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Jan. 29, 2020 02:08PM EST
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May. 16, 2021 10:49PM EST
AT&T in talks with Discovery to combine media assets
AT&T is in talks with media giant Discovery about merging its media assets, like CNN, TBS and TNT, according to two sources familiar with the discussions.
Why it matters: A potential merger could allow AT&T and Discovery to better compete with entertainment giants like Disney and Netflix in the video streaming wars.
Details: According to Bloomberg, which first reported the news on Sunday, the companies are still figuring out how the deal would be structured.
- Variety suggests the companies could either combine their assets through a merger, or create joint venture, where they would both own part of the combined new media giant.
- AT&T recently formed a joint venture with private-equity giant TPG to offload its video assets, including its satellite TV brand DirecTV, its digital skinny bundle service "AT&T TV" and its internet-based TV service "U-Verse."
Be smart: AT&T and Discovery have both launched general entertainment streaming platforms in the past year, but neither HBO Max nor discovery+ come close to the number of subscribers of Disney+ or Netflix.
Data: Company filings; Chart: Axios Visuals
By the numbers: A merged company's subscriber numbers will still pale in comparison to the streaming giants.
- AT&T reported in January that it had 17.2 million HBO Max "activations." An activation is when someone that pays for its service, actually turns it on and uses it.
- Activations can come from someone purchasing the HBO Max digital streaming service as a standalone product, or from people who have purchased HBO — the premium cable channel — and have activated their complimentary HBO Max subscriptions.
- Because AT&T no longer reports "activations" it's impossible to say just how many people pay for and have activated HBO Max as of today. A fair estimate would be around 20 million people. For now, HBO Max is only available domestically. It will start rolling out globally in June.
Between the lines: A combination of assets could result in a media company worth over $150 billion in enterprise value, per the Financial Times. Discovery today has a market cap of nearly $17 billion. Its value reflects its nearly $12 billion acquisition of Scripps Networks Interactive for in 2018.
- Discovery has used the content from the lifestyle cable networks it bought from Scripps, like Food Network and HGTV, to build its streaming service, discovery+. It also has international sports rights. It owns Eurosport, the European sports TV network and the GolfTV streaming network.
- AT&T’s crown jewel is HBO, the cable network if acquired via its acquisition of Time Warner and the namesake of its streaming service, HBO Max. It also owns CNN, worth about $10 billion, as well as other cable channels, like TNT and TBS — both of which have entertainment and live sports. AT&T also owns Warner Bros., the movie studio that sources say is worth around $40 billion.
Catch up quick: Analysts and investors have expressed concerns about AT&T's media strategy, since its $85 billion acquisition of Time Warner in 2018.
- In late 2019, AT&T faced pressure from activist investor Elliott Management, for not having a clear strategy for its purchase of Time Warner. Elliott later divested its stake in AT&T.
- Other telecom giants, like Verizon, have struggled to make sense of their media assets. Verizon this month sold its media arm, which includes AOL and Yahoo!, for $5 billion to private equity firm Apollo Global Management. It purchased both assets for around $10 billion just a few years earlier.
What to watch: While it’s still unclear how serious talks are between the two companies, some reports suggest the deal could be announced as soon as this week.
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Jan. 16, 2021 01:00PM EST
U.S. gun sales hit all-time high as threats of political violence grow
Data: FBI; Chart: Andrew Witherspoon/Axios
Firearms background checks in the U.S.hit a record high in 2020.
The big picture: This past year took our collective arsenal to new heights, with millions of Americans buying gunsfor the first time. That trend coincides with a moment of peak political and social tension.
By the numbers: According to FBI statistics, more than 39.5 million firearms background checks were processed in 2020, by far the most since the agency began keeping records in 1998.
- Nearly 4 million checks were processed in December alone — the single busiest month ever — and the total for 2020 was almost 40% higher than in 2019, which had been the previous record-holder.
- State after state after state — both those with lax firearms laws and those with tighter restrictions — reported record gun sales.
The catch: FBI firearmsbackground checksare an imperfect metric for gun sales — they're also carried out during applications that don't involve firearms purchases, like for a concealed carry permit — but with no other federal data for tracking sales, they're considered the best existing indicator.
Be smart: While background checks have increased nearly every year over the past decade, what happened in 2020 goes beyond the sheer scale of the surge.
- In the past, sudden spikes in firearms sales were generally prompted by fears of tightening gun control laws — usually in the aftermath of a mass shooting event or the election of liberal Democrats — but 2020's surges seem to be connected to more general fears.
- March — the month when pandemic restrictions snapped into place — saw what was then the biggest month on record, only to be eclipsed in June during the peak of the protests around George Floyd's murder.
