Ed Elson

As you point out, this is a company that was trading at $7 to $10 a share as recently as a year ago, and now a company's come in and decided to buy it for $31 a share.

That is...

ridiculous and the reason that they're willing to do that is because it's the son of larry ellison who's the founder of oracle who is a multi multi multi-billionaire and that's the only reason that this is even possible in the first place is you've got a guy who doesn't really know what to do with his tens of billions of dollars and that's how he's putting up the money for this deal which is why he's willing to pay such an irrational price

for it, and it would be dumb for Netflix to pay that much money.

And they said that.

They said, this is an irrational, this is a ridiculous price, we're not going to pay it.

Having said that, though...

We should also acknowledge that since this all unfolded, Netflix stock is still down.

It's up since in the past month or so.

But remember, this all started to go down before that.

This started to go down in December.

From the time that Netflix was announced as or revealed as one of the potential buyers of Warner Brothers, the stock has slid from 100 to around 85.

And they have lost almost $200 billion in market cap since that moment.

Now, is that purely because of the Warner Brothers deal?

I'm not so sure.

I think there are probably some other forces at play there too.

But it's hard for me to position Netflix as a total winner coming out of this, considering the fact that before Netflix and Warner Brothers were even in the same sentence, Netflix was trading at above $100 a share.

They're the winner of the week or the month for sure.

It's the image of Ted Sarandos feeling a disturbance in the force.

Taking a seat.