provides television and film production services along with office space, studio operation services and includes all operations of the facility. The company was incorporated in 2018 and is headquartered in New York, New York.
• Yahoo Finance link
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Yahoo Finance Description
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.
Cable & Satellite
• Yahoo Finance link
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Yahoo Finance Description
Comcast Corporation operates as a media and technology company worldwide. It operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments. The Residential Connectivity & Platforms segment provides residential broadband and wireless connectivity services, residential and business video services, sky-branded entertainment television networks, and advertising. The Business Services Connectivity segment offers connectivity services for small business locations, which include broadband, wireline voice, and wireless services, as well as solutions for medium-sized customers and larger enterprises; and small business connectivity services in the United Kingdom. The Media segment operates NBCUniversal’s television and streaming business, including national and regional cable networks; the NBC and Telemundo broadcast networks and owned local broadcast television stations; and Peacock, a direct-to-consumer streaming services. It also operates international television networks comprising the Sky Sports networks, as well as other digital properties. The Studios segment operates NBCUniversal and Sky film and television studio production and distribution operations. The Theme Parks segment operates Universal theme parks in Orlando, Florida; Hollywood, California; Osaka, Japan; and Beijing, China. The company also offers a consolidated streaming platforms under the Philadelphia Flyers and the Wells Fargo Center arena in Philadelphia, Pennsylvania; and Xumo. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania.
Q: Under what name does Comcast provide internet service?
Xfinity
Q: Does Comcast own Universal?
Yes. Through the acquisition of NBCUniversal in 2013, Comcast owns Universal Pictures, Universal Studios, Universal Television, NBC, and other Cable networks like USA Network, Syfy, Bravo, and CNBC. In 2020, NBCUniversal launched Peacock, the streaming service.
• Yahoo Finance link
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Yahoo Finance Description
Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based internet, video, and mobile and voice services; a suite of broadband connectivity services, including fixed internet, WiFi, and mobile; Advanced WiFi services; Spectrum Security Shield; in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their fixed wireless internet experience; out-of-home WiFi; and Spectrum WiFi services. It also offers voice communications services using voice over internet protocol technology; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. In addition, the company provides mobile services; video programming, static IP and business WiFi, voice, and e-mail and security services; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App to create data-driven linear TV campaigns for local advertisers. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports networks and news channels. It serves approximately 32 million customers in 41 states. Charter Communications, Inc.was founded in 1993 and is headquartered in Stamford, Connecticut.
Q: What is broadband?
Broadband is high speed internet that is provided through telephone lines, cables for TVs, fiber-optic cables, satellites or via radio signals (4G, 5G). Spectrum is the brand that Charter Communications provides internet to consumers.
Q: “provides static IP”?
In regular cases, dynamic IP will be used. That means internet service providers will allocate IP addresses to devices that are actively connected to the internet. This was crucial under IPv4, where IP addresses were limited. Dynamic IP means personal devices’ IP addresses, especially as seen by the counterparty, will be changing frequently, as that is upto the service provider assigning IPs. Communication services company can provide static IP so that a company’s server can have the same IP, allowing for better access from the end-user. In order for a device with a dynamic IP to operate as a server, port forwarding (if on a home WiFi network), VPN, DDNS mechanisms would need to be explored.
Q: “sells advertising inventory to local sports and news channels”?
Networks such as TBS, CNN, ESPN would arrange global advertisements, however could sell local advertisement slots to communications service provider like Charter Communications. This allows some regional advertisements to be delivered.
Publishing
• Yahoo Finance link
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Yahoo Finance Description
News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates through six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron’s, MarketWatch, Investor’s Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones Energy through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates Monday to Friday, Saturday and Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children’s, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through satellite and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; digital real estate services; and financial services. News Corporation was founded in 2012 and is headquartered in New York, New York.
Q: What is the relationship between News Corporation, News Corp, 21st Century Fox, Fox Corporation?
News Corporation is a mass media corporation controlled by the media mogul Rupert Murdoch. The company was later split in 2013 into News Corp for publishing and 21st Century Fox for media. The 21st Century Fox’s TV business became Fox Corporation in 2019 after The Walt Disney Company acquired the divisions pertaining to the moving picture production, National Geographic etc.
