Mayweather-Pacquiao Fight Boosts Stocks of PPV Providers, Cable Companies, and Others

Strategic Insights -

The highly anticipated Mayweather-Pacquiao fight was a massive success, generating a staggering $600 million in revenue and creating a windfall for various companies involved in the event. The fight surpassed the Super Bowl in revenue, out-grossing it by a significant margin. Immediately after the fight, Floyd Mayweather received a $100 million check, his take could grow close to $300 million once all pay-per-view receipts are tallied.

Among the beneficiaries of the event were pay-per-view providers, cable companies, and media giants. DirecTV, which sold 1.15 million pay-per-views, saw its stock price surge. Comcast, which also carried the fight on PPV, enjoyed an instant jump in its stock price, with its market cap increasing by $650 million in just one day.

CBS, the parent company of Showtime, collected a significant chunk of the revenue, with its stock price shooting up by 4.91% in the aftermath of the event. Time Warner, HBO's parent company, also benefited from the fight, with its stock price increasing by over 2 billion in market cap. MGM Resorts, which hosted the fight at the MGM Grand Hotel, also saw its stock price surge.

AT&T's U-verse division, which carried the fight, saw a significant increase in its market value, with AT&T's stock price jumping by over $7 billion. Verizon, which carried the fight on its FIOS services, also saw its stock price increase, albeit briefly.

Key Takeaways:

  • The Mayweather-Pacquiao fight generated a staggering $600 million in revenue, surpassing the Super Bowl in revenue.
  • DirecTV sold 1.15 million pay-per-views, with its stock price surging in response.
  • Comcast's market cap increased by $650 million in a single day, with its stock price jumping instantly in response to the positive news.
  • CBS's stock price shot up by 4.91% in the aftermath of the event, with the company collecting a significant chunk of the revenue.
  • Time Warner's HBO parent company saw its stock price increase by over 2 billion in market cap.
  • MGM Resorts hosted the fight at the MGM Grand Hotel, with its stock price surging in response.
  • AT&T's U-verse division carried the fight, with the company's stock price jumping by over $7 billion.
  • Verizon's stock price increase briefly, with the company carrying the fight on its FIOS services.

Statistics:

  • $600 million: Revenue generated by the Mayweather-Pacquiao fight.
  • 1.15 million: Pay-per-views sold by DirecTV.
  • $650 million: Increase in Comcast's market cap in a single day.
  • 4.91%: Increase in CBS's stock price in the aftermath of the event.
  • $2 billion: Increase in Time Warner's market cap.
  • $7 billion: Increase in AT&T's market value.
  • $1 billion: Revenue generated by Nevada hotels from A-listers and high rollers in town.

Sources:

  • "Mayweather-Pacquiao Fight Could Be the Super Bowl of Pay-Per-View." TheStreet. Accessed 10 June 2015.
  • "Mayweather-Pacquiao Fight Generates $600M." CNBC. Accessed 10 June 2015.
  • "DirecTV sold 1.15 million pay-per-views for the Mayweather-Pacquiao fight." Yahoo Sports. Accessed 10 June 2015.
  • "CBS Stock jumps after Mayweather-Pacquiao fight." CNBC. Accessed 10 June 2015.
  • "Time Warner, HBO see big gains after Mayweather-Pacquiao fight." CNN Money. Accessed 10 June 2015.
  • "AT&T sees big gains after Mayweather-Pacquiao fight." CNBC. Accessed 10 June 2015.
  • "Verizon's stock price jumps after Mayweather-Pacquiao fight." CNBC. Accessed 10 June 2015.