April 2016

DreamWorks Animation Is Bought by Comcast in $3.8 Billion Deal

Hollywood’s smallest publicly traded entertainment company, DreamWorks Animation, threw in the towel after a turbulent 12 years, agreeing to sell itself to Comcast’s sprawling NBCUniversal in a deal valued at a hefty $3.8 billion. The purchase means greater competition for the Walt Disney Company, the world’s largest entertainment company. NBCUniversal plans to use DreamWorks Animation properties, which include “Kung Fu Panda,” “How to Train Your Dragon” and “Shrek,” to bolster its fast-growing theme parks and move deeper into toys and children’s television. The deal will pay DreamWorks Animation shareholders $41 a share in cash, more than 50 percent over its closing price on April 26, when news of a possible deal emerged.

Jeffrey Katzenberg, the founding chief executive of the studio, who is expected to reap nearly $400 million from the deal, will become a consultant to NBCUniversal and serve as chairman of a new entity called DreamWorks New Media. Stephen B. Burke, NBCUniversal’s chief executive and senior vice president of Comcast, in a statement cited DreamWorks Animation’s “dynamic film brand and deep library of intellectual property” as reasons for the deal. “DreamWorks will help us grow our film, television, theme parks and consumer products businesses for years to come.” Burke said Chris Meledandri, the chief executive of Illumination, Universal’s animation division, would oversee the DreamWorks Animation business. Katzenberg’s new entity will be made up of assets like AwesomenessTV, a digital network and studio aimed primarily at teenage girls.

NCTA Seeks Action by President Obama on 5.9 GHz Spectrum

The National Cable & Telecommunications Association is pushing President Barack Obama to make opening up the 5.9 GHz band for more Wi-Fi a priority in his remaining days in office, saying the need is urgent and the spectrum deficit dangerous. It signed on to a joint letter to the White House from a group of tech and Internet companies, schools and libraries.

While NCTA is sparring with Google in the set-top sphere, and has butted heads with Free Press over consolidation, they are all together in their support of opening up the band. Cable operators have been pushing for more 5 GHz spectrum to fuel their Wi-Fi hotspots, the industry's primary mobile broadband play. "While Americans’ dependence on unlicensed technologies for Internet access continues to skyrocket," they told the President, "the spectrum resources that power our devices are perilously insufficient. As a result, our Wi-Fi bands are becoming dangerously congested. The problem has become so severe that Cisco and Apple have recently warned customers that the core 2.4 GHz unlicensed band has become so overtaxed that it 'is not considered suitable for use for any business and/or mission critical enterprise applications.' We must act now to find more unlicensed spectrum." The President has not been shy about wanting to free up more spectrum for broadband—it has been a tech centerpiece of his Administration—and the Federal Communications Commission has been looking to do so in the 5.9 GHz band, but there remain issues of possible interference with connected car technology that it is still working through.

Entertainment Studios Pushes Charter/TWC Diversity Condition

Byron Allen's Entertainment Studios Networks continues to push for Charter/Time Warner Cable shelf space for 100% African American-owned media (AAOM) networks even as a deal vote looms. In an ex parte filing to the Federal Communications Commission April 27, David Goodfriend, who is representing Allen and the National Association of African American-Owned Media (NAAAOM), said he had met with David Grossman, chief of staff to Commissioner Mignon Clyburn, on April 26 to talk about the apparent lack of specific diversity-related conditions in FCC Chairman Tom Wheeler's proposal to approve the deal with conditions.

In the future, Big Data will make actual voting obsolete

[Commentary] Because I conduct research on how the Internet affects elections, journalists have lately been asking me about the primaries. Here are the two most common questions I’ve been getting: Do Google’s search rankings affect how people vote? How well does Google Trends predict the winner of each primary?

My answer to the first question is: Probably, but no one knows for sure. From research I have been conducting in recent years with Ronald E. Robertson, my associate at the American Institute for Behavioral Research and Technology, on the Search Engine Manipulation Effect (SEME, pronounced “seem”), we know that when higher search results make one candidate look better than another, an enormous number of votes will be driven toward the higher-ranked candidate—up to 80% of undecided voters in some demographic groups. This is partly because we have all learned to trust high-ranked search results, but it is mainly because we are lazy; search engine users generally click on just the top one or two items. Because no one actually tracks search rankings, however—they are ephemeral and personalized, after all, which makes them virtually impossible to track—and because no whistleblowers have yet come forward from any of the search engine companies, we cannot know for sure whether search rankings are consistently favoring one candidate or another. This means we also cannot know for sure how search rankings are affecting elections. We know the power they have to do so, but that’s it.

[Robert Epstein is a Senior research psychologist at the American Institute for Behavioral Research and Technology]