The Best One Yet - 💊 “Love me tender” — Twitter’s poison pill for Elon. SiriusXM’s sticky seat. The GoldenStateWarriors+.

Episode Date: April 19, 2022

Twitter was diagnosed with a case of Elon-itis… and the only prescription is a Poison Pill. A shocker of a stat we noticed: SiriusXM is worth more than Spotify? It’s all about the stickiness of the car. And the Golden State Warriors aren’t just kicking off their NBA Playoff run — they’re launching a media network (because they’ve got the characters).$TWTR $TSLA $SIRI $SPOTGot 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/viewformID: 2156568Learn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

Here we go. Oh, do you see the new Batman movies on HBO Max? No way. Starting today. Yeah. Like the Batman one? The latest one. Yeah.

With all the, uh, with all the mascara. Yeah. The Batman sponsored by Revlon. I thought you said Gothi like Gotham. Are you the Joker? No, I'm Christian Dio. All right. Here we go.

Three, two. This is Nick. This is Jack. And this is Snacks Daily. It is Tuesday, T-Boy, Tuesday, April 19th. A lot of people inquired on Twitter yesterday if I really want a guitar here. Yeah, are you going to up this up, Dan Halen with like a yellow, blue, yellow, yellow, blue? I said yes.

Nobody offered me a guitar. Yeah, so I'm still sitting here waiting. I'm just going to throw this out here. I'll take a dance dance revolution while we're at. Let's just say my guitar is gently weeping still. Perfectly timed because today's pot is the best one. yet, Jack, we've ever done. TBIOY.

For our first story, Twitter, has itself a bad case of Elonitis. Elonitis, Jack, I got one prescription for Elonitis. A poison pill. But there's an antidote to that poison pill. Love me tender. Ooh, second story. What do we got? Did you know that serious XM radio is worth the same as Spotify?

Yeah, we were shocked, too, because car owners are the stickiest of sticky customers. And our third and final story is the Golden State Warriors. They just tipped off their NBA playoff run with a new. player. But it's not a new basketball player. It's a brand new media network. But Snackers, before we hit that wonderful mix. Fantastic mix for a Tuesday, Jack. Yesterday wasn't a national holiday, but it was Patriots Day. Patriots Day, not the team that spies on every other team's practices. No, the Patriots who got America independence from the Brits. Yeah, Snackers, think more, Ben Franklin, less Bill Belichick. Yes, Patriots Day is Boston's holiday. It is. You also get the Boston Marathon every year on Patriots.

Yeah, you did. You get the Red Sox playing baseball in the morning on Patriots Day, not too shabby. And you got Dahlin working overtime on Patriots Day. And that's up in Boston. Meanwhile, down in D.C., they celebrated Emancipation Day last weekend. They celebrated the day that Lincoln signed the Emancipation Proclamation. And that's why Tax Day was delayed because of Emancipation Day in D.C. But we have to clarify here, neither Patriots Day nor Emancipation Day are national holidays. No, Snagas, neither of them is a national holiday. So Jack and I jumped in snack style to some local holidays.

This country's got some lovely local holidays. Jack, New Orleans, they got Marty Graw, Detroit, they got Champions Day. Pucksittani's got Groundhog Day. Utah has Pioneer Day. Oh, and over in Alaska, they got Alaska Day, Jack. That's the day the Russians handed over Alaska to the United States for like chumpchase. Yeah, it's also the only holiday recognized by ExxonMobil. Now, Nebraska, over in the Nebraska, they love trees.

So much. So much. They closed their schools for Arbor Day, which happens to be next Friday. Because like two-thirds of the state is corn stocks. Arizona, it's the only state that requires recognition of Mother's Day. It's a state holiday. Yeah. In Phoenix, you are legally obligated to buy your mom brunch.

And across the great Midwest of the United States, they all recognize the holiday of sweetness. This is a real holiday. It's like an extra Valentine's Day, but from Minnesota to Ohio. Snackers, we all need to celebrate. some wins right now. Even if it's a local win. Let's hit our three nearby celebrated stories. Snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robin Hood family. It's all informational just so. You know, we're not recommending any securities. Nope. It's not a research report or investment advice. Not an offer or sale of a security.

Right. Snacks is digestible. Business news for you. Robahood Financial, LLC, member For our first story, Twitter, it has got a case of Elonitis. And there's just one cure. A poison pill. But Elon is already whipping up the one and only antidote to a poison pill. More cowbell. Snackers, welcome to the Elon Hour. Episode 26.

