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Ross Gerber argues that several major entertainment companies are undervalued, but he sees a need for them to adapt: use new technology, pursue growth through selective deals, and compete for audiences drawn to creators and video games. That is Gerber’s investment judgment, not an independent finding that these stocks are cheap or likely to rise.
In an October 5, 2026 interview with Jon Lafayette for TheWrap’s The Ledger, Gerber—CEO, president and chief investment officer of Gerber Kawasaki—discussed Netflix, Disney, Take-Two Interactive, Alphabet and NBCUniversal, as well as the effect of interest rates on media mergers. The prices, transaction status and forward-looking views below reflect that dated report, not live market data.
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What does Gerber mean by undervalued media stocks?
Gerber’s broad argument is that established entertainment companies may be worth more than investors currently recognize, particularly if they can adjust to changing technology and viewing habits. He points to valuable brands, intellectual property and businesses such as video, gaming and theme parks. But the interview presents his perspective; it does not independently calculate fair value for the companies or establish that their shares are mispriced.
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TheWrap reported that Gerber Kawasaki had $4.78 billion in assets under management in 2026. That figure is attributed to the publication and is not a measure of the performance or risk of the specific positions discussed.
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Why does Gerber think high interest rates can slow media mergers?
Large acquisitions can depend on substantial borrowing, so a quick rise in financing costs can change a proposed deal’s expected cost and returns. Gerber said of the proposed Paramount–Warner Bros. Discovery transaction: “I don’t see deals getting done right now. When rates move this quickly, it changes the numbers on every deal fairly substantially.”
He called the prospect of taking on $80 billion of debt “insanity” and said higher rates were “the worst thing that could have happened to them.” Gerber also estimated that each 1% increase in rates would add $800 million in costs. These are his October 2026 comments and estimate, as reported by TheWrap—not an independent financing analysis.
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TheWrap separately described the acquisition as valued at $110 billion and reported a $41.4 billion debt offering filed while the transaction awaited settlement approval. Those were the article’s reported figures and status on October 5, 2026; they should not be read as confirmation of the transaction’s present status or financing.
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Netflix: a brand-name holding that needs another growth engine
Gerber described Netflix as a long-term brand-name investment but said it needs a deal to reignite growth. In TheWrap’s October 5, 2026 market snapshot, Netflix shares were below $70 and about 45% below their 52-week high. Those are dated prices, not current quotes.
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His illustrative calculation assumed about $4 in earnings per share and a 25-times earnings multiple, which implies $100 per share. Gerber said he valued it closer to $120 and added, “There’s very little downside in Netflix.” The figures depend on his assumptions; the categorical downside statement is his opinion, not an objective assessment of investment risk or a guarantee.
Disney: strong assets, weighed down by legacy cable
Gerber said investors were frustrated that Disney’s share price had not risen for five years, despite what he considers a strong collection of assets. He argued that declining revenue and profitability in legacy cable weigh on sentiment and that Disney trades at a discount. These are his explanations for the market’s view, not a verified valuation conclusion.
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- No credit card is required to redeem a gift code.
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- Redemption: Online
Take-Two Interactive: gaming franchises and a hypothetical Netflix deal
Gerber said Gerber Kawasaki had recently increased its position in Take-Two, pointing to the upcoming Grand Theft Auto VI and the company’s franchises. He speculated that Netflix might acquire Take-Two once interest rates settle, but TheWrap reported no offer or confirmed transaction.
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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteGerber said an acquisition target would need to add at least $5 billion in annual revenue. He argued Take-Two could bring gaming intellectual property and sports games. The revenue threshold is his stated criterion, not a reported valuation of Take-Two or evidence that Netflix is pursuing a deal.
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Alphabet and YouTube: video, search and advertising
Gerber called Alphabet one of his firm’s top positions, citing video, search and advertising. He said, “How do you not own Google? They are a cash cow. It’s really nice.” He sees YouTube as a destination where video attention is moving and said traditional media companies are poaching creators. This is his investment view, not a consensus rating or independent measure of audience migration.
NBCUniversal: a conditional case for separation
Gerber said NBCUniversal could look more interesting as an investment if separated from Comcast’s cable and broadband operations, particularly because of its theme parks. His case depends on a possible corporate-structure change; it is not a report that a separation is planned or underway.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How do AI, creators and gaming fit into his thesis?
Gerber argues that entertainment companies should respond to new technology and shifting audience habits instead of relying only on established formats. He said AI could make content production cheaper: “AI is going to revolutionize many industries including entertainment, and in a good way,” and “I think the entertainment people are scared of the wrong thing, because with AI, you’ll be able to make content a lot cheaper.”
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The interview does not quantify potential savings or demonstrate how much viewing is moving to creator content or games. Gerber’s point is strategic: lower production costs could change the economics of making content, while YouTube creators and gaming compete for the attention of younger audiences. Whether a particular company can turn those shifts into durable earnings is a separate question from whether the industry is changing.
How should investors read these comments?
Gerber’s remarks are useful as a map of one investor’s thesis, not as a buy list. The companies he discussed have different exposures: Netflix’s growth prospects, Disney’s legacy cable pressure, Take-Two’s game franchises, Alphabet’s advertising and video businesses, and NBCUniversal’s position within Comcast. His proposed deal logic also depends on financing conditions and on acquisitions actually creating value.
Quick Recap
- Separate opinion from evidence: “Undervalued,” “very little downside” and the potential for cheaper production are Gerber’s judgments or expectations.
- Check the assumptions behind a valuation: For Netflix, the $100 illustration follows from his roughly $4 earnings-per-share assumption and 25-times multiple; changing either input changes the implied value.
- Distinguish speculation from a transaction: Gerber’s Netflix–Take-Two idea was not accompanied by a reported offer.
- Refresh dated facts: The share-price snapshot, acquisition status and financing figures refer to TheWrap’s October 5, 2026 report, not necessarily to conditions today.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
