An anonymous reader quotes a report from Ars Technica: AT&T is planning thousands of layoffs at HBO, Warner Bros., and other parts of WarnerMedia as part of a plan to cut costs by up to 20 percent, The Wall Street Journal reported yesterday. WarnerMedia is what used to be called Time Warner Inc. before AT&T purchased the entertainment company in 2018. Layoffs and cost cuts are nothing new at AT&T in general, including at WarnerMedia. But WarnerMedia has taken a particularly big hit since the pandemic began. AT&T laid off about 600 people from WarnerMedia in August, a prelude to the new cuts revealed yesterday. The Journal wrote: "AT&T's WarnerMedia is restructuring its workforce as it seeks to reduce costs by as much as 20 percent as the coronavirus pandemic drains income from movie tickets, cable subscriptions and television ads, according to people familiar with the matter. The overhaul, which is expected to begin in the coming weeks, would result in thousands of layoffs across Warner Bros. studios and TV channels like HBO, TBS and TNT, the people said."

WarnerMedia had nearly 30,000 employees earlier this year. A WarnerMedia spokesperson told Ars that "we are not discussing or confirming any speculative numbers" regarding how many jobs will be cut. The job reductions are part of the restructuring that was announced in August, the spokesperson also said. "Like the rest of the entertainment industry, we have not been immune to the significant impact of the pandemic. That includes an acceleration in shifting consumer behavior, especially in the way content is being viewed," WarnerMedia said. "We shared with our employees recently that the organization will be restructured to respond to those changes and prioritize growth opportunities, with an emphasis on direct-to-consumer. We are in the midst of that process and it will involve increased investments in priority areas and, unfortunately, reductions in others."

IBM announced this morning that the company would be spinning off some of its lower-margin lines of business into a new company and focusing on higher-margin cloud services. Ars Technica reports: During an investor call, CEO Arvind Krishna acknowledged that the move was a "significant shift" in how IBM will work, but he positioned it as the latest in a decades-long series of strategic divestments. "We divested networking back in the '90s, we divested PCs back in the 2000s, we divested semiconductors about five years ago because all of them didn't necessarily play into the integrated value proposition," he said. Krishna became CEO in April 2020, replacing former CEO Ginni Rometty (who is now IBM's executive chairman), but the spin-off is the capstone of a multi-year effort to apply some kind of focus to the company's sprawling business model.

The new spin-off doesn't have a formal name yet and is referred to as "NewCo" in IBM's marketing and investor relations material. Under the spin-off plan, the press release claims IBM "will focus on its open hybrid cloud platform, which represents a $1 trillion market opportunity," while NewCo "will immediately be the world's leading managed infrastructure services provider." (This is because NewCo will start life owning the entirety of IBM Global Technology Services' existing managed infrastructure clients, which means about 4,600 accounts, including about 75 percent of the Fortune 100.)
See also: Cringely Predicts IBM 'Disappears Into Red Hat'

An anonymous reader quotes a report from Ars Technica: AT&T is reportedly moving ahead with its plan to sell DirecTV despite receiving bids that value the satellite division at less than one-third of the price AT&T paid for it. AT&T bought DirecTV for $49 billion in 2015 and has lost seven million TV subscribers in the last two years. In late August, news broke that AT&T is trying to sell DirecTV to private-equity investors and that a deal could come in at less than $20 billion. The New York Post yesterday provided an update on the sale process, writing that AT&T is pressing ahead with an auction even though it is "shaping up to be a fire sale." The sale process is being handled for AT&T by Goldman Sachs.

"Opening bids from a coterie of buyout firms came in at around 3.5 times DirecTV's roughly $4.5 billion of EBITDA, implying a valuation at around $15.75 billion, according to a source close to the process," the Post article said. Despite the low first-round bids, AT&T "last week invited a handful of suitors into the second round of an auction of the struggling satellite-TV broadcaster," the Post wrote. Private-equity firms "are looking to milk the shrinking company for cash as DirecTV's subscribers steadily flee to lower-priced streaming-video services like Netflix," the Post wrote. AT&T could retain a minority stake in DirecTV after a sale.

"One of America's largest internet providers is uploading its oldest broadband technology into the sunset," reports USA Today, complaining that AT&T will be leaving some future customers without any choices for wired broadband. "We're beginning to phase out outdated services like DSL and new orders for the service will no longer be supported after October 1," a corporate statement sent beforehand read. "Current DSL customers will be able to continue their existing service or where possible upgrade to our 100% fiber network."

