The Drone Arms Race Escalates & Legacy Media’s Hidden Assets

Summary

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Brew Markets: The Drone Arms Race Escalates & Legacy Media’s Hidden Assets

Host: Ann Berry
Date: May 28, 2026

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Episode Overview

In this episode, Ann Berry guides listeners through two headline themes shaping the markets: the rapidly escalating global drone arms race—and its reverberations across defense and tech stocks—and the hidden high-growth pockets within legacy media giants, with a fun “ticker on a sticker” breakdown of Fox, News Corp, SiriusXM, and iHeartMedia. Along the way, the episode touches on Best Buy’s AI-fueled stock surge, Snowflake’s strong results, and a blockbuster Vegas deal, all with actionable insights for investors.

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The Drone Arms Race: Markets, Policy & Stock Winners

Starts ~[00:31]

Key Discussion Points

• Escalation of Military Drone Use

  • Drones (particularly Iran’s Shahed models) are widely used in Middle East and Russia-Ukraine conflicts.
  • Shahed drones: $20,000–$50,000 each—“cheap compared to the expensive air defense missiles required to intercept them.” ([01:10])
  • Missiles: Millions per shot.

• Ukraine’s Industrialization

  • Ukraine is “scaling its domestic industry to produce millions of drones annually for frontline operations and long-range strikes.” ([01:37])

• Expert Opinion

  • Gen. David Petraeus: “Now you have swarms coming at you and we really don’t have a defense for swarms. So there’s a lot going on in this particular corner of military technology.” ([01:57])

• US White House Moves

  • The Trump administration is in talks to fund several US drone companies to ramp up domestic production and reduce reliance on Chinese suppliers.
  • “Some deals could include both loans and direct equity investments, meaning the US Government could actually take ownership stakes in private sector drone companies.” ([02:55])

• Top Stocks Mentioned

  • Performance Drone Works: Army contracts.
  • Neros Technology: Sequoia-backed Silicon Valley firm.
  • Unusual Machines: “Tied to Donald Trump Jr., who is both a shareholder and advisory board member.” Shares “skyrocketed more than 60% today after the reports came out.” ([03:26])
  • Other movers:
    • Lockheed Martin (LMT): Up 1% today, $123B market cap.
    • Kratos (KT): Up 14%, $12B market cap.
    • Aerovironment (AVAV): Up nearly 20%, $10B+ market cap.

• Market & Policy Context

  • “Drones are quickly becoming the next major arms race and Washington clearly wants American companies to leading it.” ([04:23])

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Key Market Headlines

Starts ~[05:05]

Inflation Update ([05:46])

• Core PCE index “up 0.4% for the month and 3.8% year over year... the hottest reading since May 2023.”
• “2% is the inflation target of the Fed... this is the first inflation report under new Fed chair Kevin Walsh.” ([06:01])
• “A little, little tiny bit of evidence that inflation may be improving...” ([06:17])
• Next rate decision: June 17.

Caesars Entertainment Buyout ([06:53])

• “Set to be acquired by Ferida Entertainment in a $17.6 billion all-cash deal... $31 a share, a 49% premium.” ([07:18])
• “Shares up around 1% today.”

Snowflake Earnings Surge ([08:00])

• Snowflake (SNOW): “Shares rose nearly 40% today... revenue $1.4B, up 33% year over year... Adjusted earning 22% above what analysts expected.” ([08:00])
• Announced $6B deal with AWS for Graviton chips—signals AWS momentum in AI.

Best Buy’s Surprising Outperformance ([08:58])

• Best Buy (BBY): “Trading 18% higher... same store sales growth up 2%.”
• Boosted by “Apple’s MacBook Neo” and consumer discretionary spending.
• “Sales doubled year over year in emerging categories like AI glasses, 3D printers, collectibles like Pokemon trading cards and smart rings like the Oura Ring.” ([09:26])
• Transitioning CEO: Jason Bonfig will succeed Corey Berry in October.
• CFO on consumer demand: “With all the talk of the K-shaped economy, we did not see that in the last quarter.” ([10:06])

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Listener Mailbag: “Ticker on a Sticker”—Legacy Media’s Hidden Assets

Starts ~[12:41]

Fox Corporation (FOXA)

