00:00What did we learn so far this morning from this latest filing? Hey, Lisa. So this is really no surprise at all. I mean, we knew this was this was happening after
00:09Paramount launched its hostile bit. So Warner Brothers basically saying that the terms were inadequate, inferior and illusory. So inadequate because the 30 dollars a share
00:19they think really kind of undervalues their TV networks. They also raise concerns about financing. So, you know, there's been constant talk
00:30about the bed