This relating to the Warner Bros/Netflix/Paramount Skydance bidding war.
Now I don't know all the details but from what I was told is that Netflix can't raise their hypothetical counterbid to $35 because shareholders are not enthusiastic about getting WB.
Is there any truth to this? I've been told but at the same time I don't think it's not really super clear ro me especially with all that's going on or waiting me into asking this question on why did Netflix even want to pursue Warner Bros if there was going to be problems with acquiring Warner Bros, either from regulators or Paramount being stingy about Warner Bros so much that they are launching a hostile takeover and to get Warner Bros to accept their "SUPERIOR" offer?
This entire thing is driving me up the wall to where I guess I want to know if Netflix shareholders don't really approve acquisition of Warner Bros meaning Netflix isn't going to raise their bid to $35 Paramount does it.
Some people treat this like it's a fact but others kind of come off like it's a no or a unsure thing.
Netflix shareholders doesn't want Warner Bros right?
byu/SparePersonality2024 instocks
Posted by SparePersonality2024
5 Comments
Short term bad
Long term good
Shareholders care more about short term gains
“A bird in hand is better than two in the bush”
I think it speaks more to Netflix management’s confidence in organic growth.
Happens all the time in business, grow organically, feel the slowdown, and then pivot towards growth through acquisition.
I don’t know if it’s good or bad yet.
Generally, M&As do not get the return they need justify the price paid. That’s why NFLX dipped when the acquisition was announced, so paying more for the same company will not be received well.
In saying that, I like this acquisition for Netflix .
Most acquisitions are done at a premium, so in the short term shareholders are almost always going to be against them.
$WBD is up nearly 200% in the past year from competitors basically speculating and bidding up their price. They aren’t worth $70B+ as a standalone company and it will take MANY years for anyone to recoup the full value from this acquisition.
As a Netflix shareholder, I think they’re probably in the best position to milk all the WBD IP and make money back the fastest. I hope they win, but ideally without upping their bid and essentially just setting more money on fire.
Cost a lot but Netflix is getting a huge library and the DCU which was just rebooted and looks to be heading in the right direction while marvel is sputtering. And they are getting Harry Potter which Universal makes set annual payments for the theme park rights, which increase periodically every 3 years based on the CPI for inflation. It’s an undisclosed amount but JK Rowling earns about 100 million from it annually.