Moffett’s upgrade came the same day PricewaterhouseCoopers issued its quarterly report on mergers and acquisitions in the media and entertainment industries. Deal values reached $76 billion in the U.S. in the second quarter, up from $39 billion in the first quarter. Two weeks after executives at Walt Disney, Viacom and others raised the specter of cord-cutting as an actual problem as opposed to a theoretical one for the TV industry, one Wall Street firm has upgraded the entire cable industry.
- Charter closed Wednesday at $188.20 and Comcast closed at $59.92. Moffett’s upgrade comes six months after he downgraded the sector, arguing back then that cord-cutting wasn’t being factored into stock prices enough, nor was President Barack Obama’s desire to let the FCC further regulate the Internet.
- The dominant deal was Charter’s planned $56 billion acquisition of Time Warner Cable.
- The research and accounting firm broke entertainment and media into 10 sub-sectors and “cable” led all others in deal value, with five deals valued at $63 billion, but “advertising and marketing” led in terms of deal volume, with 57 deals valued at $1.2 billion.