Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Single best idea, the
Speaker 1: single best idea is if you book quality people, somehow
Speaker 1: they dovetail with the news flow. To this day, I
Speaker 1: do not understand how that happens. But if you plan
Speaker 1: on doing a follow up on Netflix and you have
Speaker 1: a guest with an incredibly difficult schedule and they say, yeah,
Speaker 1: we can come into the vicinity at nine o'clock and
Speaker 1: three minutes before they get on littlely they're sitting up
Speaker 1: getting wired up into the studio, you come out with
Speaker 1: a hostile takeover. This is paramount going for Netflix. Keith
Speaker 1: Rogenothen of Bloomberg Intelligence owns the high Ground. We asked
Speaker 1: her on the surprise of the moment.
Speaker 2: Yeah, not surprised at all, Tom, I mean we knew
Speaker 2: they were not going to go away easily. You know,
Speaker 2: there was so much drama last week, even as we
Speaker 2: knew that Netflix was kind of closing in on the
Speaker 2: Warner Brothers deal. But just from you know, first take,
Speaker 2: so basically even last week we know that as Netflix
Speaker 2: kind of made its offer at just just a little
Speaker 2: bit shy of twenty eight dollars to share for the studio,
Speaker 2: Paramount had actually made the offer for a thirty dollars
Speaker 2: cash bid for all of Warner Brothers Discovery. So the
Speaker 2: thing is, when you kind of compare the two offers here,
Speaker 2: the Netflix offer is still superior because it's only for
Speaker 2: part of the company, the remaining part of the company,
Speaker 2: which is the TV networks business. We value it at
Speaker 2: about four dollars a share, So you put the value
Speaker 2: of the total Warner Brothers Discovery assets, the entire portfolio
Speaker 2: at thirty two dollars, so right off the bat, slightly
Speaker 2: lower than what Netflix is offering.
Speaker 1: Of course, sounds like a conversation back a couple decades ago.
Speaker 1: All of a sudden, you know, maybe we'll hear from
Speaker 1: someone from Drexel Burnham Lamber here to help us out.
Speaker 1: Gee through Raganov and there on Netflix, on Warner Brothers
Speaker 1: Discovery on Paramount as well. We continue the conversation Gee
Speaker 1: through Raganav and looking at the dreaded word synergy.
Speaker 2: The synergies. So you know, when you kind of think
Speaker 2: about Netflix actually laid out two to three billion dollars
Speaker 2: in synergies, and that's the only part of the operation
Speaker 2: that's only with you know, the studio and streaming business.
Speaker 2: And really all of those synergies are just going to
Speaker 2: come from the streaming business. You know, because you have
Speaker 2: HBO Max, you have Netflix. You don't want to run
Speaker 2: two separate services necessarily, So it's combining the text tax.
Speaker 2: In the case of Paramount, there's a whole lot more
Speaker 2: of synergies that can be extracted. You have two separate studios,
Speaker 2: you have two separate or many streaming platforms, you have
Speaker 2: two different TV networks divisions. So when you kind of
Speaker 2: look at the savings potential there, obviously it's huge. It
Speaker 2: just means that Paramount can actually go much higher. In
Speaker 2: terms of a bit.
Speaker 1: Keitha raghenathen and she will have an eventful day, week
Speaker 1: and months. Here is a soap opera. I love it.
Speaker 1: I don't know if any of these players are involved
Speaker 1: in soap operas, but it is a soap opera. Shout
Speaker 1: out single best idea. Shout out to Lukashaw With definite
Speaker 1: of reporting this weekend for Bloomberg News, we reported of
Speaker 1: the conversation with Netflix leadership at the White House with
Speaker 1: the President of the United States. We're there out on podcasts,
Speaker 1: on Apple, on Spotify, on YouTube podcasts. It's single best
Speaker 1: idea