Dez Reads. M&A Chilling Effect, Adidas Steps in It, Mike Bova’s NBA Update, and more.
It’s Friday, and you know what that means: Mike Bova is writing about NBA television rights again.
Just kidding, it’s Dez Reads!
Mike Bova does provide an interesting update in the never-ending saga over the NBA’s next TV deal, which is now devolving into a full-on three-way conflict between Warner Brothers, Amazon, and the NBA. And we do love a good corporate scrap around here.
Eric Dezenhall lends his experience with the circus that is congressional oversight; Steven Schlein notes that the chilly M&A marketplace has scuttled another big deal; Will Kim analyzes the lack of foresight in Adidas’ marketing department; and Mark Emerson guides us through the streaming options for the Paris Olympics (prepare for a couple of trips to your parents’ house to provide Peacock tech support).
As for me, I’m heading to Isle Royale National Park – the beautiful, silent middle of nowhere – with my family for a week of backpacking, recharging our batteries, and hopefully finding some inspiration amongst the moose, wolves, and warblers. Dez Reads is off next week; enjoy your August recess!
Here we go.
Business.
NYT. Google’s $23 Billion Plan to Buy Cybersecurity Start-Up Wiz Falls Apart
Wiz, a four-year-old Israeli startup in the cybersecurity space, is the darling of the industry. It generated enough excitement that Google offered to buy the company for $23 billion. This week the deal fell apart.
What happened? Well, the Israelis and their deal consultants got a look at the U.S. regulatory environment. This NYT story buries the lede to the 11th paragraph: A government review of a multibillion-dollar acquisition could take more than a year and sap a company of its momentum. That would be a precious time for Wiz, which has consistently touted its fast growth. The company said earlier this year that it generated more than $350 million in annualized revenue, up from $100 million two years earlier.
Wiz decided it makes more sense to raise money by going public and forge ahead with growing the company. I’m not surprised. Our firm has dealt with several foreign-owned companies that were blindsided by the U.S. regulatory and legal environment. Some of these firms are not new startups but long-established companies. Frankly, if the U.S. regulatory/legal systems weren’t so challenging for business, there would be fewer firms like ours.
– Steven Schlein
USA Today. Adidas apologizes for using Bella Hadid in 1972 Munich Olympic shoe ad
Can shoes be politically controversial? Once again, Adidas has proven that nothing is impossible.
On July 15th, the German sportswear giant launched a release campaign for its SL72 shoes that originates from the 1972 Munich Olympics. With the upcoming Paris Olympics, Adidas intended it to be a timely release, but the company made one miscalculation: using fashion model Bella Hadid to promote this product.
During the Munich Olympics, 11 Israeli athletes were killed by a Palestinian terrorist attack. Hadid identifies as a “proud Palestinian,” and the fact that she was chosen to model these sneakers that symbolize the Munich Olympics drew public outrage, especially in the context of the ongoing conflict in that region.
Adidas already apologized for this mistake, but as PR professionals, we are all too aware that apologies do not fix a brand’s public reputation. Public perception is as unforgiving as ever, and without an effective strategy to manage crises like these, motivated adversaries like competitors and regulators are free to weaponize negative public sentiments to attack vulnerable companies. And the best solution for crises is always prevention, understanding your audience and the media and political climate before launching broad public-facing campaigns.
– Will Kim
Crisis.
PoliFact. Trump rally shooting put scrutiny on Secret Service women, diversity efforts. Here are the facts.
Kimberly Cheatle resigned in the wake of the narrowly failed assassination attempt against Donald Trump and disastrous testimony before Congress. She should have resigned given the colossal failure of allowing an assassin to go unnoticed on a rooftop several hundred yards from where Trump was speaking. A friend pointed out that the Secret Service director was not forced out after the assassinations of JFK and RFK, the shootings of George Wallace and Ronald Reagan, and the attempted shootings of Gerald Ford.
Some believe Cheatle was targeted for being a woman. Perhaps, but I have a different theory. For most of my career in damage control, firing the boss wasn’t the knee-jerk solution to everything. It is now. I challenge you to think about what you would have done better under a rapid-fire attack where you were unable to get a word in — and before an investigation was complete. The demand that Cheatle answer with a yes or no is a case in point. A subpoena does not require that one respond in the syntax demanded. While the public deserves answers, the cause of safety and transparency is not served by such murder boards. Cheatle was right to resign, but she should have also been allowed to speak.
– Eric Dezenhall
Sports.
In the immortal words of Yogi Berra, "It ain't over till it's over.” As of this writing, the NBA has rebuffed Warner Brothers Discovery’s counteroffer targeting Amazon’s $1.9 billion per-season offer. The league told the media company it doesn’t believe it holds legal matching rights for the new media deal, setting the stage for a potential blockbuster legal fight.
The sticking point seems to be that WBD planned on simulcasting games on its cable channel TNT and on its streaming service Max rather than only on its streaming service, which was the offer that Amazon provided.
In a statement, WBD said: “We think they have grossly misinterpreted our contractual rights with respect to the 2025-26 season and beyond, and we will take appropriate action.”
I am not proud of this pun, but it looks like we are going into overtime.
– Mike Bova
The Verge. How to stream the Olympics like a champ
Here we go again–another streaming service to add to the ever-growing list. This time, it’s Peacock, for a good (while temporary) reason: the 2024 Olympics. If you’re like me and can’t miss the action, get ready to pony up for yet another subscription.
NBCUniversal, with its streaming service Peacock, has secured exclusive rights to the Games in the U.S., offering 5,000 hours of live content over two weeks across 39 sports. While you can still catch previously recorded and major events on your local network, you’ll be battling the confusion of whether you’re watching live or previously recorded content, while avoiding constant spoiler notifications online. Whether you’re an Olympic superfan or just want to catch the highlights, Peacock is your best bet. A feature that justifies the subscription is Gold Zone–think NFL Red Zone, which captures all the most exciting highlights, and is hosted by the man himself, Scott Hanson.
So, yes, it’s another subscription to manage, but for the Olympics? IMO it’s totally worth it, especially if Snoop Dogg is going to be commentating.
– Mark Emerson
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