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Time Is Money

Oct 1, 2024 • 5 min read

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U.S. Port Employee Strike
TPG Acquires DirecTV For $7.6B

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U.S. Port Employee Strike:

Today, a U.S. port strike has begun, with 45,000 dockworkers represented by the International Longshoremen’s Association (ILA) walking off the job. This strike impacts key ports along the East and Gulf Coasts, from Maine to Texas, following unresolved contract negotiations with the United States Maritime Alliance (USMX). Central to the dispute are wage demands—the union is seeking a 77% raise over six years, while employers have proposed a 50% increase, along with improved healthcare and retirement benefits. Another major issue is the ILA’s push to limit automation, citing concerns about job security.
The strike is already causing disruptions to the U.S. supply chain, as these ports handle about half of the nation’s containerized goods. With the holiday season approaching, shipment delays are expected, especially for key products like automobiles, electronics, and perishables, which could face shortages. Many businesses had anticipated the strike, rerouting shipments to other ports, but this has led to congestion and additional delays elsewhere.
International effects are also being felt, particularly in Europe and Central/South America, where economies depend on U.S. trade. Despite the growing economic impact, the Biden administration has opted not to invoke the Taft-Hartley Act, allowing the strike to proceed without federal intervention. As negotiations continue, the strike could extend into 2025, worsening supply chain disruptions and affecting industries across multiple sectors.

TPG Acquires DirecTV For $7.6B:

TPG has solidified its full control of DirecTV by acquiring AT&T’s remaining 70% stake for $7.6 billion, positioning the company for a major merger with Dish Network. As part of the deal, DirecTV will take over Dish and Sling TV from EchoStar in a debt exchange transaction, assuming $9.8 billion of Dish's debt. The merger would create the largest pay-TV provider in the U.S., combining over 19 million subscribers, and is expected to generate $1 billion in annual cost savings through streamlined operations.
The deal is a significant lifeline for Dish, which has been struggling under heavy debt and declining satellite TV subscriptions. This merger will help both companies consolidate resources and reduce redundancies, allowing them to better compete with the growing dominance of streaming services like Netflix and Disney+. However, regulatory scrutiny remains a hurdle, as previous merger attempts between DirecTV and Dish were blocked over antitrust concerns, though the changing market landscape may now allow the merger to proceed.
The newly formed entity would control a large portion of the U.S. pay-TV market, surpassing competitors like Charter Communications. The combined company aims to leverage its scale to negotiate better deals with content providers and improve its streaming offerings. With the media industry rapidly shifting towards digital platforms, this merger represents a strategic move to adapt to the evolving consumption habits, though it remains subject to regulatory approval, with the deal expected to close by 2025.
In 2024, streaming services officially overtook traditional pay TV in both revenue and viewership, accounting for over 40% of total TV usage in the U.S. Cable and satellite TV combined now make up less than 30%, reflecting a sharp decline in traditional television as younger audiences shift to on-demand and more affordable streaming options. The remaining 30% of TV usage is attributed to broadcast television, which continues to attract viewers for live sports, news, and major events. Streaming services, fueled by ad-supported models, have grown rapidly to over 208 million U.S. subscribers, solidifying their dominance in the entertainment landscape.

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