Fox Corporation 10-K
“Thus, K. Rupert Murdoch may be deemed to beneficially own in the aggregate less than one percent of FOX Class A Common Stock and 43.96% of FOX Class B Common Stock.”
“The Company has two classes of common stock that are authorized and outstanding: Class A Common Stock and Class B Common Stock. As a general matter, holders of Class B Common Stock are entitled to one vote per share on all matters on which stockholders have the right to vote, including director elections. Holders of Class A Common Stock are entitled to vote only in the limited circumstances set forth in the Company’s Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”).”
News Corporation 10-K
“Thus, K. Rupert Murdoch may be deemed to beneficially own in the aggregate less than one percent of the Company’s Class A Common Stock and approximately 40.8% of the Company’s Class B Common Stock as of June 30, 2024.”
“Voting Rights—Holders of the Company’s Class A Common Stock are entitled to vote only in the limited circumstances set forth in the Company’s Restated Certificate of Incorporation (the “Charter”). Holders of the Company’s Class B Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders.”
Q: Dow Jones & Company?
Dow Jones & Company is not an exchange. It is a publishing company founded in 1882 by Dow and Jones that covered financial news. The company was ultimately owned by News Corporation in 2007. The famous Dow Jones Industrial Average index was published from 1882 to 2010 under Dow Jones & Company until News Corp sold ownership to CME Group. McGraw Hill Financial, now S&P Global acquired the index from CME Group in 2019. Dow Jones Industrial Average index now has nothing to do with Dow Jones & Company, owned by News Corp.
Movies & Entertainment
• Yahoo Finance link
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Yahoo Finance Description
Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. It has operations in approximately 190 countries. The company was incorporated in 1997 and is headquartered in Los Gatos, California.
Q: When did it start internet streaming?
2007. The company’s original business model was selling or renting DVDs through delivery. Subsequent decrease in bandwidth cost and rise in internet speed boosted their streaming business.
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Yahoo Finance Description
The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners. It also offers direct-to-consumer streaming services through Disney+, Disney+ Hotstar, Hulu, and Star+; sports-related entertainment services through ESPN, ESPN on ABC, ESPN+ DTC, and Star; sale/licensing of film and episodic content to third-party television and VOD services; theatrical, home entertainment, and music distribution services; DVD and Blu-ray discs, electronic home video licenses, and VOD rental services; staging and licensing of live entertainment events; and post-production services. In addition, the company operates theme parks and resorts comprising Walt Disney World Resort, Disneyland Resort, Disneyland Paris, Hong Kong Disneyland Resort, Shanghai Disney Resort, Disney Cruise Line, Disney Vacation Club, National Geographic Expeditions, and Adventures by Disney, as well as Aulani, a Disney resort and spa in Hawaii. It also licenses its intellectual property to a third party for operations of the Tokyo Disney Resort; licenses trade names, characters, visual, literary, and other IP for use on merchandise, published materials, and games; operates a direct-to-home satellite distribution platform; sells branded merchandise through retail, online, and wholesale businesses; and develops and publishes books, comic books, and magazines. The company was founded in 1923 and is based in Burbank, California.
Q: What is the difference between Fox and Fox Corporation?
Disney acquired a big portion of 21st Century Fox in 2019, including its motion pictures divisions, FX and National Geographic. Meanwhile the TV segment kept the business under the name Fox. By the dual network rule, it was impossible for Disney, who already owned ABC, to own another network.
Q: Why does Disney have both Disney+ and Hulu?
Hulu was founded in 2007 as a joint venture between NBCUniversal (then a subsidiary of GE and subsequently acquired by Comcast in 2011), News Corporation (later 21st Century Fox , Providence Equity Partners (Private Equity). The Walt Disney Company later joined in 2009, and in time acquired all the stakes from Comcast and 21st Century Fox to become the full owner in 2023. Some Reddit users have said that all of Disney+ offerings are on Hulu but not vice versa due to licensing restrictions. They are experimenting bundling the Hulu section inside the Disney plus app as well. Hulu only services within the US.
