Ed Ludlow

And of course, Bloomberg Screen Times managing editor, Lucas Shaw, also over in Los Angeles.

Welcome to our Bloomberg television and radio audiences around the world for an interview with Netflix co-CEO Ted Sarandos.

And Ted, good morning to you.

The less than straightforward question that everyone has, of course, is what happens next.

But I wanted to put it to you like this.

Does Netflix have the balance sheet, the sort of financing flexibility and the will, really, to amend everything

improve, boost its bid for Warner Brothers Discovery's studios and streaming business if needed.

Ted, on those headwinds you mentioned, there are a portion of the Netflix investor base and the Warner Brothers Discovery investor base that kind of see this as defensive by you.

And look at growth, right?

Engagement growth in the second half of last year, such as it was.

What would you say to those people that this is response to that growth rate that you've experienced more recently as opposed to something proactive and strategic?

Ted, I appreciate there's a process here and thank you, you know, kind of earlier for outlining it right through February 23rd.

But before that, you know, the section of the investor base that basically thinks Netflix should walk away, look at the regulatory road ahead.

They look at the integration risk and then like what Netflix is, a big global technology company, as opposed to being something sort of micro focused on Hollywood.

Yeah.

Right, and so answer those investors, right?

Why are they wrong that actually there is a longer list of reasons to walk away than stick with it at this juncture?

Ted, you are competing in a politically sensitive media deal.

There is reporting and we are in a time where the Ellisons and their relationship to the Trump administration has been discussed.

It's also reported, of course, that you met with the president, I think, on November 24th.