Preference for Netflix Deal in Warner Bros Discovery Scenario

about 1 month ago

"Does the Middle East step up with with the Ellison? Is that what we're talking about? If I were advising Warner Brothers Discovery, I would say I think I prefer the Netflix deal simply because I have greater confidence in the equity component. Uh for the equity component for Paramount, I've got Mr. Ellison saying, "Trust me." Okay, I can trust you. You're the richest guy of the world or one of the richest guys. I've got a lot of M East money. I'm not sure if I like that. Um but this the pro-form company's going to have a ton of debt on it. Um and that's a problem. It's an ongoing concern. So again, I can see I can understand why the Warner Brothers advisers are saying, "Hey, let's stick with Netflix.""

The speaker expresses a clear preference for sticking with the Netflix deal over the alternative Paramount offer in the context of Warner Brothers Discovery. The analysis emphasizes a high degree of trust in the equity component of the Netflix deal while highlighting concerns about Paramount's reliance on assurances and the added debt risk on the pro-form company. This commentary provides investor insight into the strategic decision-making process and potential downside risks with the competitor offer.

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