• “I am Fox Corporation. I’m a bet on live sports and live news... Market cap of $25B. Shares up 14% this year.” ([12:41])
• Super Bowl cycle: “I reported revenue of $4B, down $370M year over year... because in 2025, I had the Super Bowl, but not in 2026.” ([13:12])
• Adjusted EBITDA up 11% thanks to lower sports rights spending.
• “Banner year for Fox Sports: broadcast home of the World Cup... expecting 150M viewers.” ([13:38])
• Hidden Asset: Tubi, “one of the largest free ad-supported streaming TV platforms in the US... nearly 97 million active monthly users[:] revenue up 27% Y/Y... recently turned a profit.” ([14:21])

News Corp (NWS)

• “Legacy newspaper business also with a hidden asset... Market cap $16.5B, shares up 2.5% this year.” ([14:46])
• Assets: HarperCollins Books, New York Post, The Times of London, Dow Jones (Wall Street Journal, Barron’s).
• “Dow Jones subscriptions up 7% in the most recent quarter... revenue up 8% to $619M. 84% of that revenue came from digital.” ([15:31])
• HarperCollins: digital sales now 25% of revenue, up 11% Y/Y.
• Hidden Asset: Realtor.com “brought in $148M, up 10% Y/Y... Americans don’t stop browsing homes, even in a tough market.” ([16:43])

SiriusXM (SIRI)

• “No longer a melting ice cube... Market cap $10B, shares up 50% this year.” ([16:57])
• 33M subscribers, $171M in free cash flow (more than triple prior year), capex cycle winding down.
• “But the base has been steadily shrinking... not converting as many of those car listeners to subscribers.” ([17:54])
• “What might be driving my share price? It’s podcasts and collecting money from the ads within them. I am the number one podcast network in the US by weekly reach...” ([18:26])
• “Podcast ad revenue grew 37%. Just announced a deal to be the exclusive audio ad rep for YouTube in the US.” ([18:53])

iHeartMedia (IHRT)

• “Proving that radio having killed the video star isn’t dead, at least not yet. Market cap $740M... share price up 18% this year.” ([19:07])
• Largest radio broadcaster in the US: 860 owned stations, 160 markets.
• “The number one use of Alexa smart speaker is AM/FM radio, with iHeart as the most used surface among them.” ([20:01])
• “iHeart broadcast radio reaches more teens each month than TikTok does.” ([20:24])
• Revenue: $361M last quarter, up 6%; digital audio group up 18%; podcast revenue up 27% to $147M ([20:51])
• “Podcast revenue alone increased nearly 30%... if you like celebrity podcasts from Will Ferrell, Charlemagne the Goddess, Bowen Yang, I’ve got him.” ([21:00])
• Potential acquisition: “Bloomberg reported last month that I’m holding talks about a possible sale to you [SiriusXM]... a combined company with $12B in sales could help us hold our ground with Spotify, which might explain why my shares are up 18% this year…” ([21:36])

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Notable Quotes & Memorable Moments

• On the arms race:

  • “Drones are quickly becoming the next major arms race and Washington clearly wants American companies to leading it.” – Ann Berry [04:23]

• On hidden value in ‘old media’:

  • “If you’re still picturing newspapers, get with the times, pun intended. 84% of that revenue came from digital businesses...” – Ann Berry, as News Corp [15:46]

• On Fox’s growth engine:

  • “I have a secret asset over at Fox, a little streaming service called Tubi... One of the largest FAST... platforms in the US with nearly 97 million active monthly users. Revenue there was up 27% year over year. I recently turned a profit for the first time.” – John as Fox [14:02]

• On SiriusXM’s pivot:

  • “What might be driving my share price? It’s podcasts... I am the number one podcast network in the US by weekly reach... Podcast ad revenue grew 37%.” – Ann Berry as SiriusXM [18:26]

• On iHeart’s radio reach:

  • “iHeart broadcast radio reaches more teens each month than TikTok does. That is a banger of a metric.” – John as iHeartMedia [20:24]

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Closing Market Recap

[22:40]

• S&P 500: +0.6%
• Dow: flat
• Nasdaq: +0.9%
• “Despite uncertainty in the Middle East, despite that inflation report getting mixed feedback, the equity markets just continuing to plug on on.”