DSL — a broadband connection delivered over old copper telephone lines — is no prize at AT&T. The company doesn't sell downloads faster than 6 Mbps, less than a fourth of the 25-Mbps minimum definition of the Federal Communications Commission and further cramps their utility with stringent data caps of just 150 gigabytes. But the technology that provided many people (myself included) their first real broadband still works to provide an always-on connection and far more capacity than satellite connectivity.

"I'm really not surprised that AT&T is phasing out DSL, as it's an obsolete technology," emailed one soon-be-stranded DSL subscriber, retiree Jack Mangold of Collettsville, North Carolina. "I am, however, very disappointed that AT&T has no interest in replacing DSL in rural areas with some other technology." AT&T reported 653,000 total DSL connections at the end of its second quarter, compared to 14.48 million on its fiber-optic and hybrid-fiber services. The latter, sold as "AT&T Internet," combines fiber trunk lines with DSL last-mile connections for faster speeds.

The company has seen DSL subscribers steadily dwindle. Bruce Leichtman, president and principal analyst at the research firm Leichtman Research Group, wrote in an email that two years ago, AT&T had just over a million DSL customers. "AT&T basically gave up on fighting cable over a third of its territory" said Dave Burstein, editor of the trade publication Fast Net News.

An anonymous reader quotes a report from Ars Technica: T-Mobile US CEO Mike Sievert yesterday fired back at AT&T and Verizon, saying the carriers' complaints about T-Mobile obtaining more spectrum licenses show that they are afraid of competition. "The duopolists are scrambling to block this new competition any way they can... Suddenly in the unfamiliar position of not having a dominant stranglehold on the wireless market, and preferring not to meet the competitive challenge in the marketplace, AT&T and Verizon are urging the FCC to slow T-Mobile down and choke off our ability to compete fairly for added radio spectrum," Sievert wrote in a blog post. As we wrote Monday, Verizon and AT&T have urged the Federal Communications Commission to impose limits on T-Mobile's ability to obtain more spectrum licenses. AT&T complained that T-Mobile's acquisition of Sprint allowed it to amass "an unprecedented concentration of spectrum."

Verizon has the most spectrum of any US carrier "by far" but "has the anti-competitive instincts and sheer audacity to complain that a much smaller T-Mobile has too much," Sievert wrote. "After holding massive spectrum advantages over T-Mobile and others for decades, Verizon and AT&T just can't stand the idea of anyone else being ahead of them or having a fair shot in an auction where they plan to use their financial might to do what they have always done -- dominate." Sievert also wrote that the 600MHz spectrum T-Mobile is leasing was previously controlled by AT&T. "AT&T had won at auction the spectrum that Columbia Capital is now leasing to T-Mobile and -- guess what -- AT&T decided it didn't want it and sold it to Columbia," Sievert wrote. "Verizon, the ringleader in opposing this lease, never bothered to even show up and bid for any 600MHz spectrum. In short, we have AT&T and Verizon seeking to block T-Mobile from using spectrum that AT&T decided to jettison, and Verizon had no interest in pursuing. Now both companies are seeking to block T-Mobile from putting this spectrum to use for the benefit of American consumers."

An anonymous reader quotes a report from Ars Technica: AT&T and Verizon are worried about T-Mobile's vast spectrum holdings and have asked the Federal Communications Commission to impose limits on the carrier's ability to obtain more spectrum licenses. Verizon kicked things off in August when it petitioned the FCC to reconsider its acceptance of a new lease that would give T-Mobile another 10MHz to 30MHz of spectrum in the 600MHz band in 204 counties. AT&T followed that up on Friday with a filing that supports many of the points made in Verizon's petition. T-Mobile was once the smallest of four national carriers and complained that it didn't have enough low-band spectrum to match AT&T and Verizon's superior coverage. But T-Mobile surged past Sprint in recent years and then bought the company, making T-Mobile one of three big nationwide carriers along with AT&T and Verizon. T-Mobile also bolstered its low-band spectrum holdings by dominating a 600MHz auction in 2017.

