Scott Galloway

So Netflix, the second biggest winner here.

Let's talk about, and then I think you'd have to say Paramount because

This was an existential must-do for Paramount.

If Paramount hadn't gotten this deal and gotten some scale, they would have been in the company that paid, overpaid for a subscale Paramount.

So their only way out here is scale.

Now, can they ever show dad a return on this investment?

You know, I don't know.

That remains to be seen.

But at least now they are a scaled player company.

in Hollywood, whether they decide to use AI, but they now have the requisite scale to compete with the bigger players.

Right.

So depending on when you time sort of the deal was revealed, whether it was before Netflix entered the fray, they are off kind of 20 plus percent.

But it just says press release that they're walking.

The stock's up 10 percent in the pre-market.

I think we're in agreement here, and that is, as soon as the market looked at this deal, the market said, they're overpaying.

And one of Netflix's advantages is similar to Apple, and that is their culture is so strong internally, and they built such an incredible machine.

They aren't very acquisitive, because as Demodaran points out, two-thirds of acquisitions don't succeed.

One, because testosterone gets involved and they overpay, and it becomes about winning and losing.

And two...

The acquirer overestimates synergies and underestimates the difficulty of integration.