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Upcoming Episode Teaser

• Next guest: Peter Oey, CFO of Grab – to discuss the Southeast Asia “super app” ecosystem and investing in high-growth emerging markets. ([22:56])

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Episode Summary

This episode of Brew Markets delivered actionable intelligence on two fronts:

• The sharp, investible angles of the global drone race—highlighting which stocks are swinging on government action and shifting geopolitics.
• The surprising digital-driven growth simmering beneath legacy media names, where pipes, subscriptions, and digital ad growth matter more than “old media” stereotypes suggest.

The tone, infused with friendly banter and engaging “roleplay,” made for an accessible, insightful survey of market movers—and pointed to where investors should look next, both on the battlefield and in boardrooms.

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Transcript

[A]

This episode is brought to you by Charles Schwab. Timing the Market, Fighting inflation, Managing risk Financial decisions can be tricky. Investing isn't just math, it's psychology. Your neurons are playing favorites and the market doesn't care. Financial Decoder, an original podcast from Charles Schwab, can help join host Mark Riepe as he breaks down practical strategies to help overcome the mental traps that may affect your investing decisions. [e-mail] FinancialDecoder

[B]

Best Buy shares are on the rise. We examine how AI glasses, 3D printers and smart rings are lifting the tech retailer from Rupert Murdoch's legacy empire to Sirius XM's podcast pivot. We answer one listener's question about the state of media and drones, the next major arms race. We unpack the latest on the White House push to ramp up domestic production and which public companies stand to benefit for Thursday, May 28. That's blue markets Daily and I'm Ann Barry. More market details to come. But first, drones. And this time not the flying taxis we've talked a lot about here, but the unmanned systems used by the military and which have shifted into fierce, sharp focus owing to their prolific use in the Middle east and Russia Ukraine conflicts. Iran's Shahed drones are estimated to cost 20 to $50,000 each. Now it sounds like a lot of money. It is, but it's cheap compared to the expensive air defense missiles required to intercept them. And note that ballistic or cruise missiles can cost millions of dollars over in Europe. Russia has used similar shahed style drones in Ukraine, which in turn has scaled its domestic industry to produce millions of drones annually for frontline operations and for its own long range strikes deep into Russian terr country. Former CIA director and four star general Petraeus recently told CNBC that drone swarms are the next key military threat, saying quote, now you have swarms coming at you and we really don't have a defense for swarms. So there's a lot going on in this particular corner of military technology. Which is why the White House is reported to be making a major bet on America's drone industry, highlighted in a series of articles this week in the Wall Street Journal. According to the newspaper sources, the Trump administration is in talks to fund several US Drone companies as part of a broader push to ramp up domestic drone production and to reduce America's dependence on foreign suppliers, particularly in China. Interesting that this news breaks right off the back of the administration's recent trip to, of course, China. Well, discussions reportedly involve the Pentagon and the Office of Strategic Capital, which is a government backed lending program designed to support industries considered critical to national security. And what makes this unusual is the type of support under consideration. Apparently some deals could include both loans and direct equity investments, meaning the US Government could actually take ownership stakes in private sector drone companies. Well, among those reported to be under review are Performance Drone Works, which already supplies reconnaissance drones to the Army, Nero's Technology, a Silicon Valley startup backed by Sequoia Capital and Unusual Machines, the drones part company tied to Donald Trump Jr. Who is both a shareholder and advisory board member. And here's why this caught our eye. It's really that last name because Unusual Machines is a public company market cap around $900 million, so it's pretty small. And whose shares skyrocketed more than 60% today after the reports came out. Well, several other defense drone stocks also surge, which is really where we've been focusing our attention and wanted to flag here. Lockheed Martin ticker LMT and market cap $123 billion ticks up about 1% today, while Kratos ticker KT market cap $12 billion shot up 14%. And then there's Aerovironment ticker AVAV market cap over 10 billion, up nearly 20% today. Well, the Pentagon hasn't officially confirmed any of the reported funding agreements, at least not yet, saying that negotiations are still ongoing. But one thing is clear, and it's why we're watching. Drones are quickly becoming the next major arms race and Washington clearly wants American companies to leading it. Well, coming up in a moment, a spin through the headlines that are moving the markets today, including why a Sin City icon is about to go private and what's making shares in Snowflake surge. But first, this episode is brought to you by Charles Schwab.

