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Valuetainment

“This Is A DOG FIGHT” - Paramount HIJACKS Netflix Deal As Warner Bros War EXPLODES

19 Feb 2026

Transcription

Chapter 1: What recent developments have occurred between Paramount and Warner Bros.?

0.031 - 22.083 Patrick Bet-David

Paramount, you know, we're seeing stories about who's supposed to buy Time Warner. Paramount is out, right? Oh, Paramount's not going to be getting it. It's probably going to be Netflix. And then these stories start coming. Paramount grows more confident. Warner Brothers and Discovery will drop Netflix bid. And a lot of people, Tom has texted me all night.

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22.184 - 38.168 Patrick Bet-David

He said, let me tell you what's going on here. I said, well, I'm going to go to Snyder first on this and then pump and see what we do. So confidence has grown inside Paramount Skydance and Warner Brothers Discovery. It's deal with Netflix in a matter of days and reopen a months-long bidding war of the company.

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39.851 - 62.877 Patrick Bet-David

If Warner Brothers does reopen the process, it will have less to do with the recent barely enhanced offer by Paramount where it didn't increase its all-cash deal of $78 billion bid, other than agreeing to cover a breakup fee to walk away from Netflix, then the worries about valuation and the regulatory uncertainty at the Post reported last week the firm known as WBD Warner Bros.,

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64.038 - 66.321 Patrick Bet-David

that controls the iconic Warner Brothers studio.

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Chapter 2: How is the Netflix merger impacting Warner Bros. and Paramount's strategies?

66.902 - 89.533 Patrick Bet-David

HBO Max streaming and cable properties like CNN Discovery has been under massive pressure to consider the sweetened offer from Paramount Skydance. Increasingly, Warner Brothers investors believe the nearly sealed $72 billion deal from Netflix for the studio and the streaming service is facing insurmountable regulatory hurdles while they also are questioning the valuation of the Netflix offer.

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89.613 - 91.075 Patrick Bet-David

Jeff, where do you stand with this?

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91.055 - 111.89 Jeff

Again, I think that it's an admission that the industry as it was is failing, that there's enough technological change and evolution that they're trying their best to keep the horse alive as long as they possibly can, and the only way to do that is to create streaming libraries that are big enough to survive the fact that they have all just junk.

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111.91 - 122.88 Patrick Bet-David

But why do you think this happened, though? It's going this way, and the market's like, yeah, I don't think they're going to pick it up. I don't think Paramount's going to pick it up. And then all of a sudden, oh, come back here. No, we should look at Paramount. Why do you think that happened?

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122.9 - 132.688 Jeff

There's stuff going on behind the scenes because this has become such a hot-button thing. The government's getting involved. We've got lawyers involved. There's a lot at stake for all parties involved, which means,

Chapter 3: What factors are influencing Paramount's growing confidence in negotiations?

132.668 - 148.324 Jeff

It's too much to just simply say, oh, Netflix, you take it. We'll be fine. We'll go someplace else. Again, the competition issue is really what's driving everything. The fact that social media, I specifically say YouTube, but it's not just YouTube.

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148.344 - 150.346 Patrick Bet-David

You would rather have it go to YouTube.

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150.366 - 165.122 Jeff

No, I'm saying YouTube is eating their lunch. Social media is eating their lunch. The idea of appointment television, that kind of, you know, baby boomers do that. Most young people... Appointment television. That's what they call it. That's what they call it. That's not my term. They call it appointment television.

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165.162 - 168.486 Patrick Bet-David

The idea that somebody sits down... About 76 million boomers out there who just pissed off.

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Chapter 4: How does regulatory scrutiny affect the Warner Bros. and Netflix deal?

168.506 - 180.461 Jeff

I know. I'm sorry. But to all the younger people who have, like, for example, never seen a nightly news report, they're not going to sit down at 6.30 p.m. and watch CBS News. That property is dead.

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181.222 - 188.19 Patrick Bet-David

It used to be cash cow. You think it's going to end up going to Paramount? You think it's going to end up going to Netflix? What are your thoughts? I think that...

