Jim Cramer at CNBC says Google Inc (NASDAQ:GOOG) might see a major stock price uptrend following the report that the search engine giant is looking forward to bidding for the rights of the popular “NFL Sunday Ticket” package.
Presently, DIRECTV (NASDAQ:DTV) airs the NFL Sunday Ticket package in which a user can watch out-of-market regular-season NFL games. However, after the 2014 season ends, the four-year contract of the company with the league will come to an end.
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Deal will change perceptions about Google
“The NFL is the most powerful brand in sports, maybe one of the most powerful brands in the world. … This would be huge for Google and they can write the check,” Cramer said on “Squawk on the Street” on Wednesday. He also said that an overview on Google Inc (NASDAQ:GOOG) will change drastically if the company strikes the deal, and added that he would buy stock up to $1000 “if they paid anything reasonable.”
Cramer also said that he will drop DirecTV “tomorrow” if Google clinched the deal with NFL, and said, “This package really put DirecTV on the map. This is the story to follow.”
Google may initiate a pay model
According to Cramer this deal can be the biggest game changer, and cable companies will have to “outbid Larry Page.”
Creamer feels the deal may be a turning point for Google Inc (NASDAQ:GOOG) where the company will initiate a charge from customers for using its services. He believes that a pay model is the only way to generate revenue from the product.
“People will pay for football. We know that they will pay for football,” he said.
Deal will be a step ahead of conventional cable
Analysts foresee that striking a deal with NFL will turn Google Inc (NASDAQ:GOOG) into a major platform for sports viewers. It can enhance the demand for services that are a step further to that of conventional cable, and can persuade users to sign up for broadband according to Janney Capital Markets analyst Tony Wible.
Wible also believes that with Netflix and Hulu already offering internet services to the users, consumers will start to create a true “a la carte” package where they can select definite packages and pay for it.
Roger Goodell, NFL Commissioner along with some other executives of the league invited Google Inc (NASDAQ:GOOG), Facebook Inc (NASDAQ:FB) and various other important Silicon Valley companies to improve their content by considering NFL coverage, according to Alex Reithmiller, NFL spokesman.