• Yahoo Finance link
Yahoo Finance Description
Live Nation Entertainment, Inc. operates as a live entertainment company worldwide. It operates through Concerts, Ticketing, and Sponsorship & Advertising segments. The Concerts segment promotes live music events in its owned or operated venues, and in rented third-party venues. This segment operates and manages music venues; produces music festivals; creates and streams associated content; and offers management and other services to artists. The Ticketing segment manages the ticketing operations, including the provision of ticketing software and services to clients and consumers with marketplace for tickets and event information through mobile apps, other websites, retail outlets, and its primary websites, such as livenation.com and ticketmaster.com; and provides ticket resale services. This segment sells tickets for its events and third-party clients in various live event categories. This segment offers ticketing services for arenas, stadiums, amphitheaters, music clubs, concert promoters, professional sports franchises and leagues, college sports teams, performing arts venues, museums, and theaters. The Sponsorship & Advertising segment sells international, national, and local sponsorships and placement of advertising, including signage, online, and promotional programs; rich media offering that comprises advertising related with live streaming and music-related content; and ads across its distribution network of venues, events, and websites. This segment also manages the development of strategic sponsorship programs, as well as develops, books, and produces custom events or programs for specific brands. It owns, operates, or leases entertainment venues. The company was formerly known as Live Nation, Inc. and changed its name to Live Nation Entertainment, Inc. in January 2010. Live Nation Entertainment, Inc. was incorporated in 2005 and is based in Beverly Hills, California.
Q: How does the economics of the concert business work?
Artists or their management company, will work with booking agents. They will negotiate with promoters of tours and festivals and get a 10-15% commission. The promoters funds the concert, which requires upfront payment before revenue has been generated. They secure the venue, determine pricing of tour and advertise in the local area, and subcontract to local promoters. Concert providers like Live Nation have integrated the role of the booking agent and promoter. They also own ticket sales channels.
• Yahoo Finance link
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Yahoo Finance Description
Paramount Global operates as a media, streaming, and entertainment company worldwide. It operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. The TV Media segment operates CBS Television Network, a domestic broadcast television network; CBS Stations, a television station; and international free-to-air networks comprising Network 10, Channel 5, Telefe, and Chilevisión; domestic premium and basic cable networks, such as Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, and CBS Sports Network; and international extensions of these brands. This segment also offers domestic and international television studio operations, including CBS Studios, Paramount Television Studios, and Showtime/MTV Entertainment Studios; CBS Media Ventures, which produces and distributes first-run syndicated programming; and digital properties consisting of CBS News Streaming and CBS Sports HQ. The Direct-to-Consumer segment provides a portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, BET+, and Noggin. The Filmed Entertainment segment produces and acquires films, series, and short-form content for release and licensing around the world, including in theaters, on streaming services, on television, through digital home entertainment, and DVDs/Blu-rays; and operates a portfolio consisting of Paramount Pictures, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. It also offers production, distribution, and advertising solutions. The company was formerly known as ViacomCBS Inc. and changed its name to Paramount Global in February 2022. The company was founded in 1914 and is headquartered in New York, New York. Paramount Global is a subsidiary of National Amusements, Inc.
Q: Does Paramount Global own any cable infrastructure?
No. Paramount uses cable infrastructure of companies like Comcast, Charter Communications, AT&T, and Verizon.
Interactive Home Entertainment
• Yahoo Finance link
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Yahoo Finance Description
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation through owned and licensed brands, such as EA SPORTS FC, Battlefield, Apex Legends, The Sims, Madden NFL, Need for Speed, Titanfall, and F1 brands. The company licenses its games to third parties to distribute and host its games and content. It markets and sells its games and services through digital distribution and retail channels, as well as directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
Q: What are “licensed brands”?
Game developing companies license brands such as FIFA, NFL, F1, or Star Wars, to use the intellectual property (logo, name, character, team etc.) to create games for a royalty or fee.
