“This Is A DOG FIGHT” - Paramount HIJACKS Netflix Deal As Warner Bros War EXPLODES
Episode Stats
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Summary
Netflix and Time Warner are all but done with their deal, and now it's time to figure out who's going to get it. Will it be Netflix? Or will it be Paramount Skydance or Netflix? Today's After Show Was Hosted By: Jeff Graham, Sarah Abdurrahman, Jeff Perla, and Charles Hudson
Transcript
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Paramount, you know, we're seeing stories about who's supposed to buy Time Warner.
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Warner Brothers and Discovery will drop Netflix bid.
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And a lot of people, Tom has texted me all night.
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I said, well, I'm going to go to Snyder first on this and then pump and see what we do.
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So confidence has grown inside Paramount Skydance and Warner Brothers Discovery.
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It's deal with Netflix in a matter of days and reopen a months-long bidding war of the company.
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The Warner Brothers, if Warner Brothers does reopen the process, it will have less to do with the recent barely enhanced offer by Paramount,
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where it didn't increase its all cash deal of $78 billion bid, other than agreeing to cover a backup fee to walk away from Netflix.
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Then the worries about valuation and the regulatory uncertainty.
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At the Post reporter last week, the firm known as WBD Warner Brothers, that controls the iconic Warner Brothers studio,
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HBO Max streaming and cable properties like CNN Discovery has been under massive pressure
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to consider the sweet, sweetened offer from Paramount Skydance.
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It's increasingly Warner Brothers investors believe the nearly sealed $72 billion deal from Netflix for the studio
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and the streaming service is facing insurmountable regulatory hurdles, while they also are questioning the valuation of the Netflix offer.
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Again, I think that it's an admission that the industry as it was is failing,
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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.
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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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You know, it's going this way, and the market's like, yeah, I don't think they're going to pick it up.
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There's stuff going on behind the scenes because this has become such a hot-button thing.
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There's a lot at stake for all parties involved, which means it's too much to just simply say, oh, Netflix, you take it.
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It's, again, the competition issue is really what's driving everything.
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The fact that social media, I specifically say YouTube, but it's not just YouTube.
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The idea of appointment television, that kind of, you know, baby boomers do that.
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76 million boomers out there who just pissed off.
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But to all the younger people who have, like, for example, never seen a nightly news report.
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They're not going to sit down at 6.30 p.m. and watch CBS News.
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You think it's going to end up going to Paramount?
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You think it's going to end up going to Netflix?
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I think that all the numbers, everything everyone's focused on, the wrong thing to focus on.
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Larry Ellison personally is worth $225 billion.
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His net worth is almost as much as the entire Netflix business.
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The second thing is you got people running Netflix who aren't the founders.
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You have basically professional CEOs who have come in.
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It's like taking somebody who is like a bodybuilder at the gym.
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They don't look out the muscles, but they whoop your ass, right?
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And so same thing here is you basically have very entrepreneurial family that is just going
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Every time you see a headline come across, what are they talking about?
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How much does diplomacy and building relationship with the current administration matter and deals
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I think that's the entire reason why this is happening.
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I think they were up like 60% that Netflix was going to win a week or two ago, and now
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it totally flipped, and now they're seeing Paramount's going to win.
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Can you go to the peak of Netflix blue, whatever that was, in June, July?
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Without any breaking news happening, though, so I think that's, like you said, behind
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the scenes stuff, and I think that's the forces of the political will behind it.
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Is it, like you're saying, is it the street fight between the companies?
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Well, there's some other things that have happened.
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There's been a couple of deals that occurred where people started to realize, wait a second,
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because there's this whole controversy, and I don't know all the details, right, but there's
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this whole controversy over how much is some of the assets actually worth and shares versus
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But the second you start talking about, hey, we're going to give you some shares, well,
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But there's been some public market deals that have happened where now it's calling into
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question things that Netflix was previously saying.
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And so I think that you have a combination of factors.
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You've got the politics, like they're talking about.
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You've got the characters that are, you know, kind of going through this.
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And then you also have, okay, we're getting more data from the market that maybe it's just
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that, look, these legacy assets might not be as valuable as everybody thought they were.
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And by the way, long term, go 20 years, not five years, go 20 years, 2046.
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Well, you know a great point, Versant, you know, this like CNBC, MSNBC, all they all got
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They basically took CNBC, MSNBC, Golf Channel, all these things.
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And they spun it out and they say, that's our streaming business.
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We don't want to have our movie, film library, all this stuff funding this other stuff.
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So we're going to break these out into two separate businesses.
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That Versant business that got spun out is now down 35%.
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So what they thought it was going to go out at, obviously the market is repricing it 35% lower.
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So then you go and you look at Netflix, you look at these other things.
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And I think to your point, like how much TV do you watch versus YouTube, social media, Netflix?
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No, so it's just like it is less valuable than it was, you know, five, ten years ago.
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It's $75 billion value to Netflix where they want to pick something like this up, Brandon.
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Yeah, no, I just think like if this goes through for Netflix, it kind of creates a fortress for content.
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Like that example, I think it's because it's like that's like a knockoff streaming service, what they've made there.
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But Netflix is Netflix because it has most of the content on it.
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And if they get this, it's like the primary source for content that people actually want to watch.
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So, yeah, I think just because it has more dominance already and this would give it like stuff that doesn't even have.
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So I think it would give it more of that monopoly that we're trying to avoid.
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Warner Brothers discovered just pulled a power move, set the Netflix merger vote to March 20th,
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told shareholders to vote yes on Netflix, also reopened talks with Paramount for seven days.
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Paramount immediately raised their offer from $31,000 to $31,000 up from $30,000 translation.
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Warner Brothers telling Netflix, we're with you while whispering to Paramount,
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show us what you really got, like dating two people at once, classic corporate auction.
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Warner Brothers shareholder will win employees.
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Either way, Hollywood consolidation, fewer buyers, worse deals for talent, higher prices for consumers.
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The trick will be getting this through the Federal Trade Commission hearings.
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You got a laugh from a text joke, not an actual joke.
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So maybe in the future we should test this out more often.
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We have our annual sales leadership summit that is coming up this year.
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And if you're a sales person or a sales leader or a CEO that wants to drive sales and find superstars and develop superstars,
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Which of these two skill sets guarantee success more?
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You being able to recruit rock stars, eights and nines, coming in talented and they change the company overnight.
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Or two, you knowing how to develop rock stars, which of these two guarantee success?
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From my experience, when I was not a rock star and I got lucky and I recruited a rock star, I could never keep the rock star.
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Eventually, I obsessed over developing people to succeed in sales.
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Once I did that, all the rock stars started knocking on the doors because they wanted to work with me.
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This is why once a year I host an event called the Sales Leadership Summit.
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This year we're doing a March 25th through the 27th at Trump Doral.
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If you want to find out how you and your team can attend this event to learn how to become better sales leaders,
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click on a link below, fill out your information.
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That's the QR code and we're going to put the link below.
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Rob, if you can put the link below as well for people to go learn more about it and fill out the information.
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One of our representatives will call you and answer any questions you may have about the event.
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And hopefully we'll see you there March 25th through the 27th at the Trump Doral.
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