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.

Tim Beyers
Tim Beyers
Apr 27, 2014 at 3:30PM
Consumer Goods

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!