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Yahoo Finance Description
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier’s Civilization, XCOM series, Borderlands, and Tiny Tina’s Wonderland names. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, the company offers Kerbal Space Program and OlliOlli World; free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille, Golf Rival, Harry Potter: Puzzles & Spells, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, Toon Blast, Top Eleven, Top Troops, Toy Blast, Two Dots, Words With Friends, and Zynga Poker; and hyper-casual mobile titles, including Fill the Fridge!, Parking Jam 3D, Power Slap, Pull the Pin, Twisted Tangle, and Tangled Snakes. Its products are designed for console gaming systems; personal computers; and mobiles comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.
Q: Who owns Assassins Creed, Fortnight, League of Legends, Valorant?
Assassin’s Creed is owned by the french video game company Ubisoft. Fortnight is owned by Epic Games. LOL and Valorant is owned by Riot Games, a subsidiary of Tencent.
Q: Isn’t Grand Theft Auto made by Rockstar Games?
Yes. Rockstar Games is a subsidiary of Take-Two Interactive.
Interactive Media & Services
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Yahoo Finance Description
Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.
Q: What are some examples of “Other Bets”?
Waymo for self-driving cars, Wing for drone delivery service, Verily for health-care service, Calico for aging research.
Q: What is the difference between GOOGL and GOOG?
From 10-K
“Our Class B stock has 10 votes per share, our Class A stock has one vote per share, and our Class C stock has no voting rights. As of December 31, 2023, Larry Page and Sergey Brin beneficially owned approximately 86.5% of our outstanding Class B stock, which represented approximately 51.5% of the voting power of our outstanding common stock.”
“Shares of Class B common stock may be converted at any time at the option of the stockholder and automatically convert upon sale or transfer to Class A common stock.”
“The rights, including the liquidation and dividend rights, of the holders of our Class A, Class B, and Class C stock are identical, except with respect to voting. Furthermore, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our Board of Directors from declaring or paying unequal per share dividends on our Class A, Class B, and Class C stock.”
Q: GOOG share price: $164.52, GOOGL share price: $163.24. Why is GOOG more expensive GOOGL is everything that GOOG is plus voting rights?
Answer found on Reddit is that the value of voting power is negligible since Larry Page and Sergei Brin controls majority voting rights through Class B shares. Meanwhile, the company regularly buys back class C shares to pay out as compensation yielding more liquidity.
Q: How is the market capitalization of Google or Berkshire Hathaway calculated?
“As of July 16, 2024, there were 5,859 million shares of Alphabet’s Class A stock outstanding, 866 million shares of Alphabet’s Class B stock outstanding, and 5,585 million shares of Alphabet’s Class C stock outstanding.”
($163.24 * (5,859m+866m)) + ($164.52*5,585m) =$ 2.017T
It seems that conversion of Class B shares to Class A shares would be 1 to 1, hence the calculation above. $2.017T is identical to what’s shown on Yahoo Finance.
• Yahoo Finance link
• Company website link
Yahoo Finance Description
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California
• Yahoo Finance link
• Company website link
Yahoo Finance Description
Match Group, Inc. engages in the provision of dating products. Its portfolio of brands includes Tinder, Hinge, Match, Meetic, OkCupid, Pairs, Plenty Of Fish, Azar, BLK, and Hakuna, as well as a various other brands, each built to increase users’ likelihood of connecting with others. Its services are available in over 40 languages to users worldwide. The company was incorporated in 1986 and is based in Dallas, Texas.
Q: When was Tinder founded and how did it become a part of Match Group?
Tinder was founded in 2012. The company merged with Match Group in 2017 for $3b.
Q: Which company owns Bumble?
Whitney Herd founded Bumble after quitting Tinder in 2014. The company is listed on Nasdaq.
Q: What is the market share for dating apps in NA?
Based on downloads of apps, Tinder is accounts for close to 30%. Then it is usually Bumble, Badoo and Plenty of Fish each about 10-20%.
Written from scratch by Meston Ecoa.
May contain incorrect data and information.
Company overview and data from Yahoo Finance. Earnings call transcripts from Seeking Alpha. Answers for self-devised questions are summaries of Google and ChatGPT search results.