The Best One Yet - 🦄 “Big Little Unicorns” — Reese’s $900M schmoovie. DraftKings’ sports bar. Square’s $29B FOMO.

Episode Date: August 3, 2021

DraftKings wants to launch its first ever sports bar. Reese Witherspoon sold her schmoovie studio for $900M because “The 3 C’s of Content” are killing it. And Square just made its biggest acquisition ever after it got FOMO for a Gen Z Credit Card.$DKNG $SQ $BX $AMC $AFRM $PYPLGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. It is Tuesday, T-Boy Tuesday, August. Third, weird to say August. You know, I just realized we're in a niche group, Nick. We are. Freshman year college roommates who became podcast co-hosts.

It's a small niche. Jack, there's no Venn diagram for this, man. We're the only Venn in that diagram. All right, Nick, what happened to stocks yesterday? The Dow down 97 points. What happened to the metal count yesterday? Athletes from Russia have 50. China has 62.

United States? 64, baby. You know what? Japan is punching above their weight. They have the third most gold medals. But today's pod is actually the best one yet. Jack, what's our first story? Draft Kings is planning their own sports bars so that you can bet while you hoove chicken wings. Draft Kings is hedging its bets, literally. Our second story, congratulations to Reese Witherspoon, who just sold her movie studio for a reported 900 mil. The Shmovie streamers, they want the streaming bucks of Reese's famous book club.

Third and final story, Square, just made their biggest acquisition ever. Jack, they're adding the Gen Z credit card to the Square wallet. Not too shabby. But Snackers, quick T-Boy Tuesday trivia before we hit those three wonderful stories. This actually comes from Conrad's son from lovely Los Angeles. We promoted it to the intro from a snack fact. We noticed there's a lot of international athletes competing in Tokyo. Yeah, if so facto, a lot of flags also in Tokyo these days.

Sometimes it feels like it's just fabric flags out there on the playing field, not people. I don't know, Jack, is that a human being doing the pole vault? Or is that like a three-foot cloth? I don't know. Now, team USA fans, of which I am one, are rooting for whoever is wearing red, white, and blue out there. But one problem, Snackers. Red, white, and blue is actually the most popular flag combination of colors on planet Earth. By far.

You probably know Snackers that the United Kingdom, Australia, Russia, and France all have red, white, and blue flags. Yeah, the blue blanc-é-é-rooge. Also, Slovenia, Samuania. Also, Slovenia, Samoa, Cambodia, red, white, blue. Jack, how about Panama, Luxembourg, Laos, all red, white, and blue? This is crazy. Even Cuba and North Korea have red, white, and blue flags. I mean, no to democracy, but yes, to red, white, and blue flags.

We didn't even mention the Dutch. The Netherlands is red, white, and blue. It's France, but turn 90 degrees. They say orange sometimes, you round up to red. But Snackers, every single country in the world has either red or one. white or blue in their flag. Except one country. What is the one country on earth whose flag does not have red or white or blue in it?

The answer is at the end of this podcast? Or as we like to call it, the closing ceremony. Let's in our three stories. You're tuned in the snacks daily. We spoke to the lawyers. It's snacks about the hearing food. It's air candy. They don't reflect the views of the rob of her family.

It's all informational just so you know. We're not recommending any securities. It's not a research report or investment advice. Not an offer or sale about security. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, Draft Kings is planning its first ever sports bar for sports betting.

Draft Kings is making a bet that Netflix, Zoom, and Peloton haven't. More than that of the takeaway. In the meantime, Jack, pull that wad of cash out of your fanny pack. It's a big week for casino stocks. That's what we're trying to say. All right. You got MGM, Caesar's Palace, Penn National Gaming and Draft Kings, all reporting earnings this week.

Big week for the casino stocks. Draft Kings, you know, founded 2012 in Boston, and now it's legal in 14 states. This morphed from a daily fantasy sports app into a $20 billion pan betting everything app. It's basically worth one lift. So it's gone some places. The stock quadrupled last year, but it's down so far this year. Until yesterday, when we noticed it jumped 3% on this fascinating news. Draft Kings announced a sports betting sports bar in both Nashville, Tennessee and Detroit, Michigan.

Yeah, I guess Nashville was really desperate to get that Bachelor, Bachelorette party crowd, Jack. You know, you got to pull out all the stops, right? Well, Draft Kings partnered with what we're calling an architect slash lounge designer to create what their calling a strategic upscale entertainment destination. The kind of place with like a lot of couches you're going to sink into. Hey, remember when someone stole the couch from our apartment? The sofa? Yeah.

We never found out what happened. We should use this pod platform to like track down the perpetrator at some point. Well, they only took one section of the sectional self. That was strange. You can't round up on that check. That's why it's so vexing. Now, the key elements of this new sports betting bar is that it's like a casino. You got food and drinks and entertainment.

