Dan Caplinger

In practical terms, it's always a little bit more difficult once you have a signed agreement at the end of what has already been this auction bidding war process.

Always harder to undo whatever that decision was, even if a better deal comes in later.

I think that's where we are at this point.

Just bear in mind, I think, as you point out,

The terms of the two offers were not directly comparable, but there's certainly an argument to make that when Warner Brothers finalized an agreement with Netflix, there was a credible argument that Netflix's offer was the higher-priced deal.

And so, I think that it's interesting, as Jason pointed out,

The way that Paramount has decided to do this hostile tender offer, it really puts the question directly in the hands of the shareholders in both directions.

Shareholders were already going to have the ability to vote yes or no on accepting the Netflix acquisition.

Tendering your shares is another way of doing it, but basically, it's the same calculus.

If you tender your shares to Paramount, you want the Paramount deal to go through.

If you don't tender your shares to Paramount, you're waiting to send those shares to Netflix, assuming that the deal gets approved and all of that.

You ask, where does Warner Brothers see the value in the Netflix bid?

I think if you go beyond price, what to me is the most intriguing thing about this is that key difference

between the Paramount offer and the Netflix offer.

Paramount wants the whole thing, every piece of Warner Brothers operations.

Netflix, on the other hand, singled out certain operations.

They want the studio, they want some of the cable business, but not all of the cable business.

And that is something that I think is kind of an intriguing thing.

And I think that some Warner Brothers executives

may have been intrigued by the idea of really getting almost to turn back the clock and recreate that old independent discovery communications-looking cable business as that shell that is going to be not acquired by Netflix.