Richard Greenfield

Rich Greenfield asked Gunnar Wiedenfels about the anticipated leverage for Discovery Global post-spin-off, specifically if a 3-4 times leverage ratio is sustainable given its free cash flow dynamics, and why Versant is not considered a suitable comparable for Discovery Global.

Answer

CFO Gunnar Wiedenfels stated that Discovery Global's projected 3.3 times net leverage is absolutely sustainable and supportable, expecting single B or low double B ratings. He highlighted Discovery Global's opportunities, including unmatched international scale, iconic brands, trusted journalism (CNN), a world-class sports portfolio, and a strong digital footprint. He noted fundamentally different international ad sales trends (flat to slightly up) and the profitability of discovery+. He also clarified that the board and management are focused on optimizing shareholder value and do not anticipate moving debt around, with the proxy's $0-$2 billion estimate providing wiggle room.

Rich Greenfield asked about the sustainability of Discovery Global's leverage post-spin-off, specifically if 3-4 times levered is achievable given its free cash flow dynamics, and why Versant is not considered a good comparable for Discovery Global.

Answer

CFO Gunnar Wiedenfels highlighted Discovery Global's international scale, iconic brands, trusted journalism (CNN, TVN), sports portfolio, and digital footprint. He emphasized fundamentally different international trends, including flat to slightly up international ad sales for 2026, and the high-quality, high-impact sports portfolio. Wiedenfels confirmed that Discovery Global's projected 3.3 times net leverage is sustainable and supportable, expecting single B or low double B ratings. CEO and President of Global Streaming and Games JB Perrette clarified that the company aims to optimize shareholder value and does not anticipate needing to move debt around.

Rich Greenfield inquired about the engagement and activation strategy for wholesale ad-supported streaming subscribers compared to direct retail customers. He also asked for thoughts on the 'Wizard of Oz' experience at the Sphere.

Answer

CEO & President of Global Streaming and Games, JB Perrette, detailed that wholesale partnerships are evaluated on an LTV basis and that WBD actively works with partners to drive activation and upsells, citing Australia as a success. President & CEO David Zaslav praised the innovative 'Wizard of Oz' Sphere project and noted WBD is also developing its own project for the IP.

Rich Greenfield asked about the engagement of ad-supported subscribers acquired through wholesale MVPD deals versus direct sign-ups and the strategy to market to them. He also asked for David Zaslav's thoughts on the 'Wizard of Oz' experience at the Sphere.

Answer

Global Streaming CEO JB Perrette explained that wholesale partnerships are evaluated on a long-term value (LTV) basis and that activation rates are trending above expectations, with significant upsell opportunities. President & CEO David Zaslav praised the innovative 'Wizard of Oz' project at the Sphere as a credit to WBD's library.

Richard Greenfield sought clarification on the financial impact of the NBA contract changes, asking for a quantification of the net cost or savings in Q1 and Q2 of 2025 and the expected savings in 2026.

Answer

CFO Gunnar Wiedenfels confirmed that 2025 will be impacted by an overlap of outgoing and incoming sports rights, modeling a roughly $300 million cost increase for the year, with Q2 bearing a large portion. He stated that a moderate tailwind will begin in Q4 2025, followed by a 'very significant improvement' and material step-down in sports rights expenses in 2026 after the current NBA contract ends.

Richard Greenfield asked about the expected net sports cost savings in 2026 versus 2025, whether WBD is interested in acquiring other available sports rights, and if new affiliate deals include minimum penetration guarantees for Max.

Answer

CEO David Zaslav stated WBD is disciplined with sports, viewing them opportunistically rather than as a necessity, and is focused on building value through core IP. CEO of Global Streaming and Games JB Perrette explained that affiliate deals are not one-size-fits-all; some hard bundles include penetration commitments while others do not. CFO Gunnar Wiedenfels specified that WBD expects 'several hundred millions of dollars' in sports expense to come out in 2026.

