Jon Quast

But it's very hard for it to pull off because it is such a small player.

Netflix is going to be a lot easier.

It's going to have much easier access to the capital to get this deal done.

I'm still not convinced, though, that this is a great move for Netflix.

I will give an example here of Disney acquiring Fox back in 2019.

Disney stock has underperformed since it did that move.

A big part of that is how much leverage it took on to make it happen.

This would be a big move for Netflix.

I don't know where it's going to come up with all the cash either, maybe some debt in that mix, maybe some equity.

I'm not sure where that all comes from, but it's the one that can get the deal done for sure, and it's going to be able to do it a lot faster.

I think that's what it's trying to do by potentially switching that bid to all cash, get the deal done as quickly as possible before too many people ask questions or a dark horse comes in with a competing bid.

I think that that was the exact word I was going to use, is flexible.

You're just so much more flexible when you don't have a high debt burden and when you are generating a lot of cash.

You have a lot of options on the table.

You boost that debt up.

You take the options off the table a little bit.

And I'm not saying that it can't be a market-beating stock, but your attention really becomes more divided on maintaining and running the business rather than how are we going to invest into growing the business for the next big thing.

It's so crazy to even imagine that we're underestimating YouTube right now because of how big it is and how popular it is, but I think that that's the case.

I think that's the case with a lot of Google things.

We'll probably talk about this later in the show.