"The combination of Sprint and T-Mobile has resulted in an unprecedented concentration of spectrum in the hands of one carrier," AT&T wrote in its filing to the FCC on Friday. "In fact, the combined company exceeds the Commission's spectrum screen, often by a wide margin, in Cellular Market Areas representing 82 percent of the US population, including all major markets." T-Mobile's large spectrum holdings demand "changes in how the Commission addresses additional acquisitions of spectrum by that carrier," AT&T said in another part of the filing. AT&T also posted a blog on the topic, saying that "Additional spectrum leases with Dish will cause T-Mobile to exceed the 250MHz screen by as much as 136MHz." Officially, AT&T said it "takes no position on whether T-Mobile's lease applications were properly accepted by the FCC," but the company said that the FCC "should provide an explanation of why it permitted T-Mobile to further exceed the spectrum screen." "The Commission's failure to issue a written order in a transaction allowing spectrum aggregation in excess of the screen to this degree is highly unusual... Moreover, without a written order explaining its analysis, there is no evidence that the Commission has carefully attempted to evaluate the potential for competitive harm," AT&T wrote.

AT&T is considering offering wireless phone plans partially subsidized by advertising as soon as a year from now, Chief Executive John Stankey said in an interview on Tuesday. From a report: The consideration, which has not been previously disclosed, underscores AT&T's commitment to the advertising business as the U.S. phone carrier reviews its portfolio to identify assets to sell in order to reduce its debt load. AT&T is considering selling its advertising-technology unit Xandr, sources familiar with the matter have told Reuters. "I believe there's a segment of our customer base where given a choice, they would take some load of advertising for a $5 or $10 reduction in their mobile bill," Stankey said. Various companies including Amazon.com, Virgin Mobile USA and Sprint's Boost Mobile have tested advertising supported phone services since the early 2000s but they have not caught on. AT&T is hoping that better advertising targeting could revive the idea.

An anonymous reader quotes a report from Ars Technica: AT&T smartphone users who see their network indicators switch from "4G" to "5G" shouldn't necessarily expect that they're about to get faster speeds. In PCMag's annual mobile-network testing, released today, 5G phones connected to AT&T got slower speeds than 4G phones in 21 out of 22 cities. PCMag concluded that "AT&T 5G right now appears to be essentially worthless," though AT&T's average download speed of 103.1Mbps was nearly as good as Verizon's thanks to a strong 4G performance. Of course, AT&T 5G should be faster than 4G in the long run -- this isn't another case of AT&T misleadingly labeling its 4G network as a type of 5G. Instead, the disappointing result on PCMag's test has to do with how today's 5G phones work and with how AT&T allocates spectrum.

The counterintuitive result doesn't reveal much about the actual differences between 4G and 5G technology. Instead, it's reflective of how AT&T has used its spectrum to deploy 5G so far. As PCMag explained, "AT&T's 5G slices off a narrow bit of the old 850MHz cellular band and assigns it to 5G, to give phones a valid 5G icon without increasing performance. And because of the way current 5G phones work, it often reduces performance. AT&T's 4G network benefits from the aggregation of channels from different frequencies. "The most recent phones are able to assemble up to seven of them -- that's called seven-carrier aggregation, and it's why AT&T won [the PCMag tests] last year," the article said. 5G phones can't handle that yet, PCMag analyst Sascha Segan wrote: "But 5G phones can't add as many 4G channels to a 5G channel. So if they're in 5G mode, they're giving up 4G channels so they can use that extremely narrow, often 5MHz 5G channel, and the result is slower performance: faux G. For AT&T, using a 5G phone in testing was often a step backward from our 4G-only phone."

An anonymous reader quotes a report from Bloomberg: AT&T is once again looking to sell its DirecTV unit, a business that has lost billions of dollars in value since the wireless carrier acquired it in 2015. The sooner it waves goodbye, the better. The question is, who wants it? DirecTV has faded into the background at AT&T, a company now entirely focused on competing in 5G wireless connectivity and online television. Any DirecTV user can attest to how the service has been neglected in recent years, and the business might be forgotten by investors if it weren't for the headline-grabbing subscriber losses it's mounted each quarter.

