Netflix has backed out of the deal.
A deal valued at over $82 billion. If Netflix fails to match Paramount’s bid, the world is worse off for everyone. This Ellison takeover is hostile, will result in massive layoffs, and assuming the deal will be approved by regulators — it would mean all of Warner Bros’ HBO Max streaming customers become Paramount subscribers. Other outfits include CNN, the Food Network and not to mention an impressive array of sports offerings.
We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.
I’m not a fan of Netflix, nor am I defender of its corporate culture. But I do think there is sincerity here. I think Netflix’s DNA is truly honest. While Paramount is plunderous.
We all lose on this deal.
