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Posted

Preliminary non-binding bids due tomorrow.  3 bidders: Paramount SkyDance (David Ellison); Netflix; and Comcast.  All 3 create different industry challenges.  A Paramount/WBD merger creates a monster, probably outsizing the Mouse.  Netflix has historically shun the box office for streaming.  Would they continue to do so?  The acquisition would vastly enhance their production capabilities (and selfishly for our company this is by far the best outcome), and Comcast, who doesn't want the cable networks, may be forced to buy them, and if that is the case, may not have the money. 

WBD is simultaneously looking at splitting its studio and tv businesses, but that might not maximize shareholder value.  Whatever happens, it could be one of the biggest industry resets in ages, if not ever. 

Posted
2 hours ago, Sbbruin said:

Preliminary non-binding bids due tomorrow.  3 bidders: Paramount SkyDance (David Ellison); Netflix; and Comcast.  All 3 create different industry challenges.  A Paramount/WBD merger creates a monster, probably outsizing the Mouse.  Netflix has historically shun the box office for streaming.  Would they continue to do so?  The acquisition would vastly enhance their production capabilities (and selfishly for our company this is by far the best outcome), and Comcast, who doesn't want the cable networks, may be forced to buy them, and if that is the case, may not have the money. 

WBD is simultaneously looking at splitting its studio and tv businesses, but that might not maximize shareholder value.  Whatever happens, it could be one of the biggest industry resets in ages, if not ever. 

Why are they looking to sell? 

Posted
30 minutes ago, Biff Tannen said:

Why are they looking to sell? 

They want to split the theatrical/studio production group from the cable networks, but in order to do their fiduciary duty to maximize shareholder value they have to see if the market will provide a higher share price than a split would.

Posted
4 hours ago, Sbbruin said:

Netflix has historically shun the box office for streaming. 

If it was a big enough/profitable enough revenue stream, I bet they would, since besides the revenue, it would be major advertising in theaters for Netflix.

Posted
13 minutes ago, Sbbruin said:

They want to split the theatrical/studio production group from the cable networks, but in order to do their fiduciary duty to maximize shareholder value they have to see if the market will provide a higher share price than a split would.

This isn't a thing. There is a duty of care which involves being informed but corporate directors are allowed to fuck over shareholders all the time. That's the whole point of Delaware. 

Posted
2 hours ago, Sbbruin said:

They want to split the theatrical/studio production group from the cable networks, but in order to do their fiduciary duty to maximize shareholder value they have to see if the market will provide a higher share price than a split would.

This is somewhat right, but the real reason they are in this position is because Paramount put the WBD board in a corner with their unsolicited bid. The spin off by itself wouldn't have triggered Revlon duties, but the board was immediately under tremendous pressure to run a sale process once the bid hit (sure, let's call it a strategic alternative process for fun, but in my opinion there is no chance they continue with the split unless they get really bleak antitrust advice).  

48 minutes ago, elfenix said:

This isn't a thing. There is a duty of care which involves being informed but corporate directors are allowed to fuck over shareholders all the time. That's the whole point of Delaware. 

This is a really good internet post because it is both impressively wrong and yet also self-assured. Bravo! 

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