“This Could KILL CNN” - Paramount-Warner Merger Creates 200M Subscriber Streaming GIANT
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Summary
Ted Sarandos had a chance to make a deal with the White House, but it was not to be. Now what does that mean for the future of the deal between Netflix and HBO? And what does it say about the deal and what it means for Netflix's future in the entertainment industry? Today's After Hours with John Rocha, Sarah Downey, and Mark Cuban break it all down.
Transcript
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So Paramount merger could create streaming behemoth with 200 million subscribers.
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And if they combine HBO Max Paramount to challenge Netflix, which would be the plan.
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Paramount Skydance announcing plans to combine Paramount Plus and HBO Max.
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Just three days ago, HBO's parent company, Warner Brothers Discovery, agreed to be acquired by Paramount.
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CEO David Ellison says the combination will boost their subscriber base to 200 million.
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Federal regulators still need to approve that merger.
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That's a real number right there while this is taking place.
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And Paramount, debt to its $79 billion after Warner Brothers deal, no plan to sell cable assets.
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And Warner Brothers Discovery CEO Zaslav calls Paramount pivot whiplashy as a $110 billion deal takes shape.
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So, Tom, as we're going through this next phase, do you think there's going to be anything that's going to prevent this from happening?
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Or it's pretty much Paramount's property, that's it?
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Well, if you listen to Netflix and Ted Sarandos, well, I didn't end up meeting at the White House, and I think the president had his thumb on the scale.
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But Ted is exactly, you look at his quotes and tell me, does that sound like a guy who is a little bitter and maybe lost the deal?
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I haven't seen it to make a real judgment on it.
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Look at Ted Sarandos' quotes in the last 96 hours.
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He actually went to the president and was told, I'm sorry, sir, your meeting has been canceled.
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So the president canceled the meeting last minute.
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Shortly after arriving at the White House that his meeting was canceled, he's in the waiting room.
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And so things like this, he was saying, was I ever going to meet with Trump?
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He had a, you know who they had set him up with?
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Well, why don't you talk about your concerns in the Federal Trade Commission with the Attorney
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And he wasn't going to get the meeting with the president.
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And all the media was saying, he's going to the White House.
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It says that Trump had no desire to really listen, give ear to Netflix.
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You can talk about desires and intentions later.
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But there was, the president was busy with Iran and planning.
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I mean, Trump made it pretty apparent that he didn't want to be involved in this deal.
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You know, you want to make excuses for why you didn't get the deal, right?
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And so I think that's really what it comes down to.
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You know, from an interesting lens, Jeff Park put out this paper, and he called it the end
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of the value, the death of the value investor and the rise of the ideological investor.
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And he talked about how the Benjamin Graham world, the Warren Buffett world is gone.
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So Bud Light puts Dylan McGee, stock price goes down, and Cracker Barrel, right?
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And so he talked about, like, Sidney talks about great genes, and then American Eagle
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And so when I look at this, I like some of the shows on Paramount.
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So from an ideological side, to me, you know, it's like, wow, I'm kind of glad that deal
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But I would just say, I would say it's loser talk.
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The deal, they were outbid, and that's kind of all there was to it.
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Well, I mean, if you look at the history of Netflix, Obama's, you know, politics, Suzanne
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Rice, you know, you kind of know, no matter how much they try to play politics.
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By the way, did Netflix give a million dollars for the inauguration?
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It's like everybody went to a bar mitzvah where you didn't like the kid, but you gave
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So inauguration, there's no evidence that Netflix donated a million dollars.
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Other major tech companies, exactly, including Amazon, Meta, OpenAI, all gave a million dollar
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Well, I mean, you have to realize, as crazy as it sounds, these things matter.
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They're watching to see, hey, are you going to be a, because it was like, well, no, we
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We don't want to say that we're on this side or this or that.
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And I know it's like, well, Pat, that's exactly the problem.
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Until you get rid of it, both sides are going to be doing it.
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By the way, Jake Tapper came out and said the following about, you know, CNN will be affected
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by Paramount's looming takeover of the network.
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Moments ago, Netflix said it is declining to raise its offer for the purchase of Warner
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Brothers Studios and HBO following the Warner Brothers Discovery Board's determination that
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Paramount, which is not just going for Warner Brothers Studios and HBO, but also the whole
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angelata, including us here at CNN, Paramount has submitted a superior offer, according to
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As I've noted, Warner Brothers Discovery is the parent company of CNN.
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So let's get right to CNN chief media analyst Brian Stelter.
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Ted Sarandos and others in Netflix made it very clear they really wanted Warner Brothers
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In this corporate tug of war, it seems Netflix has suddenly let go of the rope.
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There's a lot, of course, that could still happen here.
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But the big news this afternoon is that Paramount suddenly is in a much stronger position to
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take over CNN and the rest of the Warner Brothers Discovery company, which includes HBO and the
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CNN Insider told Fox News Digital, which is kind of weird, but CNN Insider told Fox News
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A second CNN Insider staffer said, a mix of despair, apprehension and curiosity.
