Media Takeover Wars, Retail Strategy, and Industry Revival - Episode Hero Image

Media Takeover Wars, Retail Strategy, and Industry Revival

The Best One Yet · · Listen to Original Episode →
Original Title:

TL;DR

  • Paramount's hostile takeover attempt of Warner Brothers, offering $30 per share, bypasses the board to appeal directly to shareholders, creating an epic vote against Netflix's lower offer.
  • Sephora's exceptional sales growth, exceeding competitors like Ulta and Amazon, stems from exclusive brand partnerships and leveraging every retail inch as a strategic selling opportunity.
  • Frozen yogurt's revival, led by 16 Handles, is driven by a supply-side correction rather than demand, as an oversaturated market was the primary cause of its previous decline.
  • David Zaslav, CEO of Warner Brothers Discovery, is poised to become a billionaire regardless of the takeover outcome, as the company's value as a pawn in streaming wars exceeds its standalone worth.
  • Justin Bieber's public complaint about an iPhone dictation button, causing accidental recordings, negatively impacted Apple's stock, highlighting the influence of celebrity endorsements and user experience flaws.

Deep Dive

Paramount's aggressive bid to acquire Warner Brothers, offering a higher price and bypassing the board through a hostile takeover, highlights the chaotic and high-stakes nature of the streaming wars. This maneuver, funded by a consortium of Trump-allied investors, suggests that geopolitical influence and financial backing from sovereign wealth funds are becoming critical factors in major media acquisitions, potentially overshadowing traditional regulatory approval processes. The ultimate winner of this bidding war may well be Warner Brothers Discovery CEO David Zaslav, who stands to profit significantly regardless of the final deal, positioning the company as a valuable pawn rather than an independent entity.

Sephora is achieving record sales despite intense competition from online retailers, direct-to-consumer influencers, and other beauty chains by mastering a retail strategy focused on maximizing every inch of customer engagement. By offering exclusive brands, leveraging the economic principle that consumers will always treat themselves with small luxuries regardless of economic outlook, and optimizing store layouts for maximum productivity and impulse purchases, Sephora demonstrates that a relentless focus on the customer experience can drive immense profitability. This approach, where every touchpoint is a selling opportunity, positions Sephora as a leader in a highly competitive market.

The frozen yogurt industry, particularly the 16 Handles brand, is experiencing a resurgence, driven by a new leadership that correctly identified oversupply, not a lack of demand, as the industry's core problem. By reformatting stores to cater to modern trends like a zero-proof nightlife option and offering high-protein flavors, and by strategically granting franchises to ambitious individuals, 16 Handles is sparking a revival. This turnaround underscores that even an oversaturated market can be revitalized by adapting the business model to current consumer preferences and by recognizing that past success can lead to its own downfall if not managed strategically.

Action Items

  • Audit Paramount's offer: Analyze regulatory approval likelihood by examining relationships with Trump-allied sovereign wealth funds and Jared Kushner's firm.
  • Evaluate Sephora's strategy: Measure the impact of exclusivity on 300 upscale beauty brands and their contribution to all-time high sales.
  • Track 16 Handles' supply chain: Analyze the impact of the supply surplus on frozen yogurt industry sales and store count decline.
  • Measure Sephora's store productivity: Quantify revenue generated per square inch across 3,400 global stores, focusing on strategic placement of trending and exclusive products.

Related Episodes

Key Quotes

"Paramount is attempting a hostile takeover for our second story sephora's makeup sales are at an all time high right now thanks to the same strategy that works in football and it's the only strategy that works if you're trying to sell something and our third and final story pinkberry t c b y 16 handles delicious nick you noticed more froyo chains popping up around you i kind of want to lick the podcast right now we'll explain why frozen yogurt is the hottest food of this winter and it's not just nostalgia don't make a lick sound right now i was going to say so but yet before we get to that wonderful mix of stories fantastic mix of stories love the mix of stories for t boy tuesday jack they've got some awkward times going on over at apple yeah you see apple stock is at an all time high but everybody is leaving"

The hosts introduce the day's top business news stories, highlighting Paramount's attempt to acquire Warner Brothers and Sephora's record sales, attributing the latter to a strategy also used in football. They also tease a discussion on the resurgence of frozen yogurt. Nick Martell and Jack Crivici-Kramer frame these as the essential business news for their audience.