AT&T, which also owns the U-Verse brand, has lost about 6 million traditional pay-TV customers overall in just the last two years. The Covid-19 pandemic is causing cord-cutting to accelerate as consumers look to save money by switching to streaming-video services such as Netflix and AT&T's own HBO Max. So while AT&T paid $49 billion when it bought DirecTV, it'd be lucky to fetch even half that now. One analyst, John Butler of Bloomberg Intelligence, estimates a potential sale price of just $20 billion. Some may be wondering, what on earth would any buyer want with a satellite-TV business anyway? The answer is cash. DirecTV still throws off quite a bit of it, which explains why private equity firms including Apollo Global Management Inc. and Platinum Equity are said to be taking a look. Financial suitors want businesses that generate lots of cash because they can support dividends and the debt load needed to take them private -- although DirecTV's ability to do so is certainly diminishing.

AT&T's WarnerMedia division is planning to lay off hundreds of employees in AT&T's latest cost-cutting move. Ars Technica reports: "Warner Bros. is expected to commence layoffs of around 650 people starting Monday, according to people familiar with the matter, while HBO is seen shedding between 150 and 175 staffers. A WarnerMedia spokesman declined to comment," Variety reported yesterday. The numbers quoted in Variety may be a bit too high. A source with knowledge of the AT&T layoffs told Ars that the real number is about 600 jobs across all of WarnerMedia, which includes Warner Bros., HBO, and Turner. The layoffs come days after WarnerMedia CEO Jason Kilar announced a shakeup including the departure of three executives and an increased focus on AT&T's new HBO Max streaming service. Kilar detailed the changes in an internal memo published by CNBC on Friday.

In its Q2 2020 earnings report, AT&T said that HBO revenue was "$1.6 billion, down 5.2 percent year over year, reflecting a decrease in subscription revenues and content and other revenues." HBO operating expenses were "$1.5 billion, up 32.5 percent year over year, primarily due to higher programming costs and expenses related to HBO Max." HBO operating income was $113 million, down 80.3 percent. Warner Bros. revenue in Q2 was $3.3 billion, down 3.9 percent year over year partly because of "the postponement of theatrical releases due to closure of movie theaters," AT&T said. Warner Bros. operating income rose 43.9 percent to $633 million, however, as the unit's operating expenses declined 11.1 percent to $2.6 billion "primarily due to the production hiatus and lower marketing expenses."

In T-Mobile's Q2 2020 earnings call today, the company says that it has surpassed AT&T in total branded customer count to become the second biggest carrier in the U.S., trailing only Verizon. PhoneDog reports: In Q2 2020, [which is the first quarter that includes Sprint following the merger of the two carriers] T-Mobile added 1.245 million customers, giving it a total subscriber count of 98.3 million. To compare, AT&T finished Q2 2020 with 93 million postpaid and prepaid customers.

T-Mo also shared some good news regarding its 5G network today. The magenta carrier's 2.5GHz mid-band 5G is now live in Atlanta, Dallas, and Washington DC. That 2.5GHz 5G coverage is also live in parts of Chicago, Houston, Los Angeles, New York City, and Philadelphia. T-Mo touts that its average download speeds on 2.5GHz 5G is around 300Mbps with peak speeds of 1Gbps.

T-Mobile is preparing to make support for Voice over LTE a requirement for all new devices, according to a report Thursday. The move was reportedly detailed in internal T-Mobile documents obtained by Android Police. From a report: The requirement won't mean much for users at first, but as of January 2021, "T-Mobile will require all devices connecting to our nationwide 4G LTE and 5G networks to be VoLTE compatible." That means that older-gen devices that don't include support for the IP-based voice network won't be able to use T-Mobile at all. Further reading: AT&T Tells Customers To Upgrade Their Phones To Avoid Losing Voice Calls -- Two Years Early.

Having launched preliminary 5G services using millimeter wave hardware in late 2018, AT&T has technically been operating a 5G network for a year and a half -- but between the "5G+" network's few connection points and extremely limited hardware support, most people in the U.S. couldn't actually use it. Today, AT&T says its low band 5G network is officially available nationwide, reaching a potential 205 million customers across 395 coverage markets. From a report: The carrier is also making 5G service available to a wider range of customers at no additional charge. On a positive note, AT&T is now the second U.S. carrier with a nationwide 5G network, joining T-Mobile, which launched a similarly large offering in December 2019 using long distance but slow low band towers. But T-Mobile's low band 5G peaks at speeds around 225Mbps, nowhere near the 2Gbps peaks seen in Verizon's all but unusably small 5G network, while promising only a 20% improvement over 4G speeds on average. AT&T's low band 5G network is expected to deliver comparable performance but is using a technology called DSS to dynamically split prior 4G spectrum between 4G and 5G phones as user demand fluctuates.

