WBD Acquisition Thread

[GRPHX]

Probably seeking an acquisition by Sony, which would bring Netflix under common ownership with Sony Pictures and effectively make Netflix the flagship streaming service of Sony Pictures.

It would also bring the smash hit KPop Demon Hunters back under Sony control.

Sony is a company that is constantly in debt, except for the entertainment side, and has no profit, except for PlayStation and Sony Pictures, and its vaults are empty, constantly making losses in high tech electronics. Why would NF want to be taken in by them?

 

[PF9]

Sony is a company that is constantly in debt, except for the entertainment side, and has no profit, except for PlayStation and Sony Pictures, and its vaults are empty, constantly making losses in high tech electronics. Why would NF want to be taken in by them?

Sony Pictures doesn't have a streaming service.

Netflix doesn't have a legacy studio library.

Two birds are killed with one stone.

 

[GRPHX]

Sony Pictures doesn't have a streaming service.

Netflix doesn't have a legacy studio library.

Two birds are killed with one stone.

This does not provide the cash and cash register convenience that fit to Netflix's business model.

 

[Moe]

What goal do you think Netflix will turn to next? The problem of not having a legacy library persists.

They would make more original series and rely on licensing agreements from various studios.

I don't anticipate Netflix buying major studio due to strict financial discipline in place.

Probably seeking an acquisition by Sony, which would bring Netflix under common ownership with Sony Pictures and effectively make Netflix the flagship streaming service of Sony Pictures.

It would be very high unlikely due to Sony's financial discipline like Netflix.

Sony and Netflix would rather to cooperate to make new contents than rely on M&A.

M&A don't often fix the problems and it can hurt Sony or Netflix more.

Sony is a company that is constantly in debt, except for the entertainment side, and has no profit, except for PlayStation and Sony Pictures, and its vaults are empty, constantly making losses in high tech electronics. Why would NF want to be taken in by them?

Agreed, it isn't sustainable for both companies.

 

[harry580]

I rather have sony pictures has a streaming service on the scale of fox one

 

[Moe]

I rather have sony pictures has a streaming service on the scale of fox one

Sony tried with Crackle but it didn't work and they sold to other company, so Crackle went down when owner of Redbox went bankrupt.

They have Crunchyroll, also Sony rely on Netflix for first-run deal, Disney+ for second-run and general/legacy deal with Starz, AMC Networks, HBO/Cinemax, MGM+/ScreenPix, Showtime/Paramount, Weigel and few others.

Sony make more money with licensing deals.

 

[harry580]

well, I don't think the Warner bros & paramount together would last long:

remember, the company that owns popeyes and churches almost had a monopoly on the chicken market and we know what happened (bankruptcy and selling Popeyes in 2004)

 

[PF9]

Sony tried with Crackle but it didn't work and they sold to other company, so Crackle went down when owner of Redbox went bankrupt.

They have Crunchyroll, also Sony rely on Netflix for first-run deal, Disney+ for second-run and general/legacy deal with Starz, AMC Networks, HBO/Cinemax, MGM+/ScreenPix, Showtime/Paramount, Weigel and few others.

Sony make more money with licensing deals.

Licensing deals can only be viable for so long. Plus Crackle was a free service, those aren't always going to work out compared to paid services (notable exception being Tubi).

 

[JulianRO]

Ted Sarandos “Unlikely” To Attempt Another Netflix M&A After Ceding Warner Bros, Teases “Open Dialogue” With Theater Owners

After bowing out of the bid for Warner Bros. Discovery last week, Netflix CEO Ted Sarandos is teasing what's next for the streamer.

deadline.com

More details about the Netflix bid being cancelled.

Somehow, it feels for me that they wanted and not WBD. Like, he is says that they are not buyers, but he still tried buying WBD.

I remember saying the same before coming with a bid back in October, before the bidding war. I'm wondering in this case, why then he still placed a bid after all to later drop it?

 

[PF9]

They would make more original series and rely on licensing agreements from various studios.

As I have mentioned, the licensing agreements with Paramount and WB could very well go out the window in retaliation for Netflix losing WB to Paramount. This would include both library content and Netflix originals, with some in the latter category already having set premiere dates for their next seasons on Netflix.

This would force fans of those specific originals to wait a little while longer while new homes are found for them. In the end though it would be worth the longer wait.

 

[GRPHX]

Ted Sarandos “Unlikely” To Attempt Another Netflix M&A After Ceding Warner Bros, Teases “Open Dialogue” With Theater Owners

After bowing out of the bid for Warner Bros. Discovery last week, Netflix CEO Ted Sarandos is teasing what's next for the streamer.

deadline.com

More details about the Netflix bid being cancelled.

Somehow, it feels for me that they wanted and not WBD. Like, he is says that they are not buyers, but he still tried buying WBD.

I remember saying the same before coming with a bid back in October, before the bidding war. I'm wondering in this case, why then he still placed a bid after all to later drop it?

