the

DC Comics Owner To Lose $29 Billion On Sale OF DirecTV

dc comics is owned by att

and 18t thought it would be a great idea

to spend 67 billion dollars

on buying direct tv in 2015.

so um the result of that is

now they're not going to um well they're

going to have 29 billion dollars less to

play with

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warner media parent a t looks to shed

stake

in directv of course warner media is the

parent company and owner of dc comics as

well

this is coming from deadline warner

media parent att

is looking to sell a chunk of satellite

broadcaster directv

to private equity investors those guys

are also known as like vulture

capitalists

um we'll go into that a little bit

according to the wall street journal

as the heavily indebted wireless giant

pivots to the media

well when it's pivoting to media meaning

it's focusing on

trying to create value out of warner

media warner media

and time warner was another company they

bought

that they bought for like 108 billion

they bought directv

for uh 67 billion it was a

different company completely they tried

smooshing them together

that didn't work so they took directv

put it off to the side

and we're like okay hopefully we'll

figure out what to do with this freaking

mess

separate from warner media at t is um

gonna focus on building up warner media

and then we'll probably

uh sell it all or in part

what a what a gigantic mess suitors

include

apollo global management which is said

to have expressed interest last year

and platinum equity so apollo global

management the private equity company

this was started by a guy named leon

black leon black was one of the top guys

at drexel burnham

lambert and basically the junk bond

kings

michael milken and all that crew and

what they do is they heavily leverage up

companies

a lot of debt on the companies uh and

sometimes they go and do bankruptcies

and restructure the companies

um this company directv that we're

talking about that they're looking to

sell

again they they bought it for this is

incred

it's a lot of money they bought it for

um

stock and cash of 49 billion dollars so

that man

meant that they gave up 18t stock

to the owners of directv and cash

payments

and agreed to take over 19 billion

dollars of additional debts

that directv owed to people

that they borrowed money from so this

would be like buying a house for 49

billion dollars and saying i will also

pay your 19 million

billion dollar mortgage that you still

owe so the the combined price

is really like that 67 billion dollar

number

but directv has not been doing well

it's been a huge distraction to them um

and now uh

the reports are coming out that they're

talking to companies about selling it

att acquired directv 2015. now it says

here for

49 billion but they're leaving out

um the assumed debt that they agreed to

pay

at t which was another 19 billion dollar

i mean

ridiculous ridiculous high amounts of

money

as pay tv services shed subscribers in

recent years

a deal today could value the division at

20 billion

dollars well less than half its original

price the wall street journal said

that's where that 29 billion loss comes

in

so they pay 49 billion

plus 19 million in assumed debts agreed

to pay their debts

on top of that and now they're planning

on valuing the division at 20 billion

dollars

because they can't get 49 billion for it

because it's the business is worth

substantially less than they paid for it

part of it is mismanagement a big part

of it is mismanaged and part of it is

that

directv like no one's interested in

direct tv really

people aren't interested in these sorts

of satellite cable services anymore

they're all starting to die

as the subscription services like

netflix

and amazon prime and even advertising

supported subscription services

are taking off people don't want the

cable services as much anymore there's

tons of cord cutting

they bought it at exactly the wrong time

and so far they've lost 29 billion

dollars

the telco has also considered merging

the business with small arrival dish

network which could

trigger anti-trust concerns

uh att has a whopping 180

billion dollars in debt a big chunk

taken on when it bought time warner

for 80 billion it was it was over 100

billion

these guys don't include assumed debt in

their prices debt is a real thing if

you're going to take over someone's

debts

it's a real part of the price it's

explored selling various assets many

deals across sectors were put on a whole

uh by the health event the wireless and

broadband company has been pivoting to

media acquiring

uh hbo warner brothers and a family

cable wealth or

yeah so they acquired obviously the time

warner company which includes everything

in warner media

and a family of cable networks in the

time warner deal paving the way for it

to launch the streaming service hbo max

in may

to give you an idea like so their hope

for warner media really is

hbo max being successful hbo is also by

itself a really successful business

they have a lot of cable subscribers but

you know as we talked about before

uh cable uh cord cutting is a real thing

and hbo is gonna have to evolve into

hbo max together uh then they do have a

lot of subscribers for

hbo max it launched pretty well they

have like four million subscribers in

their first

uh two months but at fifteen dollars per

subscriber

uh but they got a lot of catching up to

do with uh netflix and disney plus

the warner media division recently went

through a major overhaul with division

streamline

and major management changes and layoffs

yeah so they had um

they had about a thousand uh executives

laid off

from warner media a lot of dc comics

people if you listen to my channel

then you're definitely aware of that so

um

yeah i mean this is incredible this is

incredible they could manage to lose 29

billion

on this one transaction uh of buying

this company

and what they're probably going to do

because they're working with um

leon black's group which is pretty smart

is they will take directv which is a

separate company that they own

all of they'll sell it off to

uh leon black's company here apollo

global management said that they're

buying like um a stake in it but

eventually they'll wind up

probably acquiring all of it they will

bankrupt

directv apollo global management will

they will definitely restructure slash

bankrupt that

they're not paying uh off all that debt

at um directv but what that means is

if they at t can sell

to apollo management directv

even for 20 billion they'll have a 29

billion dollar

loss on their accounting which they can

use in the future for tax benefits of a

loss

plus they'll probably get apollo to

assume

the 18 which is probably now 20 billion

dollars worth

of debt uh that's associated with uh

directv that was never paid off yet

so that will mean it could reduce

um at t's debt by now it's at 180

billion

as much as 40 billion dollars so they'll

take a 29 billion

loss but they could actually cut their

overall debt by as much as um

40 billion dollars and then apollo will

make its money by

uh strip mining the company whatever's

left of directv

doing a ton of layoffs that would be

very ugly see this is the great thing

about a company like apollo management

they know how to cut up slice dice um

and eviscerate a company and just grab

the parts that are still worth something

and do something with them

so their management team like they can

put their management guys on it and be

like yeah we're just gonna rip it up and

shred it

so if you thought they were shredding dc

comics and warner media

what they're gonna do when they bring in

a company like

private equity guys and they bring in

apollo management

leon black he will chop it into a

million pieces and eviscerate it and

bankrupt it

and they will be way ahead of the game

financially um apollo manager they know

how to do that

so they're really it's not so much that

they're going to have like

management vision as much as like these

are the guys who

will rip the company to shreds but that

said

uh 29 billion dollar loss for a t

and 40 billion off their uh

debt that actually helps their debt a

lot and no more headache

and no more concern about how the heck

are we going to manage this big

freaking mass direct tv they don't have

to management they just have to let

apollo global management uh

rip it up so i think that's what's going

to happen

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