Danish media outlets have teamed up to push for copyright deals with Facebook (FB) and Alphabet (GOOGL). Reuters reports that the media outlets are pushing for payments for content posted on the two tech giants’ platforms.
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Representatives from 29 Danish media companies are poised to meet on Friday to discuss how they will proceed on the copyright deal push. Negotiations with the two tech giants are expected to commence after the meeting. (See Facebook stock chart on TipRanks)
“We believe that a collective management of our rights will make for the best and most fair value regarding big tech’s use of our content,” Stig Orskov, CEO JP/Politikens Hus, told Reuters.
A push to ink a copyright deal follows a change in the EU copyright directive. Sharing platforms such as Facebook and Google are required to install filters on their platform to prevent users from uploading copyrighted material. (See Alphabet stock chart on TipRanks)
Additionally, Facebook and Google also face negotiations on how much news they can post. The outlets are also believed to be pushing for payments for any of their news content posted on the sharing platforms.
Media outlets are taking a leaf out of the music industry’s book by pushing for payments for any of their work posted on other platforms. The outlets want similar deals to what musicians have signed with sharing platforms such as Spotify (SPOT) for their work.
Yesterday, Monness Crespi Hardt analyst Brian White reiterated a Buy rating on Facebook with a $460 price target, implying 29.34% upside potential to current levels. According to the analyst, the company is well-prepared for the war on big tech, backed by new innovations.
White commented, “Facebook has been busy expanding shopping experiences across the platform and introducing new ad innovations in recent weeks. Despite some expected headwinds this year, we anticipate Facebook will benefit from improved ad spending and capitalize on accelerated digital transformation with new initiatives.”
Consensus among analysts is a Strong Buy based on 29 Buys, 4 Holds, and 1 Sell. The average Facebook price target of $386.19 implies 8.59% upside potential to current levels.
According to TipRanks’ Hedge Fund Trading Activity tool, confidence in FB is currently Very Positive. The cumulative change in holdings across all 61 funds that were active in the last quarter was an increase of 5 million shares.
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