To leave Skydance burdened with huge debt and take over the entire studio and streaming business of Paramount and WBD with less payment five years later. Maybe they think that funding cannot be provided and that the deal will collapse. This would be a clear opportunity for Netflix, and they would finish the deal at a price lower than 27.75 per share.

As I have mentioned, the licensing agreements with Paramount and WB could very well go out the window in retaliation for Netflix losing WB to Paramount. This would include both library content and Netflix originals, with some in the latter category already having set premiere dates for their next seasons on Netflix.

This would force fans of those specific originals to wait a little while longer while new homes are found for them. In the end though it would be worth the longer wait.

To be honest, Netflix's original productions sucks. I would definitely prefer a good legacy network library.

Mod Note: Triple post merged. Use the multi quote and edit buttons instead of posting three times in a row

 

[John Pannozzi]

To be honest, Netflix's original productions sucks. I would definitely prefer a good legacy network library.

I can name at least a handful of good in-house Netflix productions, especially Stranger Things (easily one of most of favorite shows in recent memory).

But so many Netflix originals are collaborations with other companies (Stranger Things is an example of this, actually), or are third-party workshops only distributed through Netflix, it can be tricky to define what counts as a "true" Netflix original.

 

[GRPHX]

I can name at least a handful of good in-house Netflix productions, especially Stranger Things (easily one of most of favorite shows in recent memory).

But so many Netflix originals are collaborations with other companies (Stranger Things is an example of this, actually), or are third-party workshops only distributed through Netflix, it can be tricky to define what counts as a "true" Netflix original.

My only favorite NF original was Lucifer.
@RegularCapital and @JulianRO knows.
I don't count non-US originaö content. Overall I don't like streaming series format.

Stranger Things?? I' not a horror fan.

 

[John Pannozzi]

My only favorite NF original was Lucifer.
@RegularCapital and @JulianRO knows.
I don't count non-US originaö content. Overall I don't like streaming series format.

Stranger Things?? I' not a horror fan.

I didn't realize that the last few seasons of Lucifer were original to Netflix until now.

If we can count documentary series that originated on Netflix, what about The Toys That Made Us? Or Disenchantment (if you're a fan of The Simpsons or Futurama)?

And FWIW, I'd count Stranger Things as more science fiction than horror.

 

[JulianRO]

SAG-AFTRA Chief Says Union Will Render Verdict on Warner Bros. Sale to Paramount 'When the Time Is Right' | Video

The dramatic cat-and-mouse game that led to Paramount Skydance's winning bid for Warner Bros. Discovery kept the SAG-AFTRA analytics team on high alert for weeks – but the actors' union is still not ready to make a call on what it means for them, executive director Duncan Crabtree-Ireland said...

www.thewrap.com

And I thought that people would take it easier with Paramount. But looks like it will be getting the same hate as Netflix.

 

[lowell]

I don't anticipate Netflix buying major studio due to strict financial discipline in place.


It would be very high unlikely due to Sony's financial discipline like Netflix.

Sony and Netflix would rather to cooperate to make new contents than rely on M&A.

M&A don't often fix the problems and it can hurt Sony or Netflix more.


Agreed, it isn't sustainable for both companies.

Even Sarandos says they're ruling out future pursuits because they're builders.

Given Netlfix's valuation being around $300B, I think it's far more likely that Sony scoops up Paramount Global from Larry Ellison's hands if Oracle faces financial problems, closing his purse strings to David.

David's handling of the business is so bad that even a subscale Sony would now be a step above over Skydance in integrating Paramount Global.

As for Netflix, given they're following in similar footsteps of Tim Cook's "toolmakers" strategy of building than buying, I wouldn't also rule out the possibility that Apple engages them for a fair deal in the future, given Netflix has made change-in-control compensation plans in such a M&A scenario.

 

[JulianRO]

Given Netlfix's valuation being around $300B, I think it's far more likely that Sony scoops up Paramount Global from Larry Ellison's hands if Oracle faces financial problems, closing his purse strings to David.

He would have to sacrifice maybe a lot from Oracle's stock, for sure.

 

[zakawer2]

The scenario where Warner Bros. Discovery separates into Warner Bros. and Discovery Global while neither company gets acquired at all is looking more ideal than the scenario where Paramount, a Skydance Corporation fully acquires Warner Bros. Discovery in its entirety, especially since it wouldn't require any corner-cutting (and Warner Bros. Discovery already had to deal with a buttload of corner-cutting following its 2022 establishment).

 

[JulianRO]

This depends on the shareholders' vote, and if there are no antitrust issues.

 

[lowell]

He would have to sacrifice maybe a lot from Oracle's stock, for sure.

Yup, Oracle is actually taking on large amounts of debt just to build up data centers and on AI spending.

If the AI bubble pops and drags Oracle on a painful financial rollercoaster, Larry will likely focus on rescuing them as his priority and could seek a quick way to do an exit sale from Hollywood to recoup his money.

This is why using Oracle stock as loan collateral isn't exactly a sound strategy and could also jeopardize the funding for the WarnerDiscovery deal.