"Paramount's offer bypasses warner brothers' board of directors which voted on friday to sell the company to netflix instead paramount is aggressively going directly to warner brothers shareholders to vote on which deal is better and that is the definition of a hostile takeover the result is an epic vote for shareholders of warner brothers by january 8th they have to decide do we want to sell to netflix or do we want to sell to paramount yes which one are you gonna give your roast to now paramount's pitch is not only are we offering more money than netflix but we're also more likely to be approved by regulators"

Jack Crivici-Kramer explains the financial term "hostile takeover," detailing how Paramount's offer to Warner Brothers' shareholders bypasses the board's decision to sell to Netflix. He emphasizes that this direct appeal to shareholders is the defining characteristic of a hostile takeover and notes Paramount's argument that their offer is financially superior and more likely to gain regulatory approval.

"Sephora has faced more competition than ever before and yet sephora is thriving more than ever before ulta beauty is gaining market share amazon started selling subscription makeup online jack tiktok shop beauty influencers are selling serums directly through get ready with me videos and yet sephora's 3 400 global stores are in their all time high era and nick and i found a few reasons why well the first jack is exclusivity of the 300 upscale beauty brands that sephora sells half you can only buy at sephora yeah we noticed that sephora basically signs makeup brands like uh teams sign athletes if you want the new road blush you can only buy it at sephora"

Nick Martell highlights Sephora's continued success despite increased competition from online retailers and social media influencers. He points to the exclusivity of its upscale beauty brands as a key factor, explaining that Sephora secures these brands in a manner similar to how sports teams sign athletes, limiting their availability elsewhere.

"well the first jack is exclusivity of the 300 upscale beauty brands that sephora sells half you can only buy at sephora yeah we noticed that sephora basically signs makeup brands like uh teams sign athletes if you want the new road blush you can only buy it at sephora and the second reason for the sephora surge is economic we told you before about the lipstick index if you feel bad about the economy you'll still buy a lipstick as a little treat for yourself and if you're feeling good about the economy you'll also still buy lipstick you'll just buy a more expensive lipstick so no matter the economic situation somebody's splurging on glossier at sephora or maybe christian dior if they're feeling good about the economy and the third reason sephora is in its all time high era is our takeaway but jack since you have a 42 step skincare routine and were once a backup d3 college high school quarterback i feel like this sephora takeaway was made for you you ready for this jack what's the takeaway for our buddies over at sephora in the competition of retail you have to fight for every inch yetis last month jack and i got to interview the ceo of lyft david risher who has this great rule from his days at amazon here it is every page must sell the idea is that every part of the customer experience must add value every moment is a selling opportunity well that's how sephora thinks about their stores as their cmo put it every square inch must be productive"

Nick Martell elaborates on Sephora's success, citing the exclusivity of its brands and economic factors like the "lipstick index" as reasons for its high sales. He also introduces the concept that "every square inch must be productive," a strategy emphasizing that every part of the customer experience should add value and create a selling opportunity, drawing a parallel to retail competition being a "relentless game of inches."

"but yetis here we are years after the pandemic and there are signs of life in that poorly built froyo swirl that just toppled over in your dish yeah bro tip even if you want a cone get a dish because you're not building that thing right always get the dish we jumped in t boy style and the new york times just did a deep dive on 16 handles the east coast chain almost in bankruptcy and it's a wild story about a young man who has saved the brand 16 handles and the industry of self serve frozen yogurt this is wild his name is noah kuni lichtman and he made a bet that the problem wasn't with froyo demand it was with froyo supply so he took out a 500 000 loan from the us small business administration when he was only 23 years old and jack he didn't just pray for millennial nostalgia he reformatted the stores to adapt to 2020 trends like protein maxing protein maxing what do you do with that he introduced a high protein chocolate peanut butter banana flavor that has more grams of whey than a burger"

Jack Crivici-Kramer discusses the revival of frozen yogurt, specifically mentioning the brand 16 Handles and its near bankruptcy. He introduces Noah Kuni Lichtman, who saved the brand by securing a significant loan and adapting stores to modern trends like "protein maxing," offering high-protein flavors. This indicates a strategic shift to meet current consumer demands.

