Caroline Hyde

This event is proudly sponsored by MasterCard.

Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco.

Plus, continued clash between the US and the EU on free speech as the European Union finds Elon Musk's X platform $140 million.

And this is for streaming.

This is for studios only.

Earlier today, Ted Sarandos spoke on a conference call, Ed, about this deal.

Here's what he had to say.

I know some of you are surprised that we're making this acquisition, and I certainly understand why.

Over the years, we have been known to be builders, not buyers.

We already have incredible shows and movies and a great business model, and it's working for talent, it's working for consumers, and it's working for shareholders.

But this is a rare opportunity that's going to help us achieve our mission to entertain the world and to bring people together through great stories.

Bloomberg's Lucas Shaw, who leads Bloomberg's coverage of media and entertainment, joins us now.

And Lucas, those exact words, builders, not buyers, was exactly what Greg Peters, the other co-CEO, said to you on a stage, but a few months ago.

Did it take you by surprise?

By this point, no.

It's funny that you ask that.

I've spoken with a few different people at Netflix this morning, and they all asked me if I was surprised or shocked.

And it's true that they've never done anything like this before.

It represents a huge change for the business.

If this deal gets through, and I know we may get there, it'll double in size pretty much as soon as they add all these folks.