Maybe running up the price was part of the point.

I wasn’t bowled over by the idea of Netflix ownership but a merge of Paramount and Warner seems way, way worse. In a sane political situation this would raise huge antitrust concerns but… well, here we are I guess.

If it does go through I wonder if there’s a scenario where it still works out for Netflix: they could pick up assets at bargain prices when the merged studios inevitably sell and lay off everything they can.

Well, Netflix did succeed at making the Ellisons pay a large fortune for something that costs a small fortune.

Paramount agreed to pay the $2.8 billion breakup fee that WBD would owe Netflix if that deal didn’t go through.

Netflix is going to buy them both for the same price in about 5 years. Paramount is a highly leveraged company. They are not going to come out of this very expensive acquisition unscathed.

Like many things, phone OS, desktop OS, CPUs, GPUs, ride sharing, credit card payments, video game consoles, we are heading towards a Disney/Paramount duopoly

Easiest $2.8 billion made in history?

RIP Superman

This means Netflix still has all that cash they were planning to spend on WB, plus the 2.5B breakup fee from WB.

They could arguably just build a better WB from scratch with that kind of money.

So NF is just not matching or exceeding an elevated Paramount offer... But could WBD still choose the already on the table NF deal at the end of the day? I guess with the sort of statement that Netflix made though, it's likely WBD would not and realizes NF is just done at this point. Or maybe it's some sort of double bluff by NF? Hard to really know for sure.

Unfortunately Paramount will retain HBO, and auction off Discovery, which no one wants anyway.

Paramount's financing package combines roughly $45–46 billion in equity with more than $57 billion in debt.

The deal values Warner Bros. Discovery at around $111 billion ($31 per share), and including WBD's existing debt, the total takeover comes to more than $110 billion. NBC News

It would be the largest leveraged buyout (LBO) in history, with $87 billion of total pro forma gross debt and an estimated gross leverage of approximately 7x 2026 EBITDA before synergies.

Seems like a poor decision driven by ego.

Interesting perspective, here, from someone who has observed a tiny bit of unknown streaming history.

So, way back in the day, 2005, Turner Broadcast corp. launched this weird-ass thing, known as GameTap https://en.wikipedia.org/wiki/GameTap . It was a subscription-based service that offered on-demand retro videogames. While it started as a way to play MAME Pac-Man and Metal Slug legally from a legit service, it grew into a competitor in the online games market arena in a time when Steam was still nascent.

The whole thing was created by this amazing fellow named Blake Lewin. Blake was really sharp, and having built this on-demand, streaming emulation service, he even went on to add at-the-time-modern games. Now, this stuff literally just installed the game on your HD and let you play, so it wasn't quite Stadia or Luma, but it was absolutely ahead of its time, and it was really slick.

I was a journalist then, and while games journalists get pampered, Turner moving into games was on another level. They launched this thing at the Armani Store on Market St. in SF, and when you walked in, they asked you to pick some sun-glasses from the case to take with you when you left.

GameTap was great and even gathered a following, but from the moment it launched, I knew what it really was: Turner's scientific experiment to build the infrastructure to later allow it to stream its enormous library of content. Movies, cartooons, TV shows, etc.

I was having lunch with Blake, a few years into GameTap, and I asked him point blank how the video streaming prototypes were coming (pure guess, no evidence). He was baffled and wanted to know how I knew they were working on that.

But in the end, the service never launched, AFAIK. Maybe some remnant is still there somewhere, but it just shows, you can be years ahead in your planning and development, and still end up alone at the end dance. It's a shame. Turner has so many great things in their library, why is it not possible for me to just pay someone for access to all the old movies in the TCM vault!?

Well, hope you enjoyed Pax Americana. We're heading into something that feels... about halfway between reich-y and soviet-y, at least on the propaganda front. Which is deeply ironic, of course.