Mortal Enemies NBC, News Corp. Form Stunning Alliance as Old Media's War Against Upstart Google Escalates
An unexpected deal between industry titans, News Corp (NWS) and NBC Universal (GE), sent the media world tumbling, today. The long-time adversaries agreed to set aside differences and jointly launch a new website which will compete directly with YouTube, owned by Google (GOOG). The move comes a week after Viacom’s (VIA) $1 billion copyright infringement lawsuit. Can Google play the David to these corporate Goliaths and come out a winner?
Dylan Ratigan calls the deal a stunning alliance of mortal enemies – all to defeat little old Google.
Eric Bolling says content is king, but doesn’t think investors should try to guess who will win this battle, right now. If NBC and News Corp. get their act together Eric thinks maybe they can overtake YouTube, but right now the jury is out.
Dylan asks how dangerous must Google be to create this stunning alliance.
Jeff Macke says Google must be scary to NBC and Murdoch – but this alliance isn’t the least bit scary to them! He adds this is a reason to stay away from Google stock, if they can get arch-enemies like NBC and Fox to team-up, they’re a magnet for litigation.
Guy Adami comments that sometimes mortal enemies come together to beat a common foe –then after they beat the foe they turn on each other. The winner here, he says, is Yahoo! (YHOO), because they’re not in the line of fire. Guy thinks YHOO is a $36 stock.
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