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189.368 - 196.761 Unknown

All the numbers, everything everyone's focused on, the wrong thing to focus on. There's only one thing that matters. Tell me. Who are the people? You're going to bet against the Ellisons?

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Chapter 5: What role does competition play in the current media landscape?

198.163 - 218.276 Unknown

They got Netflix's market cap is $325 billion. Larry Ellison personally is worth $225 billion. His net worth is almost as much as the entire Netflix business. So they got the money. The second thing is you got people running Netflix who aren't the founders. You have basically professional CEOs who have come in. So you're an adult. Are you talking about Ted? Yeah, they're not the founders.

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218.517 - 227.649 Unknown

They're not. But Reid is still involved, right? That's fine. But you're in a dogfight. You need people who know how to fight, right? It's like taking somebody who is like a bodybuilder at the gym.

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Chapter 6: How are changing viewer habits influencing media valuations?

228.109 - 243.909 Unknown

They look real good, right? They got big muscles and stuff. Fight a UFC guy. You fight a street fighter. They don't got the muscles, but they whoop your ass, right? And so same thing here is you basically have very entrepreneurial family that is just going to keep fighting, and you see it. Every time you see a headline come across, what do they talk about? Let me ask you guys this.

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243.929 - 254.644 Patrick Bet-David

We're going to go red alert. We're going to go real hard at this. Here's a question for you. How much does diplomacy and building relationship with people the current administration matter in deals this size?

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254.664 - 255.285 Rob

10 out of 10.

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255.546 - 256.087 Patrick Bet-David

You think so?

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Chapter 7: What are the implications of potential layoffs in Hollywood?

256.107 - 256.928 Patrick Bet-David

Yeah. Tell me why.

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256.968 - 266.626 Rob

I think that's the entire reason why this is happening. Like, look at the Calciats. I think they were up, like, 60% that Netflix was going to win a week or two ago, and now it totally flipped, and now they're saying Paramount's going to win.

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266.646 - 266.947 Patrick Bet-David

Really, Rob?

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266.967 - 273.294 Rob

Do you have the updated Calciats? Yeah, now it says Paramount is the favorite. Is that it? Yeah.

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273.314 - 277.138 Patrick Bet-David

Who will successfully take over Warner Brothers? So red is who? Red is Netflix?

277.459 - 281.963 Unknown

No, none before July 2027 is red at 15%. Netflix at 36.4%.

Chapter 8: What does the future hold for Warner Bros. and its competitors?

282.324 - 284.486 Unknown

Paramount at 49.8%.

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285.127 - 299.042 Patrick Bet-David

Can you go to the peak of Netflix blue, whatever that was in June, July, January? Right there, yeah. Yeah, it was like two weeks ago. Wow. 72% and Paramount was at what? Does that say 16? 16.2% for Paramount. And now it's what?

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299.022 - 303.412 Unknown

Today it is 49% Paramount, Netflix 36.3.

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303.994 - 310.99 Rob

Without any breaking news happening, though, so I think that's, like you said, behind-the-scenes stuff, and I think that's the forces of the political will behind it.

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311.251 - 317.385 Jeff

So is it a government backlash? Is it a public backlash? Is it, like you're saying, is it the street fight between the companies?

317.365 - 332.706 Unknown

that have happened, there's been a couple of deals that occurred where people started to realize, wait a second, because there's this whole controversy, and I don't know all the details, right, but there's this whole controversy over how much is some of the assets actually worth and shares versus cash. Cash is king, $1 equals $1, right?

332.906 - 347.11 Unknown

The second you start talking about, hey, we're going to give you some shares, well, is that share worth $1, worth $3? There's a bunch of debate about that. But there's been some public market deals that have happened where now it's calling into question things that Netflix was previously saying. And so I think that you have a combination of factors.

347.13 - 361.497 Unknown

You've got the politics like they're talking about. You've got the characters that are kind of going through this. And then you also have, okay, we're getting more data from the market that maybe it's just that, look, these legacy assets might not be as valuable as everybody thought they were.

361.662 - 377.501 Patrick Bet-David

And by the way, long term, go 20 years. Not five years. Go 20 years. 2046. What does the media look like? What does Netflix look like? What does YouTube look like? What does Time Warner look like? What do these guys look like?

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