It's a daily show. This is a made-for-TV financial drama, but with memes. Basically, every day feels like a Bravo show. It's below deck, but without the yachts. Instead, it's got self-driving cars. Yeah, Elon has dictated the first story of this pod once again because yesterday we told you that Elon was trying to acquire Twitter for $54.20 a share because it's the mature thing to do.

Exactly. And so we're looking at the situation here. And Jack and are like, look, we don't have medical degrees, but it's like Twitter has a case of Elonitis. Elon has penetrated its body. It's in there. And it's trying to take over everything. Now, this week Snackers, the board.

of Twitter said, you know what, we don't want this Elonitis. We want to cure ourselves of this Elonitis. So Twitter's board popped the old poison pill. The old poison pill. Snaggers, Board of Directors orders on this. You got to take one poison pill. You got to take it once. And then you got to rest and drink a lot of water. The reason Twitter's board is freaking out is because in theory, one rich person like Elon Musk can buy all the stock slowly but surely every single bit of stock of Twitter and become the shareholder, the only owner. When faced with this kind of a situation, the poison pill has become the go-to corporate prescription if you want to not get acquired.

Yes. In 2012, Netflix popped a poison pill. They did. That was wild. And that was to stop one investor, Carl Icon at the time, from acquiring all of Netflix. And it's a good thing that didn't happen. Totally. Oh, Jack, how about 2018?

Papa John's, they popped themselves a poison pill too, right before bedtime. Ironically, they popped the poison pill to stop the Papa John's shit. matter himself from buying all the stock of Papa John. And that leads us to this week because Twitter's board just announced on Friday, they are going to pop a poison pill too. Twitter's board popped the poison pill. Now, they may want to read like the fine print and side effects on this because the point of a poison pill is to make yourself so poisonous that nobody wants to eat.

That's right. This is a medicine that is poison. Because the purpose of this poison pill is to make your stock so sick that the acquirer wouldn't even want to buy it anymore. Here's how the poison pill works. Elon already has 9% of Twitter stock. Not too shabby. If he buys up to 15%, then the poison pill kicks in against him. So once the poison pill kicks in, it's going to offer new Twitter stock at half the price, at a discount, at a cheaper price for like you, us, anyone to buy except for one person and that person is Elon Musk. The poison pill didn't mention Elon by name. No, it didn't. It just mentioned any single sharehold.

who has 15% or more of Twitter stock. Which happens to be Elon Musk. So a poison pill dilutes ownership for the big acquire, Elon in this case, and makes each additional stock that Elon buys more expensive than the last. And yes, this does sound like total voodoo medicine. And yet it is completely legal. This is a uniquely American thing, like the electoral college kind of, but for finance. Yeah, or like Cheetos that are turned into tacos.

So, Jack, what's the takeaway for our buddies? over at Twitter. There is an antidote to the poison pen. There is. And that is the tender offer. The tender offer. Snackers, when Elon offered to buy Twitter last week, it was not a tender offer. Elon did it the old-fashioned way.

He asked Twitter's board for permission to buy the company. Well, now that we know a few days later, that Twitter's board is like totally not interested, Elon could make a switch and he could go direct to shareholders. With a tender offer. A tender offer. He could tender an offer. to each and every Twitter shareholder out there. Yeah, instead of asking board members,

the tender offer is much more hostile. It's aggressive. The tender offer goes directly to shareholders, and each shareholder would get an email from their broker with a pitch from Elon, probably like a big PDF. From Elon. That ends with an offer,

I would like to buy your stock for 5420 a share. So full disclosure, Jack and I were looking at this story and we said, you know what? Why don't we buy some Twitter stock right now and like, see what happens if this happens to happen? Nick and I had some serious pre-fomo. So we bought Twitter stock today so that if Elon does a tender offer, we would get a message from our broker. And if it happens, we'll tell you all about it because like we're curious what happens too.

And then if 51% of those shareholders agree and say, yes, Elon, you can buy my stock, then Elon would decide Twitter's future. Well, Jack, what did Elon tweet over the weekend when it comes to poison pills? He tweeted these three words, love me tender. Love me tender. Now, that's either a threat to do a tender offer, or he's randomly quoting a 1956 Elvis hit. For our second story, Sirius XM stock, it just got downgraded. Honestly, we were shocked at how high it was in the first place. Serious XM is winning because the car is stickier than your phone. Okay, Snackers, when we heard this, we threw our easy pass out the window.

