Jason Hall

We're going to get the same opportunity here.

It can take the HBO library, keep that on-platform in markets HBO already operates in, it has a streaming service in, and then, with its international business, take that HBO library and license it to itself.

Guess what?

HBO already has an ad-based tier.

That's an easy thing to keep doing.

It makes all of Netflix's ad inventory more valuable.

These are all really growth-focused things to do.

Now, here's the thing.

It's going to take a lot of debt to complete this deal.

Netflix had about $9 billion in cash at the end of the quarter, nowhere near enough to make this acquisition.

We know that servicing that debt is going to eat into Netflix's free cash flow.

Here's the thing, that number is about $9 billion a year.

over the last quarter, still on the rise, and doesn't include the cash flows of the assets and the operations they're set to acquire.

Overall, here's the thing.

We've seen Netflix lever up in the past.

When it made the move into making its own content, it took out a tremendous amount of debt to do that.

But they've been incredibly disciplined operators.

and they use a playbook around discipline and making the right moves and staying within what you're good at doing, I think they're going to do the same thing here.

The stakes are certainly higher than in the past because of the size of this transaction.

Now, the question, of course, are Warner Brothers Discovery shareholders going to let Netflix follow through and actually close the deal that the two management teams agreed to do?