Peter Chernin Wants to Introduce You to Another Netflix Competitor … Someday

Three Fools take to the Internet to talk about AT&T’s $500 million deal with The Chernin Group, and what it might mean for Netflix.

Apr 27, 2014 at 3:30PM

The Chernin Group and AT&T (NYSE:T) have agreed to invest $500 million in "over-the-top" video services. What's that mean? And should Netflix (NASDAQ:NFLX) investors worry? Host Ellen Bowman puts these questions to analysts Nathan Alderman and Tim Beyers in this week's episode of 1-Up on Wall Street, The Motley Fool's web show in which we talk about the big-money names behind your favorite movies, toys, video games, comics, and more.

Nathan says there's too little information available to know whether to buy AT&T stock or sell Netflix shares. All we really know is Chernin has the cash to invest having bid a half-billion for Hulu last year before its owners agreed to put another $750 million into reshaping the business. The Chernin Group has also invested in the anime channel Crunchyroll.

Tim says the only reason to pay attention to this deal is Chernin's track record. In his earlier roles at Twenty-First Century Fox, he oversaw two of the studio's biggest grossers: Avatar and Titanic. At The Chernin Group, he's directed investments in Tumblr and is backing a new Planet of the Apes franchise. He's also on the boards of Pandora and Twitter. If anyone can help AT&T develop a legitimate streaming alternative, Chernin is probably the guy, Tim says.

Now it's your turn to weigh in using the comments box below. Do you expect AT&T and The Chernin Group to create a formidable Netflix competitor? Why or why not? Click the video to watch as Ellen puts Nathan and Tim on the spot, and then be sure to follow us on Twitter for more segments and regular geek news updates!

If you take only lesson from this article, let it be this ...
You know why Peter Chernin can afford to commit a half-billion to a big yet still undefined project? He's spent a lifetime making smart investments. You can too, and we're here to help. Our analysts have identified three stocks that they believe could double in price several times over. Everything you need to know about these FREE picks is available to you in a new free report. Download it instantly by clicking here now.

Ellen Bowman owned shares of Netflix at the time of publication. Nathan Alderman didn't own shares in any of the companies mentioned. Tim Beyers owned shares of Netflix. The Motley Fool recommends Netflix and owns shares of Netflix and Pandora Media. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information