00:00:16.240Warner Brothers' Discovery on Tuesday reopened the door to a takeover by Paramount's guidance.
00:00:20.920That is after Paramount raised its offer for the studio to $31 per share.
00:00:24.960The intense bidding war for the far behind Batman and Harry Potter has reached a fever pitch.
00:00:28.980With the board signaling that Netflix may lose its place as the preferred suitor.
00:00:33.360In its revised bid, Paramount also raised the termination fee it would pay should the deal fail to gain regulatory approval to $7 billion, up from $5.8 billion.
00:00:41.740It also agreed to pay Warner shareholders $0.25 per share per quarter for every quarter beyond September 30th that the deal does not close.
00:00:48.920The rival bidder also agreed to contribute more equity should banks raise concerns about Paramount's ability to finance a deal when it closes.
00:00:54.540Warner's board said it has not determined whether the revised proposal is superior to a merger with Netflix, but said directors would give it further consideration.
00:01:02.380Should a superior deal emerge, Netflix has four business days to revise its offer.
00:01:06.540The streaming giant has offered $27.75 per share in cash for the movie and television studios, its catalog, and HBO Max streaming service.
00:01:14.680None of the firms involved commented on reports of the new offer.
00:01:18.520Yeah, so the $27.75 at $72 billion and the prior bid by David Ellison was $30 a share at $77.9 billion.
00:01:26.640Tom, what's going to happen here, Tom?
00:01:30.020Netflix wants to buy the library, and then Warner Brothers Discovery will take the cable nets, most notably CNN, and put them in a small public stock and throw it out on the stock market where it will languish during the conversion and the deterioration of cable subscribers.
00:01:46.380That is my supposition, but many, many analysts are behind me on that, and that is, okay, all these cable nets go here and Netflix gets the library.
00:02:00.780Paramount is saying, no, no, we'll take the whole thing, and we'll take the whole thing for $31 a share.
00:02:05.080You don't have to spin out the cable nets.
00:02:08.900People in Hollywood have been behind the scenes.
00:02:12.500They don't want Paramount to do that because they don't want to have CNN moderated or worse, eek, gad, made slightly conservative, which is what they've seen happen to CBS.
00:03:14.880And so this is what's going on right now, and industry insiders all wanted it to happen.
00:03:20.700However, it is also a truth, and the Federal Trade Commission feels this way, and it's not a bunch of Trump people that say, oh, Larry Ellison is the friend of Trump's.
00:03:41.700You just brought up the defense industry, and you did a story on this podcast over maybe two years or less ago about how there was 15 major defense contractors,
00:03:52.720and all of a sudden they'd end up down at Northrop Grumman, Boeing, and a couple friends, and that's why there's no choice for the procurement officer at the Navy,
00:04:03.220and you have to pay whatever they'll charge you for a hammer.
00:04:05.840This is why Federal Trade Commission said, look, the Netflix library going to Warner, going, you know, to WBD, consolidating it is not good.
00:04:17.260It'd be better if a third party emerges in all of this.
00:04:22.080So you've got Disney over here, you know, Paramount, and Warner Brothers over here, and Netflix over here.
00:04:33.140Well, the consolidation is offering less options for creatives to market things.
00:04:40.740And I think the bigger picture here that I worry about is that, you know, our soft power, Hollywood, has been one of our, you know, big exports.
00:07:32.000I think the bigger disruption here with all of this stuff that's going on to me, I think the bigger disruption is the independent creators.
00:07:40.740I think it's the young guys that are coming and creating content.
00:09:18.240It's a different guy that he literally just brought on board.
00:09:20.740And they're talking about what they're going to be doing.
00:09:22.720Company's valued right now anywhere between $5 to $10 billion.
00:09:25.240So I think no matter what they're talking about, Mr. Beast is going to build something that's probably going to be worth a half a trillion dollars, okay, over the next 5, 10 years.
00:09:35.880So all this stuff that they're talking about, disruptions coming from the independent content creator and how they're going to control them, I don't know how you're going to control them.
00:09:44.560I don't know what you're going to do with those guys.
00:09:46.540I think that is coming and it's going to be exciting in the game.
00:09:49.080Different types of sales leaders I've worked with the last 20 years.
00:09:51.940One of them are those that are boss, that are telling you what to do.
00:09:54.500One of them is one that wants to be a friend.
00:09:56.240He wants to say, hey, Johnny, let me help you get to this next level.
00:09:58.800And then the other one is the leader, the leader that's sitting down with you, accountable, challenge, pushing you.
00:10:03.060You can do more expectation, business planning.
00:10:05.380Each one of them has pros and blind spots.
00:10:08.940Once here I host an event called the Sales Leadership Summit.
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00:10:21.260you have to do a minimum of a million dollars a year and five salespeople to qualify to attend this.
00:10:26.040So if you're someone that's watching and saying, I think I'm like a boss, I think I'm like a friend, I think I'm a leader, I want to find my blind spots,
00:10:31.860click on a link below, fill out the information.
00:10:33.740One of our consultants will get a hold of you.