"so jack what's the takeaway for our buddies in the froyo revival why did frozen yogurt ever fall well it was a victim of its own success yetis today froyo entrepreneurs are betting this isn't a fad they're betting that this is a multi generational trend they would argue the reason 16 handles gotten into trouble was its business model froyo was so successful that it got simply too big this is fascinating but it turns out self serve machines are not expensive and since customers can pour and build their own

Resources

External Resources

Books

  • Gods of New York - Mentioned as an audiobook listened to during a flight.

Articles & Papers

  • "The New York Times" - Referenced for a deep dive on 16 Handles and for data on froyo sales decline.

Tools & Software

  • Splitwise - Mentioned metaphorically in relation to how Paramount can afford to outspend Netflix.
  • Evite - Mentioned metaphorically in relation to how Paramount can afford to outspend Netflix.
  • Venmo - Mentioned metaphorically in relation to how Paramount can afford to outspend Netflix.

People

  • Justin Bieber - Mentioned for dropping a "diss track" on an iPhone feature.
  • Steve Jobs - Mentioned in relation to Justin Bieber's complaint about an iPhone feature.
  • Larry Ellison - Mentioned as the second richest man in the world and a potential buyer of Paramount and Warner Brothers.
  • Jared Kushner - Mentioned as running Affinity Partners, a private equity firm funding Paramount.
  • David Zaslav - Mentioned as the CEO of Warner Brothers Discovery, whose strategy is discussed.
  • Noah Kuni Lichtman - Mentioned as the individual who saved the 16 Handles brand and the froyo industry.
  • Molly - Mentioned as someone who used to go to 16 Handles with Jack.
  • Neil Devy - Congratulated for surviving a bachelor party in Tulum.
  • Courtney and Lucas Weatherby - Congratulated on their upcoming marriage.
  • Danny Rigalato - Congratulated on their birthday and move to San Francisco.
  • Selvin Dubois - Congratulated on their birthday in Guatemala.
  • Addie Gilbert - Thanked for creating a "profit puffy" graphic.

Organizations & Institutions

  • Paramount - Mentioned as attempting a hostile takeover of Warner Brothers.
  • Warner Brothers - Mentioned as the target of a takeover attempt by Paramount and Netflix.
  • Netflix - Mentioned as previously attempting to acquire Warner Brothers.
  • Apple - Mentioned in relation to stock performance, executive departures, and Justin Bieber's complaint about an iPhone feature.
  • Meta - Mentioned as the company a former Apple chief designer is joining.
  • Mar-a-Lago - Mentioned in relation to regulators approving buyers of Warner Brothers Discovery.
  • Saudi Arabia - Mentioned as a sovereign wealth fund from the Middle East that is part of the Paramount ownership group.
  • Abu Dhabi - Mentioned as a sovereign wealth fund from the Middle East that is part of the Paramount ownership group.
  • Qatar - Mentioned as a sovereign wealth fund from the Middle East that is part of the Paramount ownership group.
  • Affinity Partners - Mentioned as a private equity firm run by Jared Kushner that is funding Paramount.
  • US Small Business Administration - Mentioned as the source of a loan for Noah Kuni Lichtman.
  • Columbia University - Mentioned as the MBA program where a student is franchising 16 Handles.
  • Sephora - Mentioned for its all-time high sales and strategy in the beauty industry.
  • Louis Vuitton - Mentioned as the owner of Sephora.
  • Ulta Beauty - Mentioned as a competitor to Sephora.
  • Amazon - Mentioned as selling subscription makeup online and as a former employer of David Risher.
  • Lyft - Mentioned for its CEO, David Risher, and his rule from Amazon.
  • 16 Handles - Mentioned as a frozen yogurt chain experiencing a revival.
  • Pinkberry - Mentioned as a millennial-era frozen yogurt chain.
  • Mr. Softy - Mentioned as a soft serve brand for boomers.
  • Carvel - Mentioned as a soft serve brand for boomers.
  • Tasty Delight - Mentioned as a soft serve brand for Gen X.
  • Cold Stone Creamery - Mentioned as a soft serve brand for Gen X.
  • Disney - Mentioned as a company in which Nick and Jack own stock.
  • The Best One Yet - Mentioned as the podcast name.
  • The Best Idea Yet - Mentioned as a related deep dive show.
  • Vital Proteins - Mentioned as a sponsor.
  • Framer - Mentioned as a website builder and design tool.
  • Audible - Mentioned as a sponsor.
  • Airbnb - Mentioned as a platform for hosting and generating income.
  • New York Yankees - Mentioned as a subject of an audiobook.
  • Giants - Mentioned in relation to the New York Giants football team.
  • SpaceX - Mentioned as planning an IPO at a $1 trillion valuation.
  • China - Mentioned for its trade surplus exceeding $1 trillion.
  • Sweetgreen - Mentioned as the first fast-casual chain with a value meal.
  • Chipotle - Mentioned as a competitor to Sweetgreen.
  • McDonald's - Mentioned in relation to the color red making people hungry.
  • KFC - Mentioned in relation to the color red making people hungry.
  • Burger King - Mentioned in relation to the color red making people hungry and the color yellow.
  • Wendy's - Mentioned in relation to the color red making people hungry.
  • In-N-Out - Mentioned in relation to the color red making people hungry.
  • Panda Express - Mentioned in relation to the color red making people hungry.
  • Pizza Hut - Mentioned in relation to the color red making people hungry.
  • Red Lobster - Mentioned in relation to the color red making people hungry and its bankruptcy.
  • Doordash - Mentioned in relation to food delivery apps.
  • Resi - Mentioned in relation to food delivery apps.
  • OpenTable - Mentioned in relation to food delivery apps.
  • Coca-Cola - Mentioned in relation to the color red making people hungry.
  • Red Baron Pizza - Mentioned in relation to the color red making people hungry.
  • Kellogg's Frosted Flakes - Mentioned in relation to the color red making people hungry.
  • Avery - Mentioned as a company that makes labels, stickers, and business cards.