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Look, I think this is a place that has gone through a lot, a lot of mergers in the past
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The Insider said, I think there's an underlying fear of mixing two news divisions.
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Of course, they're going to be worried about it.
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Tom, do you think there is going to be a massive restructure of getting rid of certain people
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So it's the, and then all of a sudden he pops up on the news.
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They read all the things when they have talked deep.
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You can read some of the things that they've said, and they're looking at this.
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They didn't buy this not to do anything with it.
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They were going to be left so that Zazz could put them together in a tracking stock, throw
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it to the dogs on the market, and watch it like a cheap SPAC start at 10 and slowly drift
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And there was not a lot of, there's no cash being formed.
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They're going to say, okay, CNN Plus didn't work because old school tried to build an OTT
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They went out and paid all this money to Chris Wallace.
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I mean, you and I talked about this, Pat, remember?
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And I'm like, Pat, if you were running this, this wouldn't be happening like this.
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There would have been so many other ways to make money on this.
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They have been cutting contracts at CNN for two years.
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And Zazz has been going to the Allen Conference.
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And at the Allen Conference, it's like Zazz walking up and opening his jacket.
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Like you're walking out of the street in New York.
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You know, it's like he's trying to sell CNN, and he hasn't been able to get any buyers.
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And strong reports indicated he was reminding people that, like, Caitlin Collins was on a
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She wasn't on one of these legacy 20-year super expensive deals trying to sell it.
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I think the old guys, like what we're hearing here, Brian and our friend Tepper, you know
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I don't think, I don't think, I think the people you have to get, if you're building a
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news station, you don't get rid of center left, center right, middle.
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You don't, you get rid of the, there was a girl on CNN the other day I was watching this.
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Rob, I don't know if you've seen this or not.
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They tried to correct her over and over and she eventually was like, she lost her shit.
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And CNN's like, listen, you can't talk like that.
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You have to get rid of the people that are saying stuff that makes absolute no sense.
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But Jeff, what do you think is going to happen with this?
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You think CNN's going to go through a massive, if the deal closes, how nasty do you think
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I mean, Tom, you just spent five minutes talking about how CNN is valueless.
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And the value is not going to suddenly rise in the future.
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Everybody's moving away from cable television and cable news.
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You take whatever parts are good enough to move to other parts of the division.
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And CNN as a brand, let's face it, completely tarnished.
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Like, certainly the people on the right, somebody on the right is never going to watch CNN again.
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I think six months ago he signed a new contract with them.
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He was here on the show and he told us this like three months ago.
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I think eventually what happens is Paramount says we're done with CNN.
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Do you think a Paramount takes a guy like Scott and says, why don't you run it and do what they
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did to CBS by bringing Barry Weissens and Barry from Free Press, you run it.
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You take somebody like Scott and make him do what you're doing.
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You say, oh, we're going to build a social media new empire around it.
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You take the talent and build up the infrastructure around it.
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You don't use the old legacy framework, which is no longer viable.
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They're like, hey, how come you don't come back to our Fox anymore?
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I don't mind going to these shows, but here was my problem.
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I know who the audience is, and you guys don't cut the clip on YouTube or X.
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It's a waste of my time to sit till 930 to do a four-minute clip, and then all of a sudden
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you're not posting a clip for two or three days.
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I said, they have to also realize what they need to do to attract the younger people to
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come on, that you need to get to their audience where their audience is at.
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Some that don't, why would it continue coming back on?
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Well, I would say the point that Jeff made, I mean, that model is dead.
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And what I think about specifically is the network model.
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And so where it lives supreme is at the airport or, you know, where it is.
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In the hotel lobby, I was, you know, I had to go get some passport stuff.
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I'm sitting in the office, and it sits there all day, and it just runs.
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And then the day of having a network that just runs 24-7, and I sit there and watch the
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Yeah, like I said, the old people, they have their TV on all day or at the airport.
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That's the only value that's left is pharmaceutical ads to boomers.
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As soon as the, you know, demographic shift, boomers start to die off.
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It's probably a fraction of what CNN would cost to run.
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No, business-wise, it doesn't make sense on what they're doing.
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I'm curious if they're actually going to do what you're talking about, which is shutting
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And if they do, obviously, you know, it'll be a statement to the entire marketplace.
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So today at 6 o'clock news, we found out that I'm being a teleprompter host.
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And then you go to all these tough guys, Ilhan Omar and Deer and Mehdi Hassan, and they
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And the part I'm excited about is how that transition is going to take place and how many
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Like you guys, independently, you run your own shows.
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You have a few hundred thousand listeners that follow you.
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Both of you got almost a million people that follow you.
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Your channel, Wealth is Engineered, Mark Moss, Reasonable.
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And then Jeff Snyder's channel, Eurodollar University.
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And people are showing up from around the world saying, hey, what does he have to say?
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So if you enjoy what Mark and Jeff had to say, we're going to put the link below.
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And Tom's got a burger episode that's coming up that I keep being taught.
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So when it does come out, folks, we're going to share with you as well.
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