Ross Gerber argues that several major entertainment companies are undervalued, but that they must adapt to changing audiences and technology to grow. His view is an investor’s judgment—not an independent finding of fair value. In an interview published by Jon Lafayette in TheWrap on October 5, 2026, Gerber discussed Netflix, Disney, Take-Two Interactive, Alphabet and NBCUniversal, while warning that higher interest rates can make major media deals harder to finance.
What Gerber means by “undervalued”
Gerber, CEO and president and chief investment officer of Gerber Kawasaki, sees potential in established entertainment businesses whose share prices, in his view, do not reflect their assets or prospects. TheWrap reported that Gerber Kawasaki had $4.78 billion in assets under management in 2026. That figure describes the firm, not the size of any position discussed here.
“Undervalued” is Gerber’s interpretation, not a verified measure of what a stock is worth. A share price can appear low relative to an investor’s assumptions and still fall if earnings, growth or market conditions disappoint. The company views below are his reported opinions, not a consensus rating or personalized investment advice.
Why he thinks higher rates can stall media deals
Gerber links rising interest rates to the cost and feasibility of large acquisitions: higher financing costs can change a deal’s projected economics. Speaking about the proposed Paramount–Warner Bros. Discovery transaction, he said, “I don’t see deals getting done right now. When rates move this quickly, it changes the numbers on every deal fairly substantially.”
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Gerber called taking on $80 billion of debt “insanity” and said the rate environment was “the worst thing that could have happened to them, with rates soaring.” He estimated that each 1-percentage-point increase in interest rates would add $800 million in costs. Those are his statements as reported on October 5, 2026, not an independently verified estimate of the transaction’s financing costs.
TheWrap separately reported a $110 billion valuation for the Paramount–WBD acquisition and a filed $41.4 billion debt offering while the deal awaited settlement approval. These are dated article-reported figures, not a current status update. Deal terms, financing and approval status can change; they should be checked against current company and regulatory disclosures before being treated as current.
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What Gerber sees in the named companies
| Company | Gerber’s view as reported October 5, 2026 | Important qualification |
|---|---|---|
| Netflix | A long-term, brand-name investment that may need a deal to reignite growth. | His valuation and the share-price figures were date-specific assumptions and snapshots, not current market data or a recommendation. |
| Disney | He sees a strong set of assets trading at a discount, while legacy cable weighs on investor sentiment. | This is his analysis; the report does not establish an objective discount or fair value. |
| Take-Two Interactive | He points to its franchises and the upcoming “Grand Theft Auto VI”; Gerber Kawasaki had recently increased its position. | His suggestion that Netflix could acquire Take-Two was speculation; no offer or confirmed transaction was reported. |
| Alphabet / Google / YouTube | He described Alphabet as one of his firm’s top positions, citing video, search and advertising, and sees YouTube as a destination for video attention. | This is his firm’s investment view, not a consensus rating or proof of future performance. |
| NBCUniversal / Comcast | He said NBCUniversal could look more interesting as an investment if separated from Comcast’s cable and broadband operations, particularly because of its theme parks. | The view is conditional on a corporate separation; the report does not say one has occurred. |
Netflix: an illustrative valuation, not a price target guarantee
In TheWrap’s October 5, 2026 snapshot, Netflix shares were below $70 and about 45% below their 52-week high. Gerber illustrated his valuation with roughly $4 in earnings per share multiplied by 25, which implies $100; he said he valued the shares closer to $120. Those inputs and conclusions are his assumptions, and the price snapshot is not live data. A valuation multiple depends on the earnings measure and growth outlook used, among other factors.
Gerber also said, “There’s very little downside in Netflix.” That categorical statement is his opinion, not an objective assessment that the stock cannot fall or that losses are unlikely.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsDisney: assets weighed against legacy cable
Gerber says investors are dissatisfied with Disney because its share price had not risen over the preceding five years, despite what he considers a strong collection of assets. He sees declining profitability and revenue in legacy cable as a drag on market sentiment and describes Disney as trading at a discount. The interview reports this framing but does not provide a valuation calculation that independently demonstrates the discount.
Take-Two: gaming IP and a speculative acquisition idea
Gerber points to Take-Two’s franchises, including the anticipated “Grand Theft Auto VI,” and its sports games as assets that could contribute to a larger entertainment strategy. He said a Netflix acquisition would need to add at least $5 billion in annual revenue. That is his stated threshold, not a confirmed Netflix plan or reported offer. TheWrap’s account says Gerber Kawasaki had recently increased its Take-Two position.
Alphabet and YouTube: attention, advertising and creators
Gerber favors Alphabet for its combination of video, search and advertising, calling it “a cash cow.” He also argues that YouTube is where video attention is moving and says traditional media companies are poaching creators. These are his views about the businesses and audience shifts; the interview does not independently measure migration in viewing or establish a consensus investment case.
NBCUniversal: a conditional case for separation
Gerber’s interest in NBCUniversal depends on a different corporate structure: he thinks it could be more attractive apart from Comcast’s cable and broadband operations, with theme parks among the assets he highlights. The point is conditional rather than a claim that the businesses have been separated.
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How AI, creators and gaming fit his growth thesis
Gerber argues that entertainment companies should adapt to new technology and audience habits rather than focus only on traditional media businesses. He says AI could make production cheaper, calling it a positive force for entertainment. He also points to creator content, YouTube and video games as areas drawing younger audiences.
The interview does not quantify potential AI savings or independently establish the scale of audience movement. For investors, the practical distinction is between an opportunity and a demonstrated financial result: lower production costs or access to new audiences would matter only if a company can turn them into durable earnings and growth.
What a personal investor should take from the commentary
Gerber’s comments offer a framework for questions to investigate, not a ready-made ranking of stocks to buy. For any media company, consider:
- Valuation assumptions: What earnings measure and growth rate support the price being considered? How sensitive is the conclusion to the assumed multiple?
- Debt and financing: How much borrowing would a merger require, and how would higher rates affect the economics?
- Growth strategy: Is the company building or acquiring businesses that can reach audiences through creators, gaming or newer video platforms?
- Legacy exposure: How much does the business depend on declining cable revenue, and can newer operations offset it?
- Evidence versus opinion: Separate reported financial results and filings from an investor’s forecast, speculation or valuation judgment.
Gerber’s company-specific figures and statements in this article come from TheWrap’s October 5, 2026 report, “Investor Ross Gerber on Undervalued Media Stocks.” They are a dated account of his views; share prices, financing conditions, corporate structures and deal status are not fixed.
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