[A]

Is your recency bias Skewing your potential stock picks is attribution bias Messing with your retirement plan? Overconfidence describes our tendency to overestimate our abilities. Loss aversion helps explain why losing a dollar hurts more than gaining a dollar. Financial Decoder, an original podcast from Charles Schwab explains how these cognitive and emotional biases can affect the decisions you make about your financial life.

[B]

Host Mark Reape, head of the Schwab center for Financial Research, and his guests offer actionable insights on what you can do to help fight off these decision making biases. Download the latest episode and [e-mail] financialdecoder or wherever you listen. Well, we've got ticker on a sticker coming on up. Those of you listen often know what that means but first, some headlines moving the markets today. First with mixed motion across the major indexes. That's after this morning's release of core inflation numbers. The Personal Consumption Expenditures Price index, or the PCE, as it's more simply known, showed prices up 0.4% for the month and 3.8% year over year.

[A]

Slightly cooler than expected, but still the hottest reading since May 2023. The report captures what people actually buy and adjusts when they swap one thing for another. That makes it a cleaner read on where prices have really head headed and serves as the Fed's preferred inflation gauge,

[B]

which is why it matters and especially now and especially just a reminder of the context for that 3.8% year over year that clocked in today. 2% is the inflation target of the Fed. Well, this is the first inflation report under new Fed chair Kevin Walsh offering evidence, a little, little tiny bit of evidence that inflation may be improving and possibly a mild rebuttal to the growing chorus of policymakers who think not only not slashing rates but rate hikes may still be on the table. But there is a specter of pricing volatility still hovering around oil prices. That's as the war in the Middle east continues. Well, the next interest rate decision is due out on June 17, which leaves the markets hanging until then to see what Water's first meeting looks like. And I can't wait to read those minutes to see just how much debate there is around what happens with the FOMC next.

[A]

Absolutely. Now let's take a quick spin through some other major market headline news, starting with a Sin City icon, Caesar. Caesars Entertainment announced today that the company is set to be acquired by Ferida Entertainment in a $17.6 billion all cash deal. As part of the arrangement, Caesar's shareholders will get $31 a share. That's a 49% premium over where the stock sat before acquisition rumors started circulating back in February.

[B]

Well, Vertigo Entertainment is owned by the billionaire, the eponymous billionaire who's folding Caesar's 50 Plus Resorts into his existing sports and entertainment portfolio, which includes the Golden Nugget casino chain and the N team, the Houston Rockets. The deal includes a go shop period through July 11, which literally means Caesars can go shop itself and field other offers up until then. Shares up around 1% today. And before I move over, John, I just want to let you know I'm going to be in Vegas. Is that right? In July at the Sphere to watch the Backstreet Boys.

[A]

Backstreet's back. All right.

[B]

I'm so excited. I'm gonna go in like white linen and just rock out. I'm super excited.

[A]

Anyway, you have the choreography down?

[B]

Yes, I do. Of course. Where I'm going with friends, we're going to sort of do it in in sync together. Pivoting over to earnings results before we digress too far, shares in Snowflake, that is ticker snow, rose nearly 40% today. That's after the cloud based AI and data platform company beat on revenue as well as on the bottom line and in addition raised its full year forecast. A revenue of $1.4 billion was up 33% year over year. Adjusted earning came in 22% above what analysts expected.

[A]

And it wasn't just an earnings report out of Snowflake that made headlines today. The company also announced a $6 billion deal with AWS Amazon's web services to expand its use of Amazon's Graviton chips which are designed for the kind of always on AI workloads that are replacing traditional chatbots. It's one of many recent deals that signal that AWS is gaining momentum in AI. Shares in Amazon are trading up about 1% today.

[B]

And finally, shares in Best Buy. I've been waiting for this all day. Ticker BBY are trading 18% higher. 18%. That's after the retailer posted better than expected quarterly results. The company saw same store sales growth, that magic metric for retail that was up 2%, which beat not only Wall Street's expectations but also its own expectations.

[A]

Best Buy said those numbers were boosted by new product launches like Apple's MacBook Neo and bigger tax refunds that gave shoppers a little extra to spend. We've seen that in some recent earnings reports. So what are the shoppers spending on? I found this interesting. Gaming consoles like the Switch 2 and PlayStation 5 were more popular than expected. Plus sales doubled year over year in new and emerging categories like AI glasses, 3D printers, collectibles like Pokemon trading cards and smart rings like the Oura Ring. The results come just a month after the company said CEO Corey Berry will hand over the reins to longtime company veteran Jason Bonfig at the end of October.

