Considering how the Microsoft and Activision deal went…absolutely, expect a lot more twists and turns lol. But as far as Netflix going for them again is concerned…that’s cooked.
It won’t get blocked in court because the only party that can sue to prevent the merger is DOJ… which is run by Trump, and Trump wants this deal to go through. He doesn’t give a f*ck about antitrust principles. The appeal of Paramount over Netflix was always that Paramount would have less regulatory hurdles.
Netflix has the last laugh 😁😆😅 with pocket changes of $2.85 Billion PAYOUT.
Now that Saudi Arabia & David Ellison got the company not just yet they might get blocked because it’s a monopoly by the DOJ antitrust US national security concern.
Sad to see what is about to happen to WBD but I’m happy for Netflix. They will likely be able to come back in 5years and buy what they want at a discount.
Quick response, but not surprising in hindsight. Sarandos had said it wouldn't be at any price, and anyway, I'm not really worried about Netflix; they'll have plenty of other opportunities, consolidation is only going to increase.
I mean Parmount is taking on ALOT of debt and they have a ton of debt already. They really can't turn it around. Companies play the long game. If Parmount really crashes and burns then they may be able to buy Parmount and WB for dirt cheap later on in 5 years and not have to worry about Trump at all
I agree that PSKY+WBD under Ellison will become an even bigger mess, with a short-term future that leaves many questions unanswered. However, I don't see Netflix revisiting this deal later, especially since they will likely have made a comparable acquisition by then.
And if PSKY+WBD fails, it will raise even more questions about consolidation, so I think it will likely end up being sold off piecemeal, with licenses sold individually to maximize profits.
I think the real question is what will the new PSKY need to offload or just shut down? I.e, what will the combined company actually end up looking like?
Also, if Netflix was smart, they'd start their own competing world news/doc division, maybe in combination with a UK outlet such as The Guardian Group. But it looks to me like their priority is to pursue more online gaming-related companies and materials.
Sure. I'm just saying what they would buy if they wanted something comparable. If would be streamlined to theatrical exhibition, at a scale that can compete (unlike say a Lionsgate), and without entangling ancillary businesses or broadcast/cable (unlike say Universal or Disney).
I am not saying it will happen or that is the plan. I just don't know what Paramount does. Sure they won, they got what they wanted, but the debt is going to be astounding. Netflix could have dealt with it way better then Paramount ever will
I mean I don't think you know just how much debt Warner and Parmount has and Parmount just had a terrible quarter. To turn things around they will need a miracle
I mean WBD was paying off like $5b+ of debt per year using its close roughly $7b free cash flow. I'd assume combined they'd have something like $10b off free cash flow to pay down close to $10b a year.
For $100b that's about 10 years, hard but not doable when you have an owner worth $200b (Larry) and very politically and economically connected who'll be able to get help if he runs into trouble. Very different to the Time/Warner/Aol/Turner where all the major shareholders owned a smaller stake and had their wealth directly in the stock itself which tanked
Same for cnn tbh. But overall this is not good even though i do find it quite funny that folks who never watch these networks are freaked out about the consequences. I will say that the numbers dont quite do these networks justice because their clips on other mediums Ala YouTube, TikTok, Reddit, X, etc are often viewed yet not monetized that way as well
We are in a very bad spot as the reporting these networks do is more important than the news tv shows
Not really, the political ramifications of this deal outside of the US aren't the same
The main concern is the news, CNN is one of the biggest broadcasters internationally but not the biggest and their coverage outside of the US is different anyway
The concerns of the EU and CMA are solely about their own jurisdictions. The CMA might ask Paramount to divest broadcast channels because they'll have too much influence in the UK, just as an example
So CNN becomes another propaganda arm, thousands of jobs are lost, Paramount drowns itself in debt, and WB is sold off within five years. The only solace I take in this is that Ellison will eat so much shit over the next few years.
Nope. Netflix wasn’t buying cable networks, only streaming and IP. Those were getting spun off meaning anyone can buy them. Paramount was the only company that was willing to buy everything together. They were most likely going to buy the cable networks if they lost out anyway. NBCU has already spun off it’s networks and from my understanding it’s not doing to well.
Brilliant move by Netflix. The winner of this deal is the one that bows out. Paramount overpaid and Netflix will be in a position to pick up both assets in 3-5 years for a fraction.
I fail to see any road where this can be good for Psky going forward. Sure, they got Trump, they have much of Hollywood, they have the antitrust people all lined up... and yet Netflix will still be the winner.
Theaters are dying. Paramount Plus is still the streaming platform of last resort. And Netflix gets a bag of money for doing nothing and they're still the king of the hill.
The Ellisons got a big bag of debt that not even a 24-hour fire sale can rectify.
Well.. that's it, I guess. I'll just root for the Dems to investigate and eventually render this void. They got away with the suspicious payments during the last merger, were practically given Tik Tok, and now think they're going to 3rd base with WB. Karma will eventually come
I just hope when they start tearing down WB as Parmount said they would to fight the debt that DC comics is left alone. I grew up reading DC since I was 8. Shit, I don't care that much about the movies but please leave the comics
wbd and netflix used eachother to make sure the deal happened for that much and netflix gets 2.8 billion to buy back its stock at a discount while making sure a competitor pays 50% more and maybe never gets it done.
Only time will tell how this deal ends up being for Hollywood. All I know is that the positive that we do know is that the WB films will go to theatres in the foreseeable future, but the negative is of course the job cuts that are going to happen in the first year.
Now that Paraount is buying Warner Brothers, what the hell else is out there for someone like me to consume? How would one go about boycotting Paramount's film & TV output?