Websites & Online Resources

  • tickets.austintheatre.org - Provided as a link for The IPO Tour tickets in Austin, TX.
  • arlingtondrafthouse.com - Provided as a link for The IPO Tour tickets in Arlington, VA.
  • ticketmaster.com - Provided as a link for The IPO Tour tickets in New York, NY.
  • squadup.com - Provided as a link for The IPO Tour tickets in Los Angeles, CA.
  • tboypod.com/shop/product/economic-support-yeti-doll - Provided as a link to purchase a TBOY Yeti Doll.
  • tboypod.com/newsletter - Provided as a link to subscribe to the newsletter.
  • wondery.com/links/the-best-idea-yet/ - Provided as a link to listen to "The Best Idea Yet."
  • qualtricsxm88y5r986q.qualtrics.com/jfe/form/SV_dp1FDYiJgt6lHy6 - Provided as a link for new listeners to fill out a survey.
  • tboypod.com/shoutouts - Provided as a link to submit a shoutout or fact.
  • www.instagram.com/tboypod - Provided as a link to the podcast's Instagram.
  • www.tiktok.com/@tboypod - Provided as a link to the podcast's TikTok.
  • www.youtube.com/@tboypod - Provided as a link to the podcast's YouTube channel.
  • www.linkedin.com/in/nicolas-martell/ - Provided as a link to Nick Martell's LinkedIn.
  • www.linkedin.com/in/jack-crivici-kramer/ - Provided as a link to Jack Crivici-Kramer's LinkedIn.
  • tboypod.com/ - Provided as a general link for anything else related to the podcast.
  • art19.com/privacy - Provided as a link to the privacy policy.
  • art19.com/privacy#do-not-sell-my-info - Provided as a link to the California privacy notice.
  • vitalproteins.com - Provided as a website for Vital Proteins.
  • framer.com/design - Provided as a website to start creating with Framer.
  • audible.com/tboy - Provided as a link for a free 30-day Audible trial.
  • airbnb.com/host - Provided as a link to find out how much an Airbnb property might be worth.
  • wonderry.com/survey - Provided as a link to fill out a survey.

Podcasts & Audio

  • The Best One Yet - Mentioned as the podcast name.
  • Robinhood Snacks - Mentioned as the former name of "The Best One Yet."

Other Resources

  • Hostile Takeover - Mentioned as a finance term used to describe Paramount's offer to Warner Brothers.
  • Lipstick Index - Mentioned as an economic indicator related to lipstick sales.
  • Sumo Stock - Defined by Jack and Nick as a stock where investors are "straight up missing out" until an IPO.
  • Trade Surplus - Mentioned in relation to China's record-breaking surplus.
  • Value Meal - Mentioned in relation to Sweetgreen offering a $10 bowl.
  • Subliminal Message - Discussed in relation to colors that evoke hunger.
  • Profit Puppy Graphic - Mentioned as a graphic created by Addie Gilbert.

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