Netflix co-CEO Ted Sarandos revealed why the world’s biggest streaming service doesn’t offer live sports.

“We’ve not seen a profit path to renting big sports,” Sarandos said on Tuesday at the UBS Global TMT Conference in New York City. 

While noting that Netflix isn’t completely closing the door on a favorable opportunity, Sarandos characterized live sports as “dramatically expensive” and essentially a “loss leader.”

• The company scored $7.9 billion in third-quarter revenue and $1.4 billion in net income.
• While Netflix has been profitable every quarter this year, other major streaming networks — such as Disney’s bundle of Disney+, ESPN+, and Hulu — have yet to turn a profit. 
• Netflix had 223 million subscribers as of October.

“We’re not anti-sports,” said Sarandos. “We’re just pro-profit.”

Window Shopping

Sarandos’ comments cut against previous reporting that Netflix had looked to acquire rights to tennis tours as well as purchasing the World Surf League. It also looked into nabbing Formula 1 rights before ESPN signed a three-year contract for $75 million to $90 million annually.

Netflix confirmed in May that it will renew its hit F1 series “Drive to Survive” for a fifth and sixth season. The streamer is also working with “Drive to Survive” producer Box to Box on a series covering top tennis players and the Grand Slam events.

A Major League Baseball team could change hands before the next season starts.

MLB commissioner Rob Manfred floated the possibility that the Los Angeles Angels could be sold by March 30 — when the 2023 season begins — saying, “My understanding is that the club would like to have the sale resolved by Opening Day.”

• Owner Arte Moreno said in August that the team would explore strategic options, including a sale, after a land deal with Anaheim collapsed under corruption charges.
• Moreno had agreed to purchase the team’s stadium and surrounding land for $320 million.
• The city could require Moreno or a future owner to cover around $300 million in repairs, per a previous agreement.

The Angels were valued at $2.2 billion by Forbes in March, ninth in MLB.

Orioles, A’s in Flux

Manfred also provided commentary regarding other teams, stating that “as long as I have this job, I think you can count on the fact that the Orioles are going to be in Baltimore.”

He was far less certain about the Oakland A’s, alluding to a contractual trigger in the league’s collective bargaining agreement that denies them revenue sharing money without a new stadium deal by Jan. 15, 2024. 

Manfred reiterated that the league would waive its relocation fee — which could reach as much as $1 billion — if the team leaves Oakland.

Meanwhile, the Kansas City Royals will hold their first public meeting on Tuesday for a proposed $2 billion ballpark and surrounding entertainment district.

Activision Blizzard’s “Call of Duty” franchise will finally be available to Nintendo consumers. 

Microsoft has agreed to a 10-year deal with Nintendo to bring the popular shooter franchise to Nintendo gaming platforms. 

A deal will be finalized depending on Microsoft’s acquisition of Activision Blizzard. 

In January, Microsoft agreed to acquire the video game holding company for $68.7 billion, but the pending transaction is facing regulatory scrutiny in the U.S., Australia, and the U.K. 

• The deal can be extended after its initial 10-year period.
• The latest installment in the franchise — “Call of Duty: Modern Warfare II” — passed $1 billion in sales in just 10 days after its release on Oct. 28.

Microsoft has also vowed to make “Call of Duty” available for PCs via distribution platform Steam at the same time as its release on Xbox. A similar deal is on the table for Sony, but the Japanese tech giant has yet to accept the offer, as it opposes Microsoft’s takeover of Activision.

Change of Forecast 

Nintendo slashed its full-year sales forecast for the Switch — its best-selling home gaming console ever — following the release of its latest earnings report in November. The company reported $4.5 billion in sales for the six months ending Sept. 30, a 5% increase year-over-year.

Despite the growth, Nintendo has been hampered by the ongoing chip shortage.

Switch sales are projected to reach 19 million units by the end of March 2023, down from a previous projection of 21 million.

The largest sporting goods retailer in China is considering taking one of its brands public. 

Anta Sports — a brand often called “the Nike of China” — is reportedly weighing an initial public offering of Amer Sports, the owner of sportswear and equipment brands including tennis racket maker Wilson and Louisville Slugger. 

• In 2018, Anta purchased Amer in a deal valued at $5.2 billion.
• Anta is in preliminary talks with investment banks to facilitate a potential IPO.
• Amer could raise at least $1 billion in the transaction.
• It could go public as early as 2023. 

Lululemon founder Chip Wilson — who is valued at $6.1 billion and owns a 20% stake in Amer worth at least $1.2 billion — vowed to help Amer expand its sales through direct-to-consumer channels. Anta is attempting to make Amer a more globally recognized brand through a revamped focus on product and design. 

Amer has a group of investors that also includes Tencent and private equity firm FountainVest.  

Financial Status 

Anta generated a record $3.7 billion in revenue for the six months ending June 30, a 14% increase year-over-year. Its Amer segment posted $1.4 billion in revenue during the six months, up 21% compared to the same period last year.

Amer’s growth was attributed to strong sales outside China and continued development in the country — despite its COVID-zero strategy on consumer spending.