Right. But no crap. tables and no slot machines. The only gambling that can happen there is the gambling that happens on your phone's app. So in many ways, it'll look and feel just like a casino, except all the casino-y stuff is happening in your phone. Now, this still has to be approved by Tennessee and Michigan regulators. Yeah, it does. But it would be a sports bar owned and run by a sports betting company with a betting theme. And that means there are going to be a lot of TVs, like more screens than a NASA control center. So you can put money on the Giants Packers game and free refills.

I'm going to need a whole lot more Dr. Pepper if you're going to keep me here. Keep them coming. See, order a $13 burger with truffle fries. You got 43 different screens to watch 43 games with your 12 buddies and you're all sitting on a sweet spot on a big sofa. All right. Gambling. Yes. Deccant food.

Okay. Fancy sofas. I'm following you. Lots of people. It's a virtual Vegas. So what's the takeaway for our buddies over draft Kings? Draft Kings is literally hedging its pets. Literally.

This is like a literal situation. Snackers, remember. Remember the 2020 stay-at-home stocks? They were said in records last year, just like Draft Kings, it was one of them. We call them the Sultons of Stay-At-Hone. Peloton, Netflix, Zoom, Draft Kings, among others. But out of all those companies, Draft King's app knows the world is reopening, so it just bet on the oldest in-person concept like in the world.

Bars. This would be like Peloton planning to build out a chain of physical spin studios. Or Jack, this would be like Netflix buying AMC so it could finally own some physical movie theaters. Draft Kings thinks it must appeal physically to customers to stay competitive once people are fully out and social again. So the sports betting app, Draft Kings, is literally hedging its bets. For our second story. Oh, do you know the answer to that trivia question about the flags? Do you want to guess?

I think it might be Brazil. It's not Brazil. They got that little blue globe. The soccer players just wear green and yellow. That's a great point. Second story snackers, Reese Withers, female-focused, Shmovie studio. just got bought for $900 million. Huge media deal that comes with the three Cs.

The three Cs. But before we jump into them, big little lies, you thought it was a usually successful HBO TV series. Great show, greater soundtrack. It's actually, though, the brainchild of Hello Sunshine, Reese Witherspoon's movie and TV show production company. Merrill Streep, Season 2, Jack, I still get chills. It's a very different show in season 2.

Yeah, it's darker. It's still really good. Well, the reason Rees started this studio, Hello Sunshine, is kind of like the plot of legally blonde, ironically. Yes, women weren't getting enough respect in the scripts that Hollywood was producing, particularly the dramas. Yeah, the female characters in these movies were like one-dimensional compared to the male characters, so it had to change.

So in 2016, Reese had enough success to stop reading scripts and start making her own. Boom, she whipped up the morning show. Apple TV Plus, their first hit. Then you got little fires everywhere. She did that. Great novel, greater TV show on Hulu. So Snackers, here's the news. She just sold her studio, Hello Sunshine, to a new media venture for an undisclosed but probably really big sum of money. Well, BFWTMs told the Wall Street Journal that huge amount is $900 million. Oh, close to a unicorn. Like a big little unicorn. Now, surprisingly, Reese's company did not get snatched up by Hollywood or one of the combatants in the street. streaming wars. Yeah, Snackers, this is what Jack and I find fascinating about the story,

because there were rumors Apple would buy Reese's company for Apple TV Plus for a bunch of new content. Instead, it was sold basically to an arms dealer. Yeah, it was sold for $900 million, allegedly, to two former Disney guys and some Blackstone sharks who were buying out the production house. So with this deal, Reese Witherspoon enjoys a nice big payout, and she could finally buy that gorgeous house on the cliff from Big Little Lies. Blamer. That's the mood. And the private equity giant Blackstone can now start licensing out her incredible shows to the highest bidders. Jack, are we going to see Netflix and HBO Max and Amazon Prime and Peacock like in a bidding war for Reese's next movie? Don't forget Paramount Plus and whoever else.

They're all going to want Reese's shows because they bring the eyeballs. Except for Quibi. So Jack, what's the takeaway for our buddies over at Reese Witherspoon's Hello Sunshine? Media acquisitions want the three Cs, content, commerce, and community. Snackers, as Variety just put it, the specific content of Hello Sunshine is clear. Complex contemporary American dramas. Now, the community part of Hello Sunshine, it's a little more subtle, but it's also important. Those complex contemporary American dramas are led by memorable female leads and tell women's stories. Now, the third see here, the commerce part, that is the secret sauce that Reese Witherspoon brings.

We haven't even mentioned Reese's epic book club. What are we doing? Which is a direct-to-consumer relationship with her enormous audience, and it wraps together those three Cs. Yes, it does content. Commerce, community, the three Cs of content. They are the same reasons why Spotify just acquired the Call Her Daddy podcast. And the Three Cs is why LeBron James' production company is rumored to be worth $750 million with a bunch of suitors. LeBron James has a media startup.

