I wasn’t bowled over by the idea of Netflix ownership but a merge of Paramount and Warner seems way, way worse. In a sane political situation this would raise huge antitrust concerns but… well, here we are I guess.
If it does go through I wonder if there’s a scenario where it still works out for Netflix: they could pick up assets at bargain prices when the merged studios inevitably sell and lay off everything they can.
softwaredoug 55 minutes ago [-]
State AGs play a role in anti trust enforcement. So it’s not over yet.
lapetitejort 52 minutes ago [-]
When has a state AG successfully cancelled a merger? Did any state try to prevent Microsoft and Activision's merger?
This means Netflix still has all that cash they were planning to spend on WB, plus the 2.5B breakup fee from WB.
They could arguably just build a better WB from scratch with that kind of money.
crazygringo 13 minutes ago [-]
$2.8B! Which isn't huge next to Netflix's market value of $357B... but when you compare it with its $45B 2025 yearly revenue, it's at least a noticeable bump. You could make almost 4 five-season-long Stranger Things with it.
internet101010 14 minutes ago [-]
Or just buy Paramount in a couple of years.
nutjob2 9 minutes ago [-]
It's WB's back catalog that is the main prize.
add-sub-mul-div 9 minutes ago [-]
They've spent many multiples of that on their throwaway binge content but that doesn't get them to something as culturally valuable as WB.
darth_avocado 41 minutes ago [-]
Netflix is going to buy them both for the same price in about 5 years. Paramount is a highly leveraged company. They are not going to come out of this very expensive acquisition unscathed.
cyanydeez 2 minutes ago [-]
As long as they get to keep a media alt-right afloat in politics, it doesn't matter their value.
HDThoreaun 14 minutes ago [-]
The Ellisons have zero liquidity issues. Theyll sell off parts to cut costs but no chance they sell the stuff they actually want
mudil 19 minutes ago [-]
I would not bet against RedBird and Ellisons.
andsoitis 18 minutes ago [-]
One must.
master_crab 58 minutes ago [-]
Well, Netflix did succeed at making the Ellisons pay a large fortune for something that costs a small fortune.
dylan604 42 minutes ago [-]
waits 20 minutes, cool, interest just covered whatever that extra was
PearlRiver 24 minutes ago [-]
Netflix so far has been the only consistent winning team in the streaming competition.
It is pretty clear that Trump wanted Paramount to win so it is smart for them to cut their losses.
throwaway5752 24 minutes ago [-]
Now they can control millennial and younger minds by controlling what CNN broadcasts.
avtar 5 minutes ago [-]
Young people are more into TikTok than CNN, and the Ellisons already control that in the U.S.
afavour 20 minutes ago [-]
…young people don’t watch CNN.
llm_nerd 9 minutes ago [-]
I feel like you're posting some humorous sarcasm and are being misunderstood.
btian 17 minutes ago [-]
Nobody watches CNN
israrkhan 48 minutes ago [-]
Paramount agreed to pay the $2.8 billion breakup fee that WBD would owe Netflix if that deal didn’t go through.
softwaredoug 44 minutes ago [-]
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.
lovich 38 minutes ago [-]
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.
dylan604 40 minutes ago [-]
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.
master_crab 33 minutes ago [-]
Share price of Netflix jumped 10% after the news broke. Pretty sure shareholders will see a lot of upside.
anduril22 19 minutes ago [-]
Unfortunately Paramount will retain HBO, and auction off Discovery, which no one wants anyway.
andsoitis 19 minutes ago [-]
Paramount's financing package combines roughly $45–46 billion in equity with more than $57 billion in debt.
The deal values Warner Bros. Discovery at around $111 billion ($31 per share), and including WBD's existing debt, the total takeover comes to more than $110 billion. NBC News
It would be the largest leveraged buyout (LBO) in history, with $87 billion of total pro forma gross debt and an estimated gross leverage of approximately 7x 2026 EBITDA before synergies.
Seems like a poor decision driven by ego.
xenadu02 11 minutes ago [-]
My question is: who is lending the money for these leveraged buyout deals? They seem to leave the lenders holding the bag at some point when it all implodes. Do these deals really pay off often enough to be worth financing them?
indigodaddy 20 minutes ago [-]
So NF is just not matching or exceeding an elevated Paramount offer... But could WBD still choose the already on the table NF deal at the end of the day? I guess with the sort of statement that Netflix made though, it's likely WBD would not and realizes NF is just done at this point. Or maybe it's some sort of double bluff by NF? Hard to really know for sure.
andsoitis 16 minutes ago [-]
It would not be in WBD shareholders interest to walk away from Paramount's overpayment. It is a great deal for WBD shareholders, but a poor financial outcome for Paramount. Netflix's discipline is noteworthy.
zedlasso 22 minutes ago [-]
RIP Superman
aaronbrethorst 12 minutes ago [-]
"Truth, Justice, and the American Way" aren't dead yet.
nutjob2 5 minutes ago [-]
Are you sure?
softwaredoug 1 hours ago [-]
Maybe running up the price was part of the point.
galleywest200 43 minutes ago [-]
Paramount has a lot of problems right now, financially. Maybe Netflix plans to buy them both in the next few years after those issues come home to roost for Paramount.
softwaredoug 42 minutes ago [-]
Based on past owners of Warner Brothers, seems fairly likely in a few years. The value will be 1/10 of what it is today.
nutjob2 4 minutes ago [-]
And when there is a different US administration.
hnburnsy 35 minutes ago [-]
Like many things, phone OS, desktop OS, CPUs, GPUs, ride sharing, credit card payments, video game consoles, we are heading towards a Disney/Paramount duopoly
andsoitis 27 minutes ago [-]
> we are heading towards a Disney/Paramount duopoly
Duopoly over what? Worldwide video entertainment?
ibero 15 minutes ago [-]
paramount will disintegrate in due time.
helaoban 24 minutes ago [-]
Easiest $2.8 billion made in history?
Rendered at 00:40:31 GMT+0000 (Coordinated Universal Time) with Vercel.
If it does go through I wonder if there’s a scenario where it still works out for Netflix: they could pick up assets at bargain prices when the merged studios inevitably sell and lay off everything they can.
They could arguably just build a better WB from scratch with that kind of money.
It is pretty clear that Trump wanted Paramount to win so it is smart for them to cut their losses.
Paramount was about to go to idiotic lengths to get this. Netflix is willing to walk away.
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.
The deal values Warner Bros. Discovery at around $111 billion ($31 per share), and including WBD's existing debt, the total takeover comes to more than $110 billion. NBC News
It would be the largest leveraged buyout (LBO) in history, with $87 billion of total pro forma gross debt and an estimated gross leverage of approximately 7x 2026 EBITDA before synergies.
Seems like a poor decision driven by ego.
Duopoly over what? Worldwide video entertainment?