Sirius XM is a publicly traded company worth $26 billion. Now, that's obviously more than Lyft. But it's also the same as Spotify. It's the same as Spotify. We are talking about a satellite radio company whose industry was near bankruptcy, like in the 2000s. Yeah, so serious satellite radio merged with XM satellite radio just to survive. You thought video killed the radio star, didn't you?

But I shouldn't say just to survive because this merged company, it's thriving. 14 years since that industry saving merger, 34 million people are paying 14 bucks a month to listen to Sirius XM. That's a lot of credit card payments coming in every month. It makes sense because, you know, with Sirius XM, there's like no playlist you're selecting on the app. You just pop it to channel 315. You don't have to choose anything.

Like with Spotify, you have to pick a playlist, pick a musician, pick a song. Serious XM, you just turn it on your favorite station's playing. What's the one you're so curious about right now? Well, the latest station is a whole lot of red hot, which is red hot chili pepper. A lot of California case. A lot of can't stop. A lot of other side. My favorite parallel universe.

But Snackers, despite all that shock and stuff, one serious XM statistic is so impressive, but Jack and I had to sit down, stand up and sit back down again. 144 million. That's way more than the 34 million subscribers. 144 million cars have serious XM installed in that. Jack and I are looking at this situation. Series XM is more of a car sales company than a music company. We found that 144 million number in their financials.

And they went on to say, we have agreements with major automakers to offer our satellite radios in their vehicle. Get this. Last quarter, Series XM was built into a record 82% of new cars that were sold. And most of those car makers are offering you a six-month trial subscription to Sirius XM. Yeah. And your car is paying for it. Bob gets you in the Sonata.

You drive off the lot. Next thing you know, you got Series. X-M blast in Channel 315. Nick, my new VW. Yeah. I wasn't a serious XM customer. I am now. Oh, yeah, you are.

I got six months for free. Yeah. First you got hooked, Jack. But that once you've been hooked, then you're going to get booked. Oh, it's about to end my trial subscription. And I'm definitely signing up. Even though I already have Spotify. They hook them and then they book them.

It's what they do. Now, Morgan Stanley did downgrade serious XM stock last week. They did. But the reason they downgraded it is actually, Jack, it's perfect. Because the chip shortage is slowing new. car sales. And Sirius XM depends on new car sales. So this is a media company, Snackers, but really, it's a car accessory company. They depend on the chassis. So Jack, what's the takeaway for our buddies over at Sirius XM? Don't touch the dial. Sirius has the number one lowest

churn in streaming. Snackers, the key to Sirius XM success is in the car because the car is so sticky. Drivers love themselves routine. Love a routine. You stop at the same Panera to get the same cup of coffee every day. Yeah, they're listening to the same station every day, always on their same exit on the LIA. You go to the same gas station because they give you free coffee in the same size every day. Well, those sticky drivers are why Sirius XM enjoys churn that is way lower than their streaming peers. Over at Showtime, a different streamer than Sirius XM, 9% of subscribers quit each year. That's not very good churn.

Over at Disney Plus, yeah, they lose some subscribers every year. Their churn rate is 5%. Spotify, they're betterer at losing customers. Only 4% of Spotify subscribers end each year. Now, honestly, Jack and I, we thought that Netflix was industry leading with just a 2.4% churn rate, only 2.4% of people leaving every year.

But don't touch the dial. No. Because the churn at Sirius XM. 1.6%. That's it. 1.6% churn. It's like a parallel universe. For our third and final story,

the Golden State Warriors, the basketball team, made the playoffs, but now they want the payoffs. So they launched the Warriors Media Network. They got the characters. They're turning them into shows. The Golden State Warriors. They actually got a game tonight. I guess when everyone hears this, the game already would have happened. But they're up one out.

Trivia. Name an NBA team whose location is not the name of a state. The Golden State Warriors. Yeah, there you go. But yeah, can we talk about the new player on the Golden State Warriors? he's like not on the bench, but also not playing in the games either. Golden State Entertainment, which is their new media and entertainment division they just announced. And the goal of this new Golden State Entertainment Division launched by a basketball team

is to leverage the team's brand outside of sports. It sounds like page three of an NBA pitch deck. If you're not leveraging, you better be disrupting something. This is a new entertainment network. They're going to make movies, shmovies, live events. documentaries and more, all vaguely connected to the Warriors basketball team. Yeah, pretty big move because this has not happened with a lot of teams. And apparently Northern California digs it's Hollywood now.

