The behavior of each party in this whole process gives you a lot more confidence in Netflix leadership than Paramount / Skydance.
Paramount was about to go to idiotic lengths to get this. Netflix is willing to walk away.
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Yea Paramounts behavior doesn’t seem rational if the direct economics of the companies involved were the only concern.
But given that Paramount wanted to buy the CNN portion of the business that Netflix wasn’t even bidding on, it kinda seems like they have a longer term goal in place.
Sure, I'd be willing to walk away with a briefcase holding $2.8 Billion with a B. How much stock would that buy back? Doubtful shareholders see any dividends from it.
Share price of Netflix jumped 10% after the news broke. Pretty sure shareholders will see a lot of upside.
I think Netflix is incredibly foolish for letting Paramount scoop this up, and their leadership is taking a huge gamble that the very broad media empire the extreme right has and is building in combination with unilateral control of the government will not be used to seriously undermine companies like Netflix in the coming years.
Netflix isn't going to be simply competing against Paramount/WBD, they are going to be competing against the State's custom built propaganda machine.
But i can understand the sentiment: Why should a company fight this fight? They are not incentivized to overpay for politics of that caliber.
> Why should a company fight this fight?
Because the company lives in a free society and has benefitted from being in that free society?
Just ask the folks in Hungary or (esp.) Russia what happens when all the independent media gets bought up by government sycophants: do you want to live in that kind of society?
That’s silly
I think you overestimate the influence of traditional media these days. CNN is a declining asset. Nobody under 60 gets their news from these places. Anyway, by the time the deal closes Trump will be in lamb duck status.
And the amount of debt being taken on for the deal is astronomical.
There is a post Trump world. These companies have to be financially successful in.
Exactly right, which is why I will bring up that the same company that will own WBD (cnn) will also own in major part Tiktok, which is exactly where younger people get their news.