Richard Greenfield asked for commentary on the upcoming global renewal with Comcast and Sky, questioning the company's confidence in securing a favorable deal without the NBA rights and its importance for the sustainability of cable network cash flows.

Answer

CEO David Zaslav expressed confidence in the renewal, citing his long-standing business relationship with Comcast's leadership. He emphasized that Warner Bros. Discovery's content provides significant value to the basic cable bundle and pointed to other successful partnerships with Comcast, such as Harry Potter, as evidence of their ability to create mutual value.

Rich Greenfield sought clarification on Spotify's rationale for entering the physical book-selling market.

Answer

Gustav Söderström, Co-CEO, clarified that Spotify does not hold inventory but views physical books as part of the same holistic book market from a consumer perspective. The move is consumer-led, aiming to be a complete 'media partner' by enabling seamless syncing between physical/e-books and audiobooks. Alex Norström, Co-CEO, reiterated bullishness on audiobooks, highlighting rapid catalog expansion and positive publisher feedback, emphasizing Spotify's ambition to build unique solutions for consumer problems.

Rich Greenfield asked for clarification on Spotify's rationale for entering the physical book-selling market.

Answer

Co-CEO Gustav Söderström clarified that Spotify is not holding inventory but views physical books as part of the broader consumer book market, driven by user demand for seamless transitions between audio and reading. Co-CEO Alex Norström reiterated bullishness on audiobooks, highlighting catalog expansion, positive publisher feedback, and a consumer-led innovation to become a comprehensive media partner.

Rich Greenfield asked about the significance of TV-based usage to Spotify today as a percentage of overall usage, following the updated Apple TV app, and its role in video advertising aspirations.

Answer

Gustav Söderström, Co-President, CPO, and CTO, explained that building TV experiences is part of the ubiquity strategy, as using Spotify in more situations (car, desktop, TV) increases usage, active days, and retention. He noted exciting engagement metrics and room for user growth, with advertising being a secondary benefit to the core driver of ubiquity and retention. Christian Luiga, CFO, added a lighthearted note about the improved Apple TV app.

Rich Greenfield questioned why Spotify can't raise prices at a faster cadence in developed markets, given its robust engagement, citing NBC's Peacock raising prices by 38%.

Answer

Alex Norström, Chief Business Officer & Co-President, reiterated the focus on the value-to-price ratio and putting subscribers first. He stated that pricing is a tool used continuously via a portfolio approach, not a binary event, and recent price hikes have shown strong retention. CEO Daniel Ek added that for a large-scale subscription business, managing retention and avoiding churn is paramount.

Rich Greenfield of LightShed Partners questioned the drivers of strong subscriber growth, asking if it was due to product improvements versus marketing, and also probed the company's philosophy on balancing price increases with subscriber growth momentum.

Answer

Co-President and CBO Alex Norström attributed strong subscriber growth to a focus on increasing the product's value-to-price ratio, which he described as a more efficient investment than incremental marketing. CEO Daniel Ek added that the team has improved at leveraging organic media, like the FC Barcelona partnership, and uses AI for better targeting. Regarding pricing, Alex Norström stated that price increases are part of the toolbox, used after adding significant value, while Daniel Ek emphasized that in early growth phases, a low price is key, but as markets mature, pricing becomes an important lever.

Rich Greenfield of LightShed Partners asked about the feedback from creators regarding the new video podcast partner program and its potential impact on gross margins.

Answer

CEO Daniel Ek stated that the company has seen 'tremendous results' and a 'very big uptake' from video podcasters adopting the new partner program. CFO Christian Luiga reiterated that while there may be some quarterly variability, the company feels 'really good' about the full-year margin trajectory.

Rich Greenfield from LightShed Partners sought details on the features and strategy for the anticipated higher-priced music subscription tier.

