Emily Flippen

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For Asit Sharma, Donato Riccio, and the entire Motley Fool Money team, I'm Emily Flippen.

We'll see you tomorrow.

Netflix is potentially spending over $70 billion to either cement themselves as the global media giant or show their hubris.

We're decoding it all today on Molly Fool Money.

Today is Tuesday, December 9th.

Welcome to Motley Fool Money.

I'm your host, Emily Flippen, and today I'm joined by Fool analysts Jason Hall and Dan Kaplinger to discuss Netflix's agreement to acquire Warner Bros.

Discovery Studio and streaming business, as well as, of course, Paramount's hostile retaliation bid and how investors can really evaluate the veracity of these mega-mergers.

We're going to be unpacking what exactly Netflix is buying for north of $70 billion, why Warner Brothers not only wants to sell, but why they picked Netflix amongst a slew of other options, and how the market is reacting to the news.

And then, of course, we're going to zoom out to evaluate if this deal rhymes a little too closely with some of the entertainment mega-mergers of the past and help build a framework – yes, we do love that word – for judging big acquisitions anywhere in your portfolio.

Oh my gosh, guys, I don't even know where to start.

I mean, look, chances are, if our listeners are listening to this podcast, they've already heard of this mega merger, right?

If not as a consumer, at least as an investor, since I know we've already discussed it a couple times here on Motley Fool Money.

But I think we're going to be taking a bit of a deeper dive today.

Still, for any uninitiated, Netflix is acquiring the film and TV studio segments of Warner Brothers Discovery, which includes HBO and its massive IP library.

Jason, I want to pass it off to you first.

Netflix is coming into this deal with over 300 million global subscribers and a fundamental business performance that has just been really stellar.

They've been expanding margins, double-digit sales growth.