Bill Simmons is debuting on Netflix in January; Mike Cavanagh signs a new contract with Comcast; and Netflix refinances some of its $59 billion bridge loan in WBD bid. Plus news on Paramount-WBD, the the Rose Parade, ESPN Deportes and Femi Abebefe.
Simmons making Netflix debut in January, streaming live on Sundays
Bill Simmons will officially bring his eponymous podcast to Netflix on Sunday, Jan. 11, starting with a live episode at 11:30 PM ET, per Peter White of Deadline. Simmons will be streaming live every Sunday, the first of which occurs after the prime time NFL Wild Card playoff game on NBC. Video episode replays are going to be available through Spotify and Netflix, while audio replays will remain accessible on various podcasting platforms.
Select content from The Ringer will arrive on the streaming platform as part of a video podcast deal between Spotify and Netflix that also includes other sports programs hosted by personalities such as Todd McShay, Zach Lowe and Sheil Kapadia. Netflix has forged similar agreements in recent months with iHeartMedia and Barstool Sports as the company works to broaden its audience and compete against other video services.
During a recent interview on “The Varsity” podcast, Netflix VP of sports Gabe Spitzer said that the company is looking to grow its involvement in the podcasting space over time. Spitzer also revealed that there will be a space on the streaming platform to view the podcast content and that the algorithm could try and filter users to the shows if they have engaged with podcast content.
Part of the narrative around the podcast deals has related to Netflix taking content away from YouTube, which, per Nielsen, held a 12.9% share of total day television viewership last month. “For us, it’s less about taking something away and more about what can we do that brings people to Netflix and is exclusive to Netflix,” Spitzer said. “So I don’t think it’s, ‘We have to take this from them to give it to us.’ It’s, ‘What’s going to be most valuable to our members?'”
Cavanagh inks new contract with Comcast
Comcast president Mike Cavanagh has signed a new contract with the company ahead of his promotion to co-CEO of the media conglomerate in early January, the company disclosed in an SEC filing on Tuesday. The deal extends his employment with Comcast through January 1, 2029 and grants him performance-based stocks “valued at approximately $35 million” that vest after three years. Cavanagh is also receiving a $250,000 raise, garnering an annual base salary of $2.75 million while retaining a cash bonus target of three times such.
Cavanagh earned $28.3 million in compensation last year, which was down by 4.5% from the previous year. In the last three years, he has collected more than $98 million in compensation through a mix of salary, stock and option awards and other categories. Concurrent with his promotion to co-CEO of Comcast in early January, he is also going to become a member of its board of directors. Brian Roberts will continue working as chairman and co-CEO of the media conglomerate.
Cavanagh arrived at Comcast a decade ago as its chief financial officer after stints working at The Carlyle Group and JPMorgan Chase & Co. Seven years later, he was promoted to president and ended up adding oversight of NBCUniversal shortly thereafter upon the departure of CEO Jeff Shell. NBCUniversal is preparing to spin out a majority of its cable networks to Versant after the close of trading next Friday, some of which include USA Network, Golf Channel, CNBC, MS NOW and Oxygen.
During the most recent fiscal quarter, Comcast accrued $31.2 billion in revenue (-2.7% YoY) on adjusted EBITDA of $9.67 billion (+0.7% YoY) with $4.95 billion in free cash flow (+45.2% YoY). The company’s Peacock streaming service posted a loss $217 million in Q3 — actually an improvement over a year ago (-$436M) — with its subscriber count remaining stagnant at 41 million this year. Speaking at an investor conference earlier in the fall, Cavanagh emphasized YoY P&L improvement at Peacock and touted the streamer’s sports contracts.
Netflix refinances some of bridge loan amid WBD quest
Netflix has refinanced some of its $59 billion bridge loan amid its quest to acquire Warner Bros. streaming and studio assets, according to an SEC filing on Monday. The streaming provider entered a credit agreement with its lenders that grants a $5 billion unsecured revolving credit facility and two delayed draw term loans (DDTL) for $10 billion each. The $25 billion in refinancing represents “a more permanent and cost effective funding structure,” resulting in approximately $34 billion being syndicated.
The delayed draw term loans are unsecured two-year and three-year agreements, and Netflix can use its proceeds towards the cash price of the Warner Bros. acquisition, pay related costs or “to refinance certain indebtedness.” Furthermore, the DDTL and revolving credit agreements both require Netflix to maintain an EBITDA at least three times its consolidated interest expense.
Netflix entered into a commitment letter with Wells Fargo, BNP Paribas and HSBC for an unsecured bridge loan earlier in the month. Wells Fargo is acting as the administrative agent for both the DDTL and revolving credit agreements. For the latter, Netflix needs to repay the amount borrowed by the third anniversary of the transaction close or in late December 2030, whichever comes first. The company can exercise two options under the agreement, each of which extends the maturity date by one year.
Netflix reached an agreement to acquire Warner Bros., the soon-to-be independent, publicly traded company [Q3 2026] holding WBD streaming and studio properties, at an enterprise value of $82.7 billion. The Netflix deal is a cash-and-stock transaction for $27.75/share under which WBD shareholders will also retain separate stakes in Discovery Global, which will hold a retained stake of up to 20% in Warner Bros. that could be sold prior to the formal separation.
Plus: Paramount-WBD, Rose Parade, ESPN Deportes, Femi Abebefe
- Alex Fitch, the portfolio manager and director of U.S. research for Harris Oakmark (estimated to hold about 4% of WBD shares), said that the changes within Paramount’s bid for the entirety of Warner Bros. Discovery “were necessary, but not sufficient,” per Ross Kerber and Dawn Kopecki of Reuters. Fitch wrote that he sees “the deals as a toss-up” while noting the associated cost of changing course, and he affirmed that Paramount would need to “provide a greater incentive” if it “is serious about winning.”
- ESPN “SportsCenter” anchors Kevin Neghandi and Hannah Storm will return as hosts of the Rose Parade on ABC and work alongside reporter John Naber on New Year’s Day. The annual tradition precedes ESPN coverage of the Rose Bowl Game between No. 9 Alabama and No. 1 Indiana at 4 PM ET.
- Manuel Cerdeira will serve as the VP of production for ESPN Deportes and ESPN Mexico, it was revealed earlier this week, granting him oversight for programs and live events across the networks. Cerdeira has worked for ESPN since 2003, most recently as a coordinating producer, and he will now report to Rodolfo Martinez, SVP of international and ESPN Deportes production.
- Femi Abebefe hosted his final episode of “You Better You Bet” on BetMGM Network on Monday as the show prepares to join the Westwood One Sports lineup next week. Abebefe’s exit comes just over a year after Audacy inked a content partnership with NBC Sports that placed the sports betting program on the NBC Sports NOW FAST channel.
*Note: A previous version of this story indicated that Netflix’s repayment applied to both the DDTL and revolving credit agreement. That has been corrected to indicate that it only applies to the latter.
