Hulu’s Valuation & BofA’s $136B Risk

Happy Wednesday, and welcome back to Dry Powder. What to make of the potentially gaping hole—namely, $136 billion in unrealized losses—on Bank of America’s balance sheet? In today’s issue, I take a close look at the risks facing the nation’s third largest bank, and consider whether BofA’s true headache lies elsewhere.
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Happy Wednesday, and welcome back to Dry Powder.

What to make of the potentially gaping hole—namely, $136 billion in unrealized losses—on Bank of America’s balance sheet? In today’s issue, I take a close look at the risks facing the nation’s third largest bank, and consider whether BofA’s true headache lies elsewhere.

But first…

What Is Hulu Really Worth?

Starting today, November 1, Comcast and Disney can both trigger the option to commence the sale process of Comcast’s one-third stake in Hulu. The floor valuation for Hulu and its 48.3 million subscribers, as set in 2019, is...

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The BofA $136B Dynamite Stick

Bank of America has what appears to be $136 billion of unrealized losses on its balance sheet. Is this a material nightmare, or simply an explanation for why its market cap is half of the Bank of Dimon?

WILLIAM D. COHAN

A concern wafting through some corners of Wall Street, which has recently reached me, centers on Bank of America, our second largest bank, with some $3.5 trillion in assets—and in particular, what appears to be $136 billion of unrealized losses on its balance sheet. Those unrealized losses, which show up on the bank’s third-quarter 2023 financial statements, dated September 30, and filed with the Securities and Exchange Commission, represent more than 70 percent of...

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