[B]

Very interesting that to see it's all discretionary spend. You know this isn't like the laptop that everyone needs to do their school homework. This truly was discretionary spend up at Best Buy. Does make it so hard to unpack what's going on with the consumer.

[A]

Well the CFO even said with all the talk of the K shaped economy, we did not see that in the

[B]

last quarter yeah, it's different. Players are seeing it or not seeing it. It's so hard to unpack. Well, let's take a quick break and when we come back, we put tickers on a sticker to race through the recent results and pivots of some legacy media heavyweights. John, I've noticed you're always present here at the office. No distractions.

[A]

Thanks, Anne. I like to stay focused.

[B]

But you know who is distracted at the office?

[A]

Employees who are financially stressed.

[B]

Exactly right.

[A]

I bet that impacts their productivity too.

[B]

It does. And it makes them more likely to miss work. Missed work can cost employers a lot in lost productivity.

[A]

Costly, unexpected medical bills are productivity killers. But Aflac can help provide financial peace of mind. They aim to pay claims fast, accurately and fairly.

[B]

Offering Aflac isn't just a nice gesture that shows you care. It can be a smart financial move, saving tax dollars when payroll deductions are pre tax.

[A]

And businesses that offer Aflac are likely to stay with aflac. Head to aflac.com brewmarkets to learn more. That's aflac.com brewmarkets so good, so good, so good.

[B]

Everything you want for summer is at Nordstrom Rack stores now and up to 60% off. Stock up and save on the brand brands you love like Vince Sam, Edelman, Frame and Free People. Join the NordicLub to unlock exclusive discounts. Shop new arrivals first and more. Plus buy online and pick up at your favorite Rack store for free. Great brands, great prices. That's why you rack well, earnings season is winding down, which means we can switch to uncaffeinated tea instead of the caffeinated stuff we've been running on. That's because over 90% of the S&P 500 has already reported Q1 results. So we've been taking the opportunity to catch up a bit and address some of the comments and emails sent in by listeners. Well, yesterday, based on a listener's requests, we covered Elf Beauty's billion dollar acquisition of Hailey Bieber's Rhode cosmetics line and how that's been going and what was said in the recent earnings report. And today we're responding to a new suggestion we recently heard from Edgar, who wrote, I'm a fan of the podcast and listen every day. I was wondering your thoughts on media stocks like News Core, Fox and Liberty Media. Well, Edgar, thanks for the note. We love it. And those names in particular that have gotten less coverage of late because all eyes were on the Warner Brothers Paramount Netflix drama. So let's run through some of Edgar's suggestions. Do it with a Bit of energy with our favorite form of roleplay, ticker on a sticker. John, kick us off. I can see your stickers at the ready. You are ready to apply it to your shirt.

[A]

I've got a great sticker with a great ticker. It says F O X. That's Fox. I am Fox Corporation. I'm a bet on live sports and live news. Market cap of $25 billion. Shares are up 14% this year. And I'm one of two distinctly publicly traded companies in Rupert Murdoch's media empire. Fox Network. That's me, Fox News, Fox Sports. That's all me. So let's start with sports. Earlier this month, I reported Q3 earnings and they highlighted the overweight impact of a single day of broadcasting. The super bowl, still the behemoth. For the quarter, I reported revenue of $4 billion, which was down $370 million from the previous year. Why? Because in 2025, I had the super bowl on the Fox Network, but not in 2026. But on the flip side, I reported adjusted EBITDA, a measure of profit of $954 million, which was up 11% from the previous year. Why? Well, in part to lower costs for sports programming rights and production because I didn't have the Super Bowl. That's such an interesting thing to look through at the networks cycle through that sport. But this year is still a banner year for Fox Sports because I will be the broadcast home of the World Cup. My Execs are expecting 150 million combined viewers across the entire tournament. Now, shifting over as far as Fox news, I saw 5% revenue growth despite declining ratings. I was helped by higher carriage fees. That means if your cable bill went up, some of that went to me. And of course, I'm known for broadcast and cable television. But I have a secret asset over at Fox, a little streaming service called tubi. It's one of the largest fast. And Fast is an acronym for free ad supported streaming TV platforms in the US with nearly 97 million active monthly users. I don't break out numbers specifically for Tubi, but revenue there was up 27% year over year. And I recently turned a profit for the first time. Or as we say around the office at Fox, go.