These guys are based in San Francisco, right? Yeah. And the Warriors just told CNBC that, you know, they watched the last dance, the Michael Jordan documentary and ESPN Plus, and they really liked it. That's when the head of this new division said, you know what? Content is king. And then that new division looked in the mirror and said, you know what? We aren't even in the sports biz.

where in the content biz. Now, this guy probably saw the New York Yankees. Good point, good point. Forbes just gave a $7 billion valuation, the best in sports. Is that the biggest? That's the biggest in all of sports. It's the best in all of sports. The New York Yankees.

And you have to give some credit to their media arm, which is the Yes Network. Yeah, Snackers, when you think about the Yankees, you think about baseball, but you really should be thinking about media too. The Yankees are worth $7 billion. Yes Network alone is worth $3.5 billion. Yeah, because the Yankees fans can't get enough World Series nostalgia watching. No, they can. Watch that L. Duke gave pitch 30 times in a row.

Show me a Tim Wakefield knuckleball. I'll show you an Aaron Boone home wrap. But here's the key distinction here, Snackers. Golden State Entertainment is not going to become another streamer. Like, they're not turning this into Warriors Plus. They're not zucking Netflix over there. No, they plan to make shows about the Warriors and then license those shows to streaming platforms. Because like Jack and I have said before, media really breaks down into two parts.

You got the content creation and then there's the content distribution. And this basketball team, they do content. They're going to create more. Yeah, they're not doing the techie cord cutting distribution. So, Jack, what's the takeaway for our buddies over at Golden State Warriors Entertainment? Why create characters when they already exist? Yeah, Snackers, right now, today, content has never been in more demand. So we're seeing more real-life characters become the stars of content for our streaming

pleasure. Three top shows streaming right now are based on real-life villainous startup characters. Travis Kalnick, Elizabeth Holmes, and Adam Newman. Massa! Jamie Diamond, you get me. Oh, Jack, what's the top show on HBO Max right now? Winning time. A shmovie about the 1980s, Los Angeles Lakers Dynasty. So Snackers, Disney's core asset is its characters like Mickey Mouse. The Warriors core asset is Steph Curry. And they're just now realizing he's a character, too. Jack, can you whip up the takeaways for us over there?

Twitter just popped a poison pill to stop Elon's takeover. And there's only one antidote to the poison pill, and that's the tender offer. For our second story, Sirius XM stock got downgraded, but we're just impressed that it's the same value as Spotify. And Sirius' churn is just ridiculously low. It's seriously low. For our third and final story, The Warriors, just launched a media entertainment division. And their roster, past and present, is also the roster of characters.

Now, time for our snack fact of the day. This one sent in by Zach Garber from lovely Baltimore, Maryland. Last week, we warned you about shrinkflation. It's kicking up a notch or two. Instead of raising prices, companies are like shrinking the size of the packaging on us. We get less. We also asked you to let us know where you're seeing shrinkflation in the wild. And Jack, where did Zach Gerber see shrinkflation in the wild in lovely Baltimore?

Steaks. Steaks. Snackers beef is getting smaller. In fact, Burger King was just sued for making their burglars. burgers too small. There is a class action lawsuit right now that the Whopper is 35% smaller than it's advertised these days. I know how flame broiling works and it doesn't shrink it that small. Wendy's going to start changing the shape of that square on us. Next thing I know it was a triangle. Have it your way? I didn't want it this way. Snackers, you look fantastic today. If you haven't yet, ask a buddy, H-Y-H-Y-S-D.

Have you had your snack? That's how we grow the pot. If you know, you know. And before we go, happy birthday to Lil Mary McCall, turning three with an avocado balloon in San Francisco. And happy birthday to Nora Winter in Denver, Colorado. And Robert Gray, happy birthday over in Brooklyn. And happy 27th to Caleb Peterson in Nashville, Tennessee. And Jack, Ashley, and Damien just had the anniversary down in St. Louis, Missouri. And big congrats to Danielle, who just got a new job at a tech startup. She's crushing it in the East Village.

Where should she celebrate in the East Village, by the way? What are you thinking? Boughhouse? I'll do Bowsh. You can't beat those Vietnamese buns. You can't beat those buns. Well, Momo Fooker, you can't beat that. Those are fantastic buns. This is Jack. I own stock of Disney, Netflix, and Volkswagen, and Nick and I both own stock of Spotify. And now some Twitter, too. Robin Hood Snacks, Newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, Inc, or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any

security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve on the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robin Hood Markets, Inc., Robin Hood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principle and past performance, does not guarantee future results. Robin Hood Financial LLC, member Finra, SIPC.

It's so harder.