- Nor was 2020's increase simply a matter of existing gun owners expanding their arsenals. The National Shooting Sports Foundation (NSSF) estimates nearly 5 million Americans bought a gun for the first time last year.
- And it's across the political spectrum. As Politico reported in October, a number of those newgun buyers include Democrats and voters who said they were opposed to President Trump but still feared for their own safety.
Of note: A fascinating study published in JAMA last week surveyed thousands of Californians and found a notable rise in fears about violence because of the pandemic — especially worries about lawlessness — with a resulting increase in firearms acquisition and less secure storage of guns.
- According to statistics compiled by the reporter Jeff Asher, the murder rate was up 36.7% in 57 reporting areas through September, with big cities like Los Angeles, Chicago and New York all seeing increases higher than 30%.
Context: These numbers stand against the backdrop of the insurrection at the Capitol on Jan. 6 and more general fears about growing political violence.
- As more details are reported about the insurrection, it's becoming clear that police officers' initial reluctance to engage the rioters at the Capitol was likely due at least in part to the fact that many of them were clearly well-armed.
- While data has yet to be compiled for the first two weeks of 2021, gun shops are reporting further spikes in sales following the riots.
What they're saying: "The potential for chronic political violence in the United States is rising," says DJ Peterson, president of Longview Global Advisors. "You have a large number of guns and ammunition in public hands, and a large share of the population has military or paramilitary training."
Yes, but: Whatever political violence is in store, the U.S. is unlikely to end up like other countries that have been torn apart by civil war, in part because the American military — even though it has real problems with right-wing extremism within its ranks — remains nonpolitical and capable of countering any insurrection.
- Still, the combination of many guns — an estimated 434 million firearms are in civilian possession, more than one for every American — and collapsing public trust will be a combustible one for the foreseeable future.
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Jan. 05, 2021 10:00AM EST
The hunt for alien life heats up in 2021
The decades-long search for life elsewhere in the universe is building to a crescendo in 2021.
Driving the news: Three new Mars missions are slated to arrive at the Red Planet in February and a powerful space telescope is expected to finally launch this year.
Details: NASA's Perseverance rover's landing site is thought to be the geological remains of a river delta — and one of the best places on Mars to search for signs of past life.
- The rover is also going to cache interesting looking rocks for return to Earth on a future mission so scientists can analyze them for signatures of life that might include fossilized hints that microbes once lived in those rocks.
- Two Mars missions from China and the United Arab Emirates will also study the Red Planet, focusing on its geology and atmosphere, which would affect our understanding of any past life on Mars.
NASA is also expected to launch its long-delayed James Webb Space Telescope, which could help scientists gather more data on habitable planets around other stars.
- Hunts for intelligent life that creates radio waves, including the well-funded Breakthrough Listen project, are also continuing to methodically search the skies for these possible signs of life.
- China's FAST radio telescope — the largest in the world — plans to allow international scientists to use the powerful tool in 2021.
Between the lines: The search for life today isn't just about finding Earth 2.0 or even microbial life on Mars.
- Scientists are following up on last year's discovery that there may be a gas in Venus' atmosphere that could indicate life in the planet's clouds.
- That finding is helping to widen the scope of the search for life elsewhere, according to astrophysicist Jessie Christiansen.
- "[I]t doesn't need to be a balmy beach on the side of a tropical ocean somewhere where a few strands of proteins come together," Christiansen told Axios.
The big picture: Astronomer Frank Drake famously estimated there are on the order of about 10,000 detectable societies in our galaxy.
- If that's correct, "[y]ou have to look at a few million [star systems] to find one,” astronomer Seth Shostak of the SETI institute told Axios. Now, he says, researchers are getting closer to surveying that many stars.
- So far, the hunt for life beyond Earth has only focused on scanning a relatively small amount of the sky for radio waves from elsewhere and scientists have only recently figured out that most stars have planets around them.
What to watch: LUVOIR and HabEx, two proposed space telescopes NASA is considering building, would characterize and find possibly Earth-like worlds around distant stars.
- "That's the holy grail in terms of looking for life because that's the one place we know that life has happened: on an Earth-like planet around a star like the Sun," Christiansen said.
Yes, but: While all of these missions will set scientists up to figure out more about whether and where life might exist elsewhere in our universe, it's no guarantee they'll actually find it.
- Scientists have found hints of possible life on Mars and potentially habitable planets for years, but knowing whether any hard evidence is actually a sign of life is far more difficult.
- "The real problem is you cannot guarantee that if you spend this amount of money, you will book success," Shostak said of radio wave hunts in particular.
- These missions, however, will focus the search.
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