[B]

Even in America, you say goal. Isn't that like an English thing to say?

[A]

I think it's the same word.

[B]

It's the same word. All right, we digress, digress. I am News Core, a legacy newspaper business also with a hidden asset. So here's my ticker. Is NWS trading on the nasdaq. I'm sticking it to my shirt right now. I have a market cap of $16.5 billion and my shares are up two and a half percent this year. I'm the other of the two distinct publicly traded companies in Rupert Murdoch's media empire. But less broadcasting and more publishing. So Harper Collins Books. That's me. The New York Post. That's me. The Times of London. Yes, that's me. So that's books, tabloid and broadsheet. But my largest segment is Dow Jones, which includes the Wall Street Journal and Barron's. These are titans in business news. Well, things are going well for Dow Jones as we've seen an increased appetite for business coverage and information. With total subscriptions to Dow Jo products, up 7% just in the most recent quarter. And of course, with more subscribers comes more revenue, up 8% to $619 million. Well, if you're still picturing newspapers, get with the times, pun intended. 84 of that revenue came from digital businesses and products. So that subscriptions sticky recurring revenue, exactly the kind that the market loves. And Harper Collins also leaning into digital, driven by an increase in ebook and audiobook sales. Digital sal in that brand increasing 11% and now representing a quarter of Harper Collins's revenue. Again, the contribution from the digital side. One last thing. Fox, you may have to be, but I also have hidden asset you may not associate with news Core out of the gate and that is realtor.com Last quarter the site brought in $148 million, up 10% from the prior year. So whether the real estate market is up or whether the real estate market is down and struggling. The point is Americans don't stop browsing homes. We all like to do it. Looking for our dream nook in which to read a book. I love scrolling through real estate listings. Oh yes, it's so soothing.

[A]

Maybe as much as you like reading. I know you're a voracious.

[B]

I love it to read. I just need to read books on real estate. That would be the way to bring it all together.

[A]

Bring your two loves together. All right, I have my sticker. I'm gonna put it on my shirt and it says S I R I because I am SiriusXM. No longer a melting ice cube. Market cap of $10 billion shares are up 50% this year. I'm going to tell you why now I'm the combination of the OG satellite radio companies. Your car may have come with a free trial of my 100 plus channels of music, sports and entertainment. And as a nod to Edgar, who wrote in talking about Liberty Media. I spun out of Liberty Media in 2024. I'm now a standalone, publicly traded company. So how are things for satellite radio? Well, they're evolving. I currently have 33 million subscribers, which is a lot. And those subscribers bring in a lot of cash. Last I generated $171 million in free cash flow, more than triple the prior year. And that was helped in part by significantly lower capex spend. We have to think about that. I'm a satellite radio company. There's satellites up there. And in previous years I had invested a lot in new satellites. And that investment cycle is nearing its end. So that's been helping the bottom line. So great, I've got millions of paying subscribers, but that base has been steadily shrinking for years and we're just not converting as many of those car listeners to full time subscribers.

[B]

I keep getting your ads, you keep offering me free months SiriusXM and I keep declining.

[A]

I won't tell you this because I'm SiriusXM. If you hold out, you might get a dandy of a deal. 99 cents for a year. I mean, we wanna keep those subscriber numbers high.

[B]

Yeah, I've had those. I've still said no.

[A]

So here's the twist. What might be driving my share price? It's podcasts and collecting money from the ads within them. Did you know that I am the number one podcast network in the US by weekly Reach, according to Edison Research. So this podcast is. That's smartless. Office ladies. Conan o' Brien needs a friend. These are all Sirius XM shows. In the first quarter I reported that podcast ad revenue grew 37% and I'm extending this success in ads, having just announced a partnership with YouTube to be an exclusive audio advertising representative in the US so just going all in on audio ads, it's a significant shift from the ad free music service I was when I launched. Like literally when I launched satellites into orbit.

