Travis Hoium

Are we going to continue debating this for the next six months?

Lou, let's go through some of these details.

Paramount Skydance is gonna be paying $31 a share for Warner Brothers Discovery.

The prior agreement was $27.75 per share from Netflix.

That was cash.

The difference between those two numbers is this spinoff of some cable assets that was an unknown value, but could be more than the delta there, $3.75.

It could be worth less.

Is this actually a better deal for Warner Brothers Discovery?

It seems like we're increasing uncertainty with, does this deal actually close?

We'll get to some of the

huge weight that's hanging over this from a regulatory standpoint in a second.

But just from a numbers standpoint, why does this make sense?

Lou, I also want your thoughts on some of these other details.

There's the $31 per share in cash, but there's what's called, I'm reading from the press release here, a daily ticking fee equal to 25 cents per share per quarter beginning September 30th, 2026, as well as a $7 billion regulation or regulatory termination fee that would be payable if regulators block the deal from

That seems like this deal could get really expensive.

And by the way, Paramount Skydance is only about a $12 billion company today.

So has Larry Ellison just swooped in and said, hey, I'll write a blank check as long as we get this out of the hands of Netflix?

John, Netflix does now get to go back to kind of being what they were.

I agree with you that this was probably a headache that they didn't even really want to take on.

But it was better than creating a new competitor with Warner Brothers Discovery and Paramount combining.