Rachel Warren

And if the deal were to be blocked by regulators, which is a question, as it always is, Netflix could be liable for a $5.8 billion breakup fee.

Those are some of the key figures there.

I do think that shift to an all-cash deal, it's a bold move.

It prioritizes their securement of the acquisition.

I think the risk is something of a trade-off.

There might be some short-term financial pressure, but the idea is this is going to consolidate Netflix's market power, help them achieve their long-term content goals.

I still think the acquisition is good news for the business, but investors should be aware of exactly what it entails.

I will say, I do think that this acquisition as well is going to be really important for their growth story moving forward.

This is an exceptional and storied library of content that they acquire should this Warner Brothers Discovery acquisition go through.

I think that that could also provide a lot of the growth that investors have come to miss from the business over the last few years, particularly as they got used to that growth story during the pandemic era.

Obviously, Netflix's internal content generation machine is exceptional, but they have historically also relied on acquisitions to drive that growth.

I think acquiring a library of this kind could be really integral to that.

I think that's something for investors to really watch closely.

Going back to those Japanese government bonds, the 40-year yields breached 4% for the first time in over three decades.

This is broadly because the Bank of Japan is tapering its bond purchases.

There's concerns over a massive new stimulus package worth about 21.3 trillion yen.

It's worth noting Japan remains the largest foreign holder of U.S.

treasuries.

both in the US and Japan.

And so there's been some concerns about unbridled debt issuance that could cause investors to demand higher yields to hold government debt.