Paramount launches hostile bid for Warner Bros
cnbc.com364 points by gniting 3 days ago
364 points by gniting 3 days ago
Previously: Netflix to Acquire Warner Bros - https://news.ycombinator.com/item?id=46160315 (1333 comments)
Does WB have to pay the breakup fee to Netflix if a Paramount hostile takeover succeeds? It looks like it. $2.8bn by Warner Brothers to Netflix [1]. If the vote looks close, Paramount would be expected to raise their bid to cover that cost. [1] https://www.sec.gov/Archives/edgar/data/1065280/000119312525... 8.3(a) The failed merger and similar clawback clause between Kroger and Albertsons is currently destroying a significant part of the supply chain for food in the Pacific Northwest. Grocery stores that have been open for 50-75 years - stores where whole neighborhoods and towns were built around - are closing forever, leaving those areas as food deserts. Either way, this entertainment merger is going to get ugly. Consumers are absolutely going to get harmed either way with that clawback clause. I don't understand how that kind of clause can be legal. Its existence puts anti-trust enforcement in a catch-22, either they allow the merger, which reduces competition, or they reject it, and the acquiree is decimated, also reducing competition. > I don't understand how that kind of clause can be legal. Arguably they promote a chilling effect around acquisitions, which does help competition: "don't try to buy something unless you're prepared to deal with a possible fallout" should result in fewer attempts at consolidating dominant positions. I'd almost be tempted to posit that such a clause should become mandatory for deals over a certain threshold (e.g. $1bn), with amounts determined according to certain parameters. > don't try to buy something unless you're prepared to deal with a possible fallout The kroger Albertsons deal was the other way around, the seller had to pay the buyer if the deal didn't go through. 8.3(b) on pg. 79 says that "Regulatory Termination Fee" is $5,800,000,000 from Netflix to WB. (IANAL) It's not like we aren't drowning in entertainment options. Food on the other hand, that's a real problem. 12 Fast and the Furious, 42 X-Men movies… yeah - drowning Not to mention franchises like Star Wars, Marvel, Alien, Predator, Jurassic Park etc. Speaking of anti-trust, all of those franchises save Jurassic Park are owned by Disney through mergers. I'm still waiting for the "Alien vs Jurasic park". It must be a very entertaining movie. /s Best you can get is Aliens vs Predator vs Terminator comic book (if you are 10 years old you can like it, it is betterr than most AvP stuff but that is a low hanging bar) I mean the franchise didnt get anything top tier apart from Aliens labirynth and the vP 2 game from.. 2001? Look back, not forward my dude. Plenty of good material from previous years. With the benefit of hindsight having filtered the crap out I’m not sure it’s a fair comparison, groceries that sell food on one hand and a brainwashing and propaganda delivery system (see History of criminal, industry/advertiser, FBI, CIA, Pentagon, and foreign nation direct ties to the industry) masquerading as “entertainment” on the other. You don’t have to be “harmed”, just do not pay them your money. Problem solved. If the prospect of not being “entertained” fills you with anxiety and frustration, maybe that’s something to reflect on. The machine works in the aggregate, and so does the harm. Lets not pretend that all will be well if I just avoid the propoganda myself. That makes no logical sense. So if I give up my “entertainment” subscriptions because the execs need their bonuses and drive the prices up to compensate for the penalty, causing me to think about how to spend quality time with my family paying games, reading books, and doing activities; is equally harmful as if I can’t but groceries in my town because the grocery store was closed? I most certainly did not imply that cancelling subscriptions is harmful; I think you read something I did not write. I live a couple blocks down from one that was open for 40+ years. I use Amazon now for my groceries. I was gonna use Safeway but their prices are high. Sounds like an opportunity to open grocery stores. So when it's not happening as readily as we expect what do we do next? We just sit back and watch as the invisible hands of capitalism cleanse themselves of our existence. I suspect in a lot of those places there is only the one supply chain. UNfI is the big distriubor, Kehei is second. Both serve essentially all grocery stores. Except you need food to live and tv shows are an artificially scarce resource that's actually free to distribute in unlimited quantities, so the harm is very different. Real people work in this industry, though. A merger of this size is bound to come with some layoffs and canceled projects. It's not as bad as food scarcity, of course. But it can do some collateral damage. That, plus fewer studios mean less creativity goes to the mainstream. If you thought AI slop was bad, go re-watch Star Wars Episode 8. Me and my wife were Star Wars fans. The last Star Wars media we watched was episode 8. I almost walked out the theater. I've watched and enjoyed Andor since, but yeah other than that zero star wars movies and TV shows since episode 8. I hear 9 was also hilariously bad, but I'll not ever bother seeing it. my biggest problem with episode 8 was that they freed the camels but not the camel jockey slave children Star Wars is synonymous with Andor at this point. The original trilogy is second, but it isn't a close second.
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