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Recession Resistant Investing in Media & Entertainment
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Love the comment on Teddy Swartzman’s Black Bear company. Daddy runs Black Stone, for Heaven’s sake! Will Black Bear still be doing well if “little Teddy” is no longer at the helm? Or when Daddy retires? Not exactly a great investment thesis.
Is anyone doing it right without an $800 billion Nepo-Fund standing behind them? I want to talk to that company.
it’s also worth noting that Stephen Schwarzman’s son Teddy runs Black Bear, which he has built into one of the US’s top independent film and tv production and distribution companies.
It seems that production without ownership of the distribution side is just wishful thinking. Smart on Teddy’s side. But then, could he really have failed with so much money and so many connections available to him?
Imagine being the CEO of a cinema chain, or Netflix for that matter, and telling little Teddy Schwarzman’s father that you turned down a deal with his son. LOL
Recession is the biggest issue in our office. SVB was terrifying, and would have been painful without taxpayers covering. Credit Suisse is even more worrying. tax payers cannot cover the top 2 on this list of asset managers, much less the top 5, or the 100. This article puts that risk in context. Don’t know about bread and circus as an investment strategy, but if the big boys are buying up media companies, then I want to be in media companies.
I imagine Black Stone receives very well crafted proposals from well-advised media companies. For those of us with slightly less than a trillion dollars the pitches are bordering on amateur hour. If this website can do anything about making the pitches more professional, then so much more money would flow into media. There are far more investors like me, than investors like Black Stone.
if you’re serious about content investment I would love to have a chat. Let me know :)
Dear Gavin. Do you have some swamp land in Florida as well? Seems every poor-quality pitch we receive is for a film or tv show that can’t seem to find any money from those who actually know the business. They don’t even want to put their own money in it.
On a serious note, is independent content the best play in this industry when all of the major distribution companies are clearly in decline? Content producers seem to make the least amount of money in the value chain between content creation and content delivery. The latter is where nearly all industry revenues are received. I’m eager to find opportunity in that broken dynamic.
I hear what you are saying, and its an issue we’ve been looking at. If you’re intrigued take a look at stelarator.com
interesting article and makes great point about the recession-proof value of content / content companies. SVB went bust because of they neglected to hedge their interest rate bond investments, though – a pretty basic management failure. Only after this became public knowledge was there a run on deposits.