Podcast Summary: Bloomberg Talks
Episode: Ariel Chairman & Co-CEO John Rogers Talks Small Value Companies
Date: October 11, 2025
Host: Bloomberg
Episode Overview
This episode features a rich conversation between the Bloomberg host and John Rogers, Chairman and Co-CEO of Ariel Investments. Rogers shares insights into the often-overlooked world of small value companies, the outlook for the entertainment sector post-pandemic, dealmaking trends, and his views on the evolving political and economic landscape. The discussion weaves through current market volatility, the impact of U.S.-China tariffs, and the recovery narrative of Chicago.
Key Discussion Points & Insights
Market Volatility & Political Tensions
- Backdrop: The episode begins against a backdrop of sudden market downturns attributed to renewed U.S.-China tariff fears and unpredictable White House messaging.
- "[Markets] are hitting fresh session lows as we speak. …the biggest one day drop since…April..."
— Bloomberg Host (00:36) - The conversation sets the scene for Rogers’ insights by mentioning President Trump’s social media activity and China’s responsive measures on trade, raising fresh concerns for investors.
Investing in Small Value Companies
- Rogers highlights the current neglect of the small value segment, contrasting it with attention showered on mega-cap growth stories like Nvidia and Apple:
- “They really have been ignored. They’re kind of the ugly ducklings… The little mundane businesses that we’ve invested in for 42 years just seem particularly orphaned these days. So we’re seeing great ideas and excited to be doing the research.”
— John Rogers (02:04)
- “They really have been ignored. They’re kind of the ugly ducklings… The little mundane businesses that we’ve invested in for 42 years just seem particularly orphaned these days. So we’re seeing great ideas and excited to be doing the research.”
- Key Takeaway: Rogers remains bullish on the long-term prospects of small value stocks, viewing the current market sentiment as presenting compelling opportunities.
The Changing Face of Entertainment Investment
- Post-Covid, Rogers observes a persistent appetite for live, communal experiences:
- “The next generation…love experiences. They want to go out and be together…to watch a ball game, watch a movie, go to a concert…”
— John Rogers (02:47)
- “The next generation…love experiences. They want to go out and be together…to watch a ball game, watch a movie, go to a concert…”
- He points to innovative venues like the Sphere as examples of how intellectual property and immersive venues can drive new waves of attendance and revenue.
- Speculation about future event themes—“Maybe one day, you know, it could be Star Wars, maybe it could be Harry Potter. You never know what could be next…”—shows the sector’s evolving potential.
Paramount’s Growth and Industry Consolidation
- Rogers discusses Ariel’s investments in entertainment, notably Paramount, expressing belief in its latent value but doubts about its near-term growth given heated competition.
- “That’s still an open question. …you’re competing with Netflix…Apple and Amazon, etc. And whether you can grow in that environment is something that’s really still an open question.”
— John Rogers (04:12)
- “That’s still an open question. …you’re competing with Netflix…Apple and Amazon, etc. And whether you can grow in that environment is something that’s really still an open question.”
- On possible mergers like with Warner Brothers Discovery:
- “It brings scale… huge synergies… extraordinary amount of cost cutting that's there. I think there’s this real potential…”
— John Rogers (05:21)
- “It brings scale… huge synergies… extraordinary amount of cost cutting that's there. I think there’s this real potential…”
Chicago’s Recovery & Civic Leadership
- Addressing negative national narratives about Chicago:
- “The city has never been more beautiful… the safety issues are drifting away, the violence is going down... Mayor Johnson’s done a great job. JB Pritzker has done a great job… our business community, our civic committee… have come together and we're…on the way back. Things are great.”
— John Rogers (06:25)
- “The city has never been more beautiful… the safety issues are drifting away, the violence is going down... Mayor Johnson’s done a great job. JB Pritzker has done a great job… our business community, our civic committee… have come together and we're…on the way back. Things are great.”
- Notable: Rogers emphasizes community collaboration and recent improvements, directly pushing back on “the ire out of the White House.”
Tariffs, Market Stability, and Exposure
- The unpredictability of U.S.-China tariffs remains a central concern for Rogers, especially for small and mid-cap stocks exposed to global trade (e.g., Mattel):
- “None of us that work in the markets day to day like to see the volatility… we’re looking for stability and this is kind of a fragile atmosphere… Having these challenges domestically around the tariffs is something I think is really problematic.”
— John Rogers (07:42)
- “None of us that work in the markets day to day like to see the volatility… we’re looking for stability and this is kind of a fragile atmosphere… Having these challenges domestically around the tariffs is something I think is really problematic.”
Deal-Making Resurgence
- Rogers is upbeat about the increased pace of mergers and acquisitions:
- “This is going to be a great time for more and more deals to happen. …this regulatory environment is so much more friendlier for acquisitions and mergers… I think you’re going to see one deal after another.”
— John Rogers (08:28)
- “This is going to be a great time for more and more deals to happen. …this regulatory environment is so much more friendlier for acquisitions and mergers… I think you’re going to see one deal after another.”
- He credits less regulatory resistance and strategic opportunity as drivers for continued activity.
Notable Quotes & Memorable Moments
- On Small Value Stocks: “They really have been ignored… seem particularly orphaned these days. So we’re seeing great ideas and excited to be doing the research.” — John Rogers (02:04)
- Experiential Consumption: “Live audience…is something that is really, I think, here to stay. The momentum is continuing to hold.” — John Rogers (02:47)
- Media Industry Consolidation: “It brings scale, as you suggest. …extraordinary amount of synergies…extraordinary amount of cost cutting...” — John Rogers (05:21)
- On Chicago: “The city has never been more beautiful… the safety issues are drifting away, the violence is going down...” — John Rogers (06:25)
- Tariff Concerns: “We don’t like to see the volatility…we’re looking for stability…Having these challenges domestically around the tariffs is something I think is really problematic.” — John Rogers (07:42)
- Dealmaking Outlook: “This is going to be a great time for more and more deals to happen… I think you’re going to see one deal after another.” — John Rogers (08:28)
Timestamps for Key Segments
- Market Selloff/Political Backdrop: 00:22 - 01:50
- Small Value Investing: 02:04 - 02:31
- The Future of Live Entertainment/Events: 02:31 - 03:47
- Paramount, Media Growth, M&A: 03:47 - 05:59
- Chicago’s Narrative & Civic Leadership: 05:59 - 07:10
- Tariff Risks for Mid-Cap Stocks: 07:10 - 08:05
- Outlook for Dealmaking: 08:05 - 09:14
Conclusion
John Rogers delivers a thoughtful exploration of overlooked small value equities, the enduring demand for live experiences, and the complex mix of risk and opportunity in today’s media and investment environment. He offers hope for both Chicago’s resurgence and America’s economy, while remaining pragmatic about the headwinds posed by policy and global tensions. His insights are candid, forward-looking, and grounded in decades of market experience—making this episode a must-listen for investors and observers alike.