The three Cs is what Reese has, and it's why she just became. nearly a unicorn. For our third and final story, do you want a hint, by the way? Should we do a hint? What, for the flag? Yeah, the answer. The answer, Jack. You ready?

It's so good. Honestly, actually, it could be a Disney movie. For our third story. The answer could be a Disney movie. Square just made its biggest acquisition ever. Does Beauty and the Beast have a flag? For $29 billion, Jack Dorsey of Square is getting a buy-now, pay-later company. Now, $29 billion is a lot of money now.

It's a lot. And if they had to pay now, you're good or you could pay later. After Pay Snackers is a buy now pay later icon in Australia where it's publicly traded. Now, we've talked about buy now pay letter before, the phenomenon. We basically, Jack and I call it the Gen Z credit card. That's what it is. It's the Zazer card. It's the millennial ZXXXX, Jack.

Well done. It's everywhere you want a Zee. Buy now pay later. You could pay 600 now for the sneakers or spread it across form. payments. That's how it works. Yeah, it's easier, it's cheaper. It's faster than applying for a Discover card. It's a great feature. Now, the store pays by now, pay later, a transaction fee. Just like a credit card will charge. And you might pay by now, pay later through interest or a late fee. Just like a credit card. So it really is like a Gen Z credit card. But it's like one

click instead of a phone call. In the meantime, Jack and I jumped in snacks out. We noticed that buy now pay later is like the hottest fintech sector these days. There's corporate musical chairs going on to snatch up the Buy Now Pay Later firms out there. You got a Buy Now Pay Later fomo thing. Jack, PayPal launched its own Buy Now Pay Later just last year. Apple and Goldman Sachs are working on their own for the Apple card. Clarna, the Buy Now Pay Later app, is Europe's most valuable startup. And a firm recently IPOed here in the U.S. Well, what do you know? Square stock jumped 10% yesterday. They did report earnings, but they also announced this deal. Square paid 30% more than Afterpay stock was trading last week because they want Gen Z's favorite payment option. So, Jack, what's the takeaway for our buddies

over at Square? Most companies want the buy now part. Square wants the pay later too. Snackers, Klarna, Affirm, PayPal, they are all baked into so many e-commerce sites because they get you to buy. They get you to buy now. Credit boosts sales. It always has. Well, one square sticks this new buy-now pay later tech into its software. Merchants are going to love that buy-now feature too. that you actually click to confirm your order. But the beauty in this deal is the pay later part. Yes. That's where Squares cash app comes in.

Snackers, Squares buy now pay later will nudge you to do the pay later using Cash App, which Square owns. So then Cash app isn't just paying back Jalissa for brunch. No, it's not. Cash app could be an account you depend on for quarterly payments on that new TV you bought. So the pay later part is the cash app part and that is how this deal is different. They want the pay later too. Jack, can you whip up the takeaways for us over there?

Buffalo Wild Wings is not happy about Draft King sports bars. It's hedging its bet literally on its betting app. Reese Witherspoon turned her movie-making talents into $900 million in just five years. She's got a schmovie empire because it includes the three Cs. Square just joined the buy-now pay later frenzy by acquiring after pay. Yeah, everyone does the buy now now, but Square wants to pay later now. I just messed with me. Yeah, Dan, we should take a pause.

Now, time for our snack fact of the day, which is actually the answer to our trivia question from the intro, this one from Conrad's son from lovely Los Angeles. Jack, the question? The one flag that has no red, no white, or no blue. Right. On planet Earth. I think it's going to be like the Vatican City or something. It's not what you think. The answer is Jamaica.

And the hint was cool running's the Disney movie about Jamaica. Oh, the Disney movie. Yeah, that was it. Can you tell me what the flag looks like? I can't picture. Oh, yeah. The Jamaica flag has got green. It's got yellow and black.

Oh, of course. There you go. There you go. I'm picturing Usain Bolt right now. Snackers, you'll look fantastic today. We can't wait to do this with you tomorrow. See you then. And before we go, happy birthday to Snacker Anna Doherty from Cape Elizabeth Maine.

And Brian Kemp in Williamsburg, Virginia. And Tepua over in Brooklyn. And Dayman Todd in Clarksville, Tennessee. And Tafoon Meep just got promoting. to a finance supervisor position in Illinois. Congratulations to Angelica and Paul, who just got engaged in the Big Apple. I'm going to assume it was on a bridge in Central Park.

Oh, and just a quick like, What's up to Carly from Hanover, New Hampshire? What's up? This is Jack. I own stock of Amazon and Netflix. Nick and I both own stock of Pelton and Spotify, and Nick own stock of Apple and Square. The Robin Hood Snacks podcast you just heard

reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security.

The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA, SIPC. Does Beauty and the Beast have a flag?