There are countless stories of carriers trying to convince people they need a new phone, but this latest example from AT&T is especially worrying. From a report: Through an email going out to thousands of customers, AT&T is warning that those users need to upgrade their phones to avoid losing the ability to make voice calls. The problem? That won't happen for nearly two years. An email is being sent out to customers with a statement in bold that "your device is not compatible with the new network." This is referring to AT&T's plan to shut down its 3G network, still used by some devices for voice calls and data. When that happens, only phones that support VoLTE (voice over LTE) will be allowed on the network. AT&T's email lets customers know that their current phone isn't compatible with VoLTE, but without explaining that explicitly or, more importantly, mentioning that their phone will continue to work until February 2022!

An anonymous reader quotes a report from Ars Technica: Google Fiber's wireline broadband is expanding to a new city for the first time in several years as part of a public-private partnership to build an open-access network that any ISP can use to offer service. The new network will be in West Des Moines, Iowa. Google Fiber "paused" plans to expand to new cities in October 2016 amid lawsuits filed by incumbent ISPs and construction problems that eventually led to the Alphabet-owned ISP's complete exit from Louisville. But in West Des Moines, Google Fiber will rely on the city to build a network of fiber conduits. "Municipalities like West Des Moines excel at building and maintaining infrastructure. At digging and laying pipes under the roads, restoring and preserving the sidewalks and green spaces, reducing traffic congestion, and lowering construction disruption," Google Fiber said in an announcement yesterday.

The West Des Moines government's announcement said that "once the City installs conduit in the public right of way, broadband providers will pay a license fee to install their fiber in the City's conduit. Google Fiber will be the first tenant in the network." A conduit-license agreement "calls for Google Fiber to cover a portion of the construction cost to build conduit... through their monthly lease payments." "On a monthly basis, Google Fiber would pay the city $2.25 for each household that connects to the network," according to the Des Moines Register. Google Fiber would pay the city a minimum of $4.5 million over 20 years. Construction is expected to begin this fall and be completed in about two and a half years, the city said. While Google Fiber is slated to be the first tenant offering fiber service over the West Des Moines network, the city is hoping to spur broadband competition by letting other ISPs install their own fiber in the conduits. Current ISPs in West Des Moines include CenturyLink and Mediacom. "Every home and business in West Des Moines is eligible for a free connection point from their property to the municipal fiber conduit," the city said. "The City will be installing these connections and will contact every business and resident in the near future to ensure everyone has the opportunity to participate." The city also said it aims to make high-speed broadband available to "all residents, regardless of their means."

"West Des Moines plans to invest nearly $40 million" in the project, the Des Moines Register wrote, adding that city officials intend to "solicit bids for laying the underground conduit that would house the fiber-optic cables."

According to a new report from The Information, Microsoft is interested in bidding on Warner Bros. Interactive Entertainment, which is currently a division of AT&T. From a report: Warner Bros. Interactive Entertainment, or WB Games, is known for publishing the "Batman: Arkham" series, "Middle-Earth: Shadow of Mordor," many "Lego" and "Harry Potter" games, "Mortal Kombat," and "The Witcher 3: Wild Hunt." The unit consists of game-development studios in the U.S., Canada and the U.K. AT&T acquired the gaming business as part of the 2018 buyout of Time Warner assets. This deal and the 2014 acquisition of DirecTV increased AT&T's debt and the company has been looking to ways to cut costs and unload assets.

An anonymous reader quotes a report from PCWorld: Major Internet service providers are scheduled to end their quarantine benefits soon, once again subjecting Americans to data caps and removing protections if they are unable to pay their bills. The FCC's Keep Americans Connected Pledge is set to expire on June 30. Companies initially agreed to the pledge and rushed to add benefits. ISPs like CenturyLink, T-Mobile, Verizon, and many others said they would not discontinue service or charge late fees for those unable to pay because of the coronavirus. They also agreed to open their Wi-Fi access points for free. So far, the FCC has not publicly said that it would extend the pledge.

