Rachel Warren

It's also worth noting that ad revenue in 2025 was about two and a half times more than in 2024.

It's a different lever for growth than we've seen for the business in the past.

This is a more mature company than we knew several years ago.

But I think that if you are a long-term shareholder in this business, this is a quality company, they're a leader in their respective space, they continue to be very well financially fortified.

I think that that is something that can give us a lot of confidence in where the business is going as they evolve into their next growth story.

Yeah, you're absolutely right on that.

They've officially amended their bid for Warner Bros.

Discovery to an all-cash offer of $27.75 per share.

It values the transaction at about $72 billion or about $83 billion, including debt, which is notable.

This is very much a strategic shift to lock in a deal with Warner Bros.

Discovery's board, which really unanimously supports the offer.

And as you noted, that all-cash structure removes the volatility of Netflix's stock price from the deal equation.

It provides shareholders of Warner Brothers with immediate, predictable value.

Now, the deal, of course, is designed to give Netflix ownership of an incredible content library, ranging from HBO Max to Harry Potter, Game of Thrones, and so forth.

And it's also worth remembering, Warner Brothers Discovery board members, they have rejected the Paramount offer.

They viewed it as a much riskier leveraged buyout.

The Netflix deal, I think, is broadly viewed as a better capitalized one.

It's got a much lower leverage ratio of under 4%.

It's, I think, important to also highlight that all-cash bid requires Netflix to increase its bridge loans from about $34 billion to about $42 billion.

So, it does add significant debt to its balance sheet.