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Paramount Global is sinking as its CEO warns of weaker fourth-quarter results

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Paramount Global (paraThe stock fell 8% in afternoon trading Tuesday after Chief Executive Officer Bob Bakish warned that a weak advertising market would likely weigh on fourth-quarter earnings.

“We now expect the fourth quarter to come in a little bit lower than the third quarter,” Bakish said at the UBS conference in New York City, amending previous guidance that the fourth quarter would be in line with the results for the third quarter.

“As we were going to this point, we looked for some improvement in certain sectors. We didn’t see that,” Bakish said. The advertising slowdown has hurt the free, ad-supported video streaming service, Pluto TV, the executive added, while foreign exchange challenges have also pressured the company’s earnings.

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Paramount reported Twice last month’s third-quarter earnings Who missed both the upper and lower lines. Advertising revenue fell 2% in the quarter, while earnings suffered as a result of increased investments in content, marketing and international expansion.

However, Baksh struck an optimistic tone when it came to the future: “Despite the challenge, advertising is cyclical. I’ve managed through a number of such cycles recently up until the beginning of the decade. And this too is a cycle. And this too will transform.”

Despite macroeconomic concerns, Bakish doubled down on Paramount+’s future, revealing the company’s plans to spend $6 billion on streaming content in 2024 after spending $2 billion in 2021.

“We love the performance of our content engine and are very comfortable with our investment plan. We see it paying off in the performance of our platforms,” ​​Baksh said.

“It really all begins and, I would say, ends with content,” Bakish said during a conference call Tuesday, noting that Paramount will announce more franchise-focused shows in 2023.

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“Build a real business”

Top Gun: Maverick (Courtesy: Paramount Pictures)

Paramount+ boasts 46 million paid users after adding 4.6 million net in the third quarter. About 1.9 million subscribers were removed after the launch of SkyShowtime, which replaced the Nordic streaming service.

Overall, the company has attracted nearly 67 million subscribers across its direct-to-consumer services with Pluto TV reporting 72 million monthly active users.

Bakish, who previously told Yahoo Finance that streaming prices will go upconfirming future price hikes during the company’s third-quarter earnings call, though no timeline was provided.

However, Wall Street is still stuck by long-term concerns about streaming losses, which are expected to reach $1.8 billion in 2022 and rise further in 2023. Paramount shares are down nearly 44% since the start of the year.

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“We’ve always built this with the goal of building a real business and with profitability in mind – we look forward to continuing to make progress on that in 2023,” Bakish said Tuesday. Bakish revealed that broadcast losses are still on track to peak by next year, noting that subscriber inflation remains low amid high growth prospects.

“We knew from day one that we needed to turn this into a business, and we focused on creating a company with profit margins akin to TV media. We believe our multi-platform portfolio of assets is a real advantage here,” Bakish said. .

“We’ve only run Paramount+ for 18 months, unlike some people who’ve run it for over a decade. It takes some time, but we’re very focused on streaming profitability and building a financially compelling business here. We’re tracking in that direction.”

Alexandra is the chief media and entertainment correspondent for Yahoo Finance. Follow her on Twitter aliecanal8193 and email it to alexandra.canal@yahoofinance.com

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.