In some ways, ISPs face the same decision as governors in Florida and Texas: end their benefits, which encouraged users to stay home, or continue them for an indeterminate period of time. This could be the last weekend of unlimited data for Comcast Xfinity subscribers and other major ISPs. For many of those who are out of work, ISPs could begin demanding payment for outstanding broadband bills on June 30. Consumers who have been riding out the quarantine by streaming may also find that their unlimited data expires June 30. On that day AT&T, Comcast Xfinity, Mediacom, and T-Mobile are scheduled to resume normal service, and once again impose data caps. Some ISPs, like Cox, have already terminated some benefits, as its temporary unlimited data program expired in May.

The Verge reports that WarnerMedia is getting rid of the HBO Go app in an attempt to reduce some of the confusion about which app is for which purpose. From the report: HBO Max is AT&T's new streaming service that lets you access the entire HBO library plus additional content like Cartoon Network shows and the Studio Ghibli movies. You can subscribe to HBO Max directly for a $14.99 monthly fee, but it's also offered for free from many cable providers if you subscribe to HBO, and it's free as part of some AT&T wireless, internet, or TV plans. A key thing to know is that HBO Max is really an expanded and rebranded version of HBO Now, the company's previous streaming-only service. On most platforms, like Apple TV, the HBO Now app was directly updated to become HBO Max.

Before HBO Max existed, cable subscribers could stream HBO shows using an app called HBO Go. WarnerMedia will be getting rid of that app (or "sunsetting" it, in WarnerMedia's language) from "primary platforms" as of July 31st. If you previously relied on HBO Go, many cable providers will already let you log in to HBO Max. You can see that full list here. That "primary platforms" language is important, because WarnerMedia still hasn't struck deals to bring HBO Max to Roku or Amazon streaming devices. On those platforms, WarnerMedia is not upgrading the HBO Now app to become HBO Max. Instead, it's rebranding to simply be "HBO," where it will still cost $14.99, even though you'll only be able to watch HBO content on it and not the expanded HBO Max catalog. This branding switch will be happening over the coming months, according to WarnerMedia.

HBO Max, AT&T's big bet on the future of streaming, will be excused from AT&T's mobile data caps, while competing services like Netflix and Disney Plus will use up your data. From a report: That's the follow-up from a Vergecast conversation with Tony Goncalves, the AT&T executive in charge of HBO Max. Asked whether HBO Max would hit the cap, Goncalves said his team "had the conversation" but didn't have the answer. AT&T later confirmed to The Verge that HBO Max will be excused from the company's traditional data caps and the soft data caps on unlimited plans. According to an AT&T executive familiar with the matter, HBO Max is using AT&T's "sponsored data" system, which technically allows any company to pay to excuse its services from data caps. But since AT&T owns HBO Max, it's just paying itself: the data fee shows up on the HBO Max books as an expense and on the AT&T Mobility books as revenue. For AT&T as a whole, it zeroes out. Compare that to a competitor like Netflix, which could theoretically pay AT&T for sponsored data, but it would be a pure cost.

Cryptocurrency investor Michael Terpin sued AT&T over a SIM card attack in 2018 that lost him control over $23 million.

Now Bloomberg reports that he's suing the "15-year-old hacker and his crew of 'evil computer geniuses'" behind the attack. (Alternate source) Terpin, the founder and chief executive officer of blockchain advisory firm Transform Group, is suing Ellis Pinsky, now 18, for $71 million under a federal racketeering law that allows for triple damages. "Pinsky and his other cohorts are in fact evil computer geniuses with sociopathic traits who heartlessly ruin their innocent victims' lives and gleefully boast of their multi-million-dollar heists," Terpin said in his complaint filed Thursday in federal court in Manhattan.

Pinsky, of Irvington, New York, couldn't be reached for comment....

According to Terpin. Pinsky's ring identifies people with large cryptocurrency holdings and gains control of their phones by bribing or fooling employees of their wireless carriers. The hackers are then able to intercept authentication messages, gain information and drain the victims' cryptocurrency accounts.

Pinsky has boasted to friends that, starting at age 13, he stole more than $100 million worth of cryptocurrency, hundreds of thousands of dollars of which has been converted into cash stored in his bedroom, the lawsuit alleges. Terpin also claims that, after confronting Pinsky about his alleged role in the theft, the teenager sent him cryptocurrency, cash and a watch with a combined value of $2 million. He claims this was an admission by Pinsky that he had stolen from Terpin.