Answer

CEO Daniel Ek confirmed the tier is designed to drive growth for the music industry and delight consumers. While avoiding specifics, he hinted that features would cater to "superfans" and could include things like better sound quality and enhanced proximity to artists, driven by the principle of adding value for both users and creators.

Rich Greenfield asked about Reddit's plans to make the search experience more visually prominent on the app homepage in 2026, and what an ideal citation experience from Google and OpenAI would look like to drive users deeper into Reddit's conversational content.

Answer

Steve Huffman, Co-founder and CEO, mentioned testing various search bar variants, including a larger one, to improve visual prominence. Regarding citations, he expressed a desire for external platforms to direct users to specific Reddit communities (e.g., r/Audiophile) for deeper engagement and human connection, acknowledging the rapid evolution of AI products.

Rich Greenfield asked Steve Huffman about making Reddit's improved search experience more visually prominent on the app's homepage. He also inquired about his ideal vision for Google and OpenAI citations, aiming to drive users deeper into Reddit's conversational content rather than just paraphrased summaries.

Answer

Steve Huffman, Co-founder and CEO, noted that Reddit is testing different search bar variants, including a larger one, to improve visibility. Regarding AI citations, he expressed a desire for integrations that guide users directly to Reddit communities for deeper human connection and conversation, acknowledging the rapid evolution of these products.

Richard Greenfield of LightShed Partners asked if Reddit would consider an exclusive data licensing deal with a single LLM provider, potentially including traffic guarantees, similar to sports media rights deals.

Answer

CEO Steve Huffman stated that it is 'too soon to say' what future data partnership structures might look like. He acknowledged the growing strategic importance of Reddit's data corpus but emphasized that the company is still in a learning phase regarding how partners use the data and will evaluate options as the landscape develops over the next couple of years.

Richard Greenfield of LightShed Partners asked if Reddit would consider an exclusive data licensing deal with a single LLM partner to maximize value and protect traffic, drawing a parallel to the NFL's Sunday Ticket strategy.

Answer

CEO Steve Huffman responded that it is too early to determine the future structure of data partnerships. He emphasized that Reddit's data is growing in importance, which creates a strong strategic position, but the company is still learning how partners use the data. He indicated a decision on future deal structures is likely a couple of years away.

Richard Greenfield asked for an assessment of where Reddit is on its journey to become 'faster, easier, and better to use,' and how this relates to becoming an online starting point versus a destination from search engines.

Answer

CEO Steve Huffman described the journey as being perpetually 'in the middle,' with constant room for improvement. He views Reddit not as an 'either/or' competitor to search but as a different product serving distinct needs for community and conversation, expecting to coexist and grow alongside search platforms.

Richard Greenfield of LightShed Partners pressed for specifics on what Google changed in its algorithm, how Reddit gains confidence against future changes, the direct impact on revenue, and what Q4 DAU growth would have been without the fluctuation.

Answer

CEO Steve Huffman declined to speculate on Google's specific changes but reiterated that such volatility is common and that Reddit's relationship with Google remains strong and collaborative. He confirmed there was no impact on revenue. While not providing an adjusted DAU number, he stated that traffic has recovered, momentum in Q1 is strong, and the core logged-in user growth remains robust.

Richard Greenfield of LightShed Partners questioned the slower growth in ARPU compared to the rapid user growth, asking if high user growth pressures ARPU and what factors will drive faster ARPU expansion in the future.

Answer

COO Jen Wong responded that Reddit does not manage the business to ARPU, viewing it as an output of revenue, users, and user mix (geography, logged-in vs. logged-out). She emphasized that the company feels good about its differentiated revenue and user growth and sees future headroom for ARPU as the value of logged-in users continues to grow.

Rich Greenfield asked about the acceleration in the subscription business during Q4, seeking details on marketing strategies or new features that contributed to this growth, including memory storage plans. He also questioned the decline in North American users to 94 million and the company's efforts to drive user growth in these key markets, given the stated focus on balancing community growth with ARPU.