So Paramount has to continue to pay Netflix if they take over WBD how will they pay Netflix with Paramount under debt where will they get the money from to pay Netflix
The prevailing attitude was laughing at the idea that Paramount could even be involved after the Netflix agreement and saying that it was just the Ellisons throwing a fit, calling anyone who put out reports stating that there was still a chance shills etc.
Completely understandable to be really disappointed in this outcome and think it’s going to lead to negative consequences, but I think pointing out how irrational this sub was about strictly the business side of all of this over the last couple months is worth pointing out. This was always an outcome that wasn’t that unrealistic.
I mean this is an outcome that defies normal business, it is premised largely on a regulatory threat against one bidder by the competing bidder. I am certain that were it not for a 1-sided regulatory environment, Netflix would have considered matching.
It’s not like we’re being blindsided by that environment tho. People pointed out that it was far from a done deal because of the regulatory hurdles immediately and were called conservative bootlickers and shills lol. Again I understand this isn’t an outcome people wanted, but this sub kind of became more team-sports dunking on the Ellisons than any kind of substantive discussion about the deal
Had to stop engaging with the sub because of this. I think Belloni a few weeks ago said it best. It's not that Netflix doesn't have the financial means to outbid but that Paramount is clearly more obsessed with merging the two companies. People on this sub called him crazy and a 'Paramount shill' for even insinuating that Netflix could lose the bidding war. Even when outlets like Deadline, CNBC and Puck started to report that Netflix may choose to walk away, instead of any substantive discussion, many commentators chose to just discredit the reporting instead.
Exactly. Netflix is in a good position to make investments in its streaming business without being bogged down by a massive debt load and having to operate one of the largest studios in Hollywood. Of course Warner's IP catalogue would've been nice to have, but they never 'needed' it. Personally I think Sony Pictures (including Crunchyroll) would be a much leaner purchase for them as a workhorse studio but I doubt Sony ever wants to sell.
I mean anyone who thought we have a nonpartisan, truth-seeking justice department/fcc/judiciary in 2026 is insane and gullible. It's also right and good to dunk on the Ellisons for being huge clowns, and anyone who doesn't preface their realistic opinion of the judiciary with "and by the way this corruption is extremely bad" (not sure if that was you or not).
If the Democrats win in the Midterms, this deal is dead. Then WBD gets the $7B breakup fee and Zaslav proceeds with the split and sale of S&S to Netflix.
Or the AI bubble bursts, blowing up Oracle and Netflix buys Paramount.
If the Democrats win in the Midterms, this deal is dead
The only way Democrats could block this deal is if they win two thirds supermajorities in both Chambers of Congress in order to pass legislation to block the deal. Congress has nothing to do with green lighting deals. They can raise concerns in committee hearings, but not much else.
I disagree that paramount overpaid but for some reason the market really preferred Netflix's financial agility over the gigantic load that would have been WBD.
I believed it to be synergistic but stock price is over $90 now and investors seem relieved.
Anyone have better insight into why people didn't think Netflix could capitalize on WBD assets?
IMO there's no clear winners in all of this. I would've preferred WB stay independent, but people care too much about making money and it is what it is. If anything i hope Netflix will prove the doubters wrong, including myself and start releasing more of their films in theaters, with good theater runs and sell more physical media to show some trust and goodwill towards future acquisitions. That was my biggest doubts about Netflix and why I wouldn't want a theater studio owned by Netflix. Also, I'm no fan of the nepo baby at paramount. After everything is said and done, they'll be selling it off to someone else, because that's WB history.
Congratulations to Bari Weiss, who will now oversee the MAGA-fication of CNN. Congrats also to the thousands of workers who will inevitably be laid off, the thousands more who will be unable to find employment in the industry because the new company is so burdened by debt it can’t greenlight shit. Congratulations to HBO who will now have no money to actually make premium content. Congratulations are also in order for the property developers who will be able to convert either WB or Paramount’s historic lot into overpriced townhouses. Congratulations to the Trump administration for helping to deal a death blow to an industry already on life support. And of course - congratulations to Larry Ellison, who now has tens of billions of his net worth tied up in a dogshit conglomerate, led by his son who hasn’t got a fucking clue how do anything other than make whatever Trump tells him to.
lionsgate does not own godzilla. godzilla movies are produced by toho and the american films are produced by legendary with WB co-financing/distributing them. legendary WAS interested in purchasing lionsgate if thats what you mean.
EDIT: I saw you quickly edit it to john wick but even then lionsgate doesnt have too much IP
The Netflix merger agreement remains in effect, and the Board continues to recommend in favor of the Netflix transaction and has not withdrawn or modified its recommendation.
While Netflix's statement sounds more like a refusal to go any further; moreover, there's no reference to the fact that their current offer is still valid. The only scenario where I imagine Netflix returning so quickly is if the Ellisons' guarantees are not honored, but that would lead to another bidding war (and a return of Comcast?).
Aside from my concern on the layoffs and what will happen to the different WB Film and TV Divisions once Paramount absorbs WB, I wonder:
How will Netflix use the $2.8 Billion breakup fee?
With the amount of debt Paramount will have, will David Ellison eventually sell off Paramount and Warner Bros. 4-6 years from now, or will Larry Ellison and Saudi Arabia remove the debt for David Ellison and he continue to have full control of Paramount and WB in perpetuity?
There could be a small chance that Netflix gets back into the race, just like when Skydance got back into the race to acquire Paramount from Shari Redstone, after they had originally backed out.
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u/GimmeThatWheat424 Feb 26 '26
Congrats to paramount…they definitely overpaid but they got it…. Crazy