[B]

Well, that is a tough act to follow, but I'm gonna try because I am. I heart media. Proving that radio having killed the video star isn't dead, at least not yet. So I heart IHRT is the ticker on my sticker on my shirt. And I've actually got friends at iHeartMedia, so I'm very excited to be iHeartMedia. I really like them. Ticker IHRT on the NASDAQ market cap of $740 million. So it's the smallest by a long stretch of all of these media assets. I am the smallest Media assets, which is true in life, as in. As in a ticker and a sticker. Share price up 18 this year. Now, my background is in terrestrial radio. I was previously known as Clear Channel and I'm still the largest radio broadcaster in the United States with 860 owned radio stations in 160 markets. So if you listen to Light 106.7 or the Big 98, 98 or Z100 or KFI, you are listening to one of my radio stations, iHeart, and listening to our ads. Now, before you dismiss radio as a dying medium, according to my investor deck, the number one use of Alexa smart speaker is AM FM radio. With iHeart as the most used radio surfaced among them.

[A]

Who knew?

[B]

Who knew? And iHeart broadcast radio reaches more teens each month than TikTok does. That is a banger of a metric. Yes, that is amazing.

[A]

That was on the first slide.

[B]

That is the first slide. I have an excellent investor relations team popping that in the first slide. So they are cherry pick stats. Nevertheless, traditional radio is still a surprisingly massive business because last quarter it did generate $361 million, up 6%. But here's the catch. Those stations does have high fixed costs. So like Sirius xm, I've been trying to reinvent myself around profitable, higher margin podcasting, streaming audio and digital advertising. And that transformation is starting to show up in my numbers. My digital audio Group generated $327 million in revenue last quarter. That's up 18 from the prior year. And here's the real one. Podcast revenue alone increased nearly 30%, up 27% to reach $147 million. So if you like celebrity podcasts from Will Ferrell, Charlemagne, the Goddess, Bow and Yang, I've got him. Wait.

[A]

I am still Sirius xm and I love celebrity podcasts and so does Netflix.

[B]

Because you've been jumping on the bandwagon right over at Netflix and trying to find a way to broadcast sort of stream those in a very visual way. Well, Sirius xm, I know that you love celebrity podcasts because Bloomberg reported just last month that I'm holding talks about a possible sale to you. There's no guarantee that any deal would happen, of course, and our reps have all declined to comment. But a combined company with more than $12 billion in sales could help us hold our ground with Spotify, which might explain why my shares are up 18% this year, of course, not just because of speculation of a potential deal with you, Sirius, but perhaps that there's some fundamental growth coming about in iHeart in a differentiated way we made it through. Yes, we deserve a glass of water, but thank you for the suggestion, Edgar. And if you have a company or sector you'd like us to cover, then leave a comment or send us an email at brewmarketshoworning brew@ There it is, the closing bell 4pm on the east coast and the markets wrapping up for the day. We don't have a ticker tape, so of course let's throw it over to our human ticker app producer, John that's

[A]

right, The S&P 500 finished up 6/10 of a percent, the Dow finished flat and the NASDAQ was up 910 of a percent for the day.

[B]

All just nudging up despite uncertainty in the Middle east, despite that inflation report getting mixed feedback. So the markets, the equity markets just continuing to plug on on. Well tomorrow on the show do come back because I'm going to be joined in Stud Studio by Peter Oey, the Chief Financial Officer of Grab. Now, Grab is based in Southeast Asia, which is a market a lot of the money movers that we've welcomed onto the show have been talking about as they point to perhaps an opportunity now to invest in emerging markets and diversifying away from just the United States. And Grab is an interesting one. It makes a super app. That means one app for messaging, rides, food delivery and payments. And we're going to discuss why super apps are catching on somewhat across the Pacific and what it actually looks like to build a product for a young mobile first and rapidly growing population. It's a conversation that you won't want to miss. That's it for today's Brew Markets Daily.

[A]

Brew Markets Daily is hosted by Anne Barry and produced by John Curto, Taka Beltif, Avni Laroya and Emily Miller. Our Technical Director is Uchena Waugh, Brittany Dotaku is our Audio engineer and the President of Morning Brew Inc. Is Devin Emery. If you enjoyed today's episode, please share with a friend. If you did not well kick sand

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well wake up tomorrow with the Morning Brew newsletter and tune in to Neil and Toby on a Morning Brew Daily. See you back here tomorrow. Same time, same place. Hopefully not having kicks and sand.

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