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Netflix prices will probably increase though, and they will probably ruin a lot of golden IP like always, so there's that to complain about.
Does anyone who's participated in M&A know how they come up with a breakup fee? I believe this one is $5 Billion (per Bloomberg), and Adobe Figma was $1 Billion. Interested to understand the modeling that goes into it.
Like everything else it's just a negotiated figure. Arguments to and fro would include the likelihood of breakup (such as regulatory risk, unforeseen events), how disruptive the whole process is and also simply how desperate the buyer or seller is. There's no modeling, it's a punishment or incentive. The intention is to inflict financial pain.
Basically, being acquired is a pain in the assets and you want it to be worth your while to pursue it, even if it falls through, otherwise the board is looking at getting replaced.
Consolidations like this were bound to happen. In the mid 2010s we had a good thing, only one streaming platform with pretty much every movie and tv show. Then every studio got greedy and spawned their own platform, forcing netflix to produce their own shows. Now you have 20 tv networks all with their own subscription and all losing money.
Consolidations like this were bound to happen. In the mid 2010s we had a good thing, only one streaming platform with pretty much every movie and tv show. Then every studio got greedy and spawned their own platform, forcing netflix to produce their own shows. Now you have 20 tv networks all with their own subscription and all losing money.
- Netflix gets the movies and contents (HBO, WB) for its streaming service
- The rest (news, reality TV) will be spun off (Discovery Global)