Google: Very Expensive Ticket
- Google is the apparent winner of the NFL Sunday Ticket at a cost of $2+ billion.
- The financials of the NFL deal don't add up to a winning deal.
- The stock is cheap at ~13x EPS targets, but over paying for the Sunday Ticket is a bad move for shareholders.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
When DirecTV, still 70% owned by AT&T (T), didn't want to pay another $1.5 billion for the NFL Sunday Ticket, investors have to wonder why big tech wanted to pay even more. Google (NASDAQ:GOOG, NASDAQ:GOOGL) battled with Apple (AAPL) for the right to overpay for limited out-of-market NFL games.
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