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20.12.25 - 01:06
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Why Netflix Buying Warner Bros. Discovery Is A Bad Bet For Investors (ZeroHedge)
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Why Netflix Buying Warner Bros. Discovery Is A Bad Bet For Investors
Authored by Mark Anthony of Forrester Research,
Eaerlier this week, Netflix responded to the vast industry concerns about its deal to acquire Warner Bros. Discovery from the likes of the Writers Guild of America and a who's-who list of elected officials, including liberal ones like Sens. Bernie Sanders and Elizabeth Warren, by stating that “the “deal is about growth” and that the company is “strengthening one of Hollywood's most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.”
Netflix continues to tout how it is a perfect strategic fit for WBD, but the only strategy that matters to investors is the one that provides the most deal certainty, speed to close, and risk-adjusted return. By those measures, a Netflix acquisition of WBD is a fundamentally unattractive trade.
It is only a matter of time before this deal to combine the two companies will face antitrust scrutiny ?...
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