Answer

CEO Evan Spiegel confirmed excitement for the subscription business, attributing recent growth and improved retention to memory storage plans, with more features planned for the direct pay segment. He noted that while monthly active users are nearing 1 billion, past community growth outpaced revenue growth, leading to declining ARPU and margin pressure. To pivot to profitability, Snap is balancing community growth with ARPU, reducing community growth marketing spend, adjusting cost to serve, and rolling out paid features, which may cause engagement headwinds but free up resources for valuable geographies like North America.

Rich Greenfield inquired about the acceleration of Snap's subscription business in Q4, asking if new marketing or features, such as memory storage plans, contributed to the growth. He also questioned the trends in North American user growth, specifically the decline to 94 million, given Snap's previous focus on these markets.

Answer

Evan Spiegel, CEO and Co-founder of Snap Inc., confirmed that memory storage plans were a significant driver of recent subscriber growth and improved retention. He noted that Snap's community growth has outpaced revenue growth over the past three years, leading to a decline in ARPU and pressure on margins. Spiegel explained that the pivot to profitability involves reducing community growth marketing spend, adjusting cost to serve, and rolling out paid features, which may cause headwinds to user engagement but free up resources for valuable geographies.

Rich Greenfield with LightShed Partners inquired about the Perplexity partnership's financial structure, specifically the cash/stock split and future monetization, asking if Snap's ad sales team would sell ad units within the Perplexity bot. He also asked CFO Derek Andersen about the leverage in cost of revenue over a two-year period, questioning if it was due to reduced content owner payouts for Spotlight and Sponsored Snaps compared to Discover.

Answer

CEO Evan Spiegel clarified that the $400 million from the Perplexity partnership would be recognized starting in early 2026, and Snap would not sell advertising against Perplexity responses, but the placement could drive Perplexity subscribers. He also noted future experiments with conversational commerce via Sponsored Snaps. CFO Derek Andersen explained that gross margin improvement to 55% was driven by a mix shift towards higher-margin Sponsored Snaps and Spotlight impressions, along with efforts to better monetize core products like Snapchat+ and memory storage plans, and optimize content programs.

Richard Greenfield asked for the performance of brand advertising in Q2 and questioned how Snap's approach to AR and Spectacles fundamentally differs from competitors, and whether the company has the capital to execute its vision independently.

Answer

CFO Derek Andersen stated that brand advertising revenue was flat year-over-year in Q2, a slight improvement from the prior quarter. CEO Evan Spiegel emphasized that Snap's key AR differentiator is its fully integrated vertical stack and a large, existing developer community. He noted that the company's positive free cash flow of nearly $400 million over the last twelve months provides the capital for its vision, but partnerships will also be a key focus for the Spectacles launch.

Richard Greenfield asked for the performance of brand advertising in Q2 and questioned how Snap's AR/Spectacles strategy differs from competitors, and whether the company has the capital to execute its vision independently.

Answer

CFO Derek Andersen clarified that brand advertising revenue was flat year-over-year in Q2. CEO Evan Spiegel highlighted Snap's 11-year investment and fully integrated AR stack as key differentiators. He affirmed that the company's free cash flow (nearly $400M TTM) funds its AR vision, but also noted that Snap is open to partnerships to bring Spectacles to market.

Richard Greenfield asked what is needed to accelerate direct response (DR) advertising growth to over 20%, requested color on the revenue contribution from China-based advertisers, and sought to clarify if core advertising (ex-Snapchat+) was growing in April.

Answer

CEO Evan Spiegel outlined that reaching 20%+ DR growth will require ongoing ad platform improvements, a strong product roadmap for app-based bidding and dynamic ads, and expanding DR bidding to new placements like Sponsored Snaps. CFO Derek Andersen declined to provide a specific breakdown for China-based advertisers but noted the business was still growing in April, though headwinds exist.

Richard Greenfield of LightShed Partners asked two high-level questions: first, about the future growth potential of the Snapchat+ subscription service in terms of subscribers, ARPU, and new features; and second, how recent AI innovations from competitors might alter the cost curve for AI and impact Snap's cost structure.

Answer

CEO Evan Spiegel expressed excitement about Snapchat+'s progress, noting strong adoption of personalization features. He indicated the future roadmap will focus on enhancing the core 'snapping' engagement loop and that there may be room for price increases. Regarding AI, Spiegel stated that recent industry innovations validate Snap's view that AI models will become commoditized and more efficient over time, which should positively impact their cost structure in the long term.

Richard Greenfield followed up on 'Simple Snapchat,' asking if the company would tolerate near-term revenue disruption to roll out a superior product and what specific triggers would lead to a broader rollout.

Answer

CEO Evan Spiegel stated that it is still early to fully understand the monetization dynamics. He emphasized that the company will take its time to work through the changes to ensure advertisers are prepared, suggesting a potential phased rollout over an extended period to bring partners along on the journey rather than causing abrupt disruption.

Rich Greenfield questioned Pinterest's decision to allow users to remove AI-generated content, asking how AI content is identified and why this approach differs from peers.

Answer

CEO Bill Ready clarified that Pinterest embraces GenAI content as a tailwind but offers users choice for content quality. He explained that recommender systems primarily manage quality, augmented by user feedback, and discussed the challenges of precisely identifying AI-generated content.

Rich Greenfield questioned Pinterest's decision to allow users to remove AI-generated content, asking how such content is identified and why this approach differs from peers who encourage more AI content.

Answer

CEO Bill Ready clarified that Pinterest embraces GenAI-created content as a tailwind, managing quality through recommender systems and offering user choice. He acknowledged the difficulty in precisely identifying all AI-generated content but emphasized that the platform's engagement metrics demonstrate effective parsing of content. Bill also suggested that over time, most content will be AI-modified, making content quality and recommendation paramount.

Richard Greenfield relayed a marketer's comment that Pinterest ROAS is a 'long game' due to delayed purchasing behavior and asked for management's reaction.

Answer

CEO Bill Ready responded that the comment is 'half right,' reflecting a historical perception. He asserted that with new tools, Pinterest now delivers immediate clicks and conversions. He attributed the perception gap to the advertiser adoption cycle, noting that the most sophisticated advertisers already see the immediate value and have shifted spend accordingly.

Richard Greenfield of LightShed Partners asked for more detail on user engagement, particularly in the U.S., given the improved WAU-to-MAU ratio, and questioned the long-term domestic Total Addressable Market (TAM) for users.

Answer

CEO Bill Ready confirmed the global weekly-to-monthly active user ratio hit a record 62% and is highest in mature markets like the U.S. He emphasized the strategy is to deepen engagement per user rather than chase new user counts in these regions. He attributed engagement growth to improved actionability and curation features resonating with Gen Z, which directly drives monetizable actions like advertiser clicks. He did not provide a specific number for the domestic TAM.

Richard Greenfield pressed for a more quantifiable definition of 'deepening engagement,' specifically asking if time spent per user in the U.S. and Canada is growing year-over-year.

Answer

CEO Bill Ready countered that 'time spent' is not the right metric for Pinterest, as two-thirds of its usage is search-related, where finding an answer quickly is a sign of success. Instead, he identified the improving weekly-to-monthly active user (WAU/MAU) ratio as the best indicator of deepening engagement. This metric shows users are returning more frequently because the platform is delivering more relevant, actionable content faster.

Rich Greenfield asked if Netflix is testing premium-tier free trials, specifically referencing a 4K upgrade promotion he received.

Answer

Co-CEO Greg Peters confirmed that Netflix tests and productizes various offers to help members understand and try features or benefits, such as a 4K upgrade prompt for users with 4K TVs. He stated the goal is to provide a range of plans, features, and price points to help members choose the right plan, leading to better satisfaction, engagement, retention, and a stronger long-term business.

Rich Greenfield asked if Netflix is testing premium-tier free trials, citing a 4K upgrade prompt he received, and whether this is a typical promotion or selective testing.

Answer

Co-CEO Greg Peters confirmed that Netflix tests and productizes a variety of offers to help members understand and try features/benefits. He explained that a 4K TV owner might receive a prompt to try watching content like 'Skyscraper Live' in 4K. The goal is to offer a range of plans, features, and price points to help members choose the right plan, leading to better satisfaction, engagement, retention, and a better long-term business.

Asked about concerns over stagnant domestic viewing share and the strategic importance of the new user interface (UI/UX), particularly for live content.

Answer

The company stated its goal is long-term share growth by continuously improving the service and reinvesting revenue. The new UI is a critical platform update designed for the modern Netflix, which includes a wider breadth of content like games and live events. The new UI is essential for improving discovery for these new content types and creating a more dynamic, responsive user experience.

Rich Greenfield of LightShed Partners asked about the importance of the new user interface (UI/UX) for live content and what specific metrics have improved since its launch.

Answer

Co-CEO Greg Peters explained the new UI is critical because the previous experience was designed for the Netflix of a decade ago. The new design is better suited for discovering varied content like games and live events, which require a different user interaction. He noted that post-launch performance is already exceeding pre-launch testing, giving them confidence that it will soon drive better performance across key metrics like content discovery and session success.

Rich Greenfield of LightShed Partners asked about the importance of the new UI/UX, particularly for live content, and what metrics have improved since its launch.

Answer

Co-CEO Greg Peters explained the new UI is critical because the previous design was not suited for discovering new content types like games and live events. He noted that performance is already better than pre-launch testing, giving them confidence the new platform will drive better engagement and meet the business's future needs.

Rich Greenfield of LightShed Partners expressed concern about stagnating domestic viewing share and asked about the importance of the new user interface (UI) and its impact on key metrics.

Answer

Co-CEO Ted Sarandos addressed viewing share by stating the long-term goal is to capture share from declining linear TV. Co-CEO Greg Peters explained the new UI is critical for discovering a broader range of content like live events and games, and that early performance data shows it is outperforming the previous version.

Rich Greenfield from LightShed Ventures highlighted the industry's struggle to define a 'super-fan' tier and asked if the concept could evolve beyond simple offerings like high-quality audio to more advanced features like interactive music or AI-driven experiences.

Answer

CEO Robert Kyncl agreed that interactivity is a key opportunity and confirmed WMG is in 'deep discussions' with its DSP partners to evolve the product offering. While he had nothing new to announce, he emphasized that all parties—DSPs, labels, and artists—are aligned on the goal of capturing the significant value presented by super-fans.

Rich Greenfield from LightShed Ventures highlighted industry confusion around the 'super-fan' tier and asked if its evolution could include more interactive or AI-driven music experiences.

Answer

CEO Robert Kyncl acknowledged the ongoing industry discussions and agreed that interactivity is a key opportunity. He confirmed WMG is in 'deep discussions' with DSP partners to define and launch such products to better monetize fandom, but had no specific announcements to make at the time.

Richard Greenfield asked about the 'winner take most' dynamic in music streaming, highlighting Spotify's dominance, and questioned what WMG could do to stimulate more competition and innovation from other DSPs like Apple and Amazon.

Answer

CEO Robert Kyncl responded that the best way to foster a competitive ecosystem is to enable innovation by providing partners with the rights and permissions to experiment with new formats, tiers, and business models. He emphasized that WMG is a willing partner in this process for all DSPs, including Spotify, Amazon, and Apple, to help them grow and differentiate their services.

Rich Greenfield inquired about Roku's strategy to diversify revenues toward subscriptions, specifically asking about bundling opportunities with Friendly and how the home screen is used to drive subscriptions versus ad-supported viewing.

Answer

Founder, Chairman & CEO Anthony Wood confirmed that driving subscriptions through recommendations and bundling is a key focus with increased resource allocation. He explained that a complex machine learning algorithm optimizes the home screen yield daily, balancing viewer satisfaction with revenue from subscriptions, ads, and paid promotions to decide what content to surface for each user.

Richard Greenfield asked about the lifetime value and retention impact for users who subscribe to services via Roku Pay, whether partners experience lower churn through Roku, and if the company plans to create its own subscription bundles.

Answer

CEO Anthony Wood emphasized the company's focus on lifetime value but did not comment on specific churn rates. He stated that getting users onto the Roku Pay billing system is generally positive for retention. He noted that premium subscriptions are a big opportunity for growth, as Roku is currently behind some competitors in this specific area.

Rich Greenfield from LightShed Partners asked about the strategic differences for STARZ as a newly standalone public company versus its prior structures, and whether its content strategy would change.

Answer

President & CEO Jeffrey Hirsch explained that STARZ is now a fundamentally different, 70% digital business. As a standalone entity, it can unwind cost pressures from its time with Lionsgate and focus on owning its IP to drive margins from 15% to a targeted 20%. Hirsch confirmed the content strategy will remain focused on its two core demographics: women and underrepresented audiences.

Rich Greenfield from LightShed Partners inquired about the strategic differences for Starz as a newly standalone public company versus its time as a division of Lionsgate, and whether this would lead to a diversification of its content.

Answer

President & CEO Jeffrey Hirsch explained that as a standalone entity, Starz can now focus on its own business, unwind cost pressures from the previous structure, and rebuild its own IP library to improve margins to 20%. He clarified that the content strategy will remain focused on its two core demographics—women and underrepresented audiences—to maintain its position as a valuable complementary service and bundling partner.

Richard Greenfield of LightShed Partners questioned the structure of Paramount's relationship with creator Taylor Sheridan and his 101 Studios. He asked why Paramount has not acquired 101 Studios to achieve full vertical integration and whether the current partnership is the optimal model for value creation.

Answer

Co-CEO Chris McCarthy affirmed the value of the relationships, clarifying that Paramount has an exclusive deal with the 'gifted creative' Taylor Sheridan through 2028 and owns the resulting IP. He described 101 Studios as a 'preferred partner' in which Paramount has invested, stating the current incentive structure works well. He added that the model built around Sheridan is now a playbook for attracting other top creatives.

Richard Greenfield questioned why Paramount has not acquired 101 Studios to fully vertically integrate with creator Taylor Sheridan, asking if the current partnership structure is the optimal model for maximizing value.

Answer

Co-CEO Chris McCarthy affirmed the value of the relationship, highlighting Paramount's exclusive deal with Taylor Sheridan through 2028 and its ownership of the resulting IP. He described 101 Studios as a preferred partner in which Paramount has invested, stating the current incentive-based relationship is working well and serves as a successful playbook for attracting other top creatives.

Richard Greenfield asked about the financial impact of dropping Nielsen, specifically on Q4 advertising revenue, and requested the current employee headcount for the TV Media division following recent cost cuts.

Answer

Co-CEO George Cheeks asserted that the Nielsen dispute is about value, not affordability, and that there has been no adverse impact on ad revenue to date, with no material impact expected in Q4. He stated the TV Media division has approximately 6,000+ domestic and 3,000+ international employees.

Richard Greenfield asked for clarification on whether TKO would be involved in any potential bid by Ari Emanuel for other Endeavor assets and sought confirmation that TKO would remain a sports-only entity.

Answer

President and COO Mark Shapiro stated unequivocally that 'TKO will not bid on any other Endeavor assets, period,' but confirmed Ari Emanuel could bid in a personal capacity. He strongly reaffirmed TKO's identity as a 'sports pure play, end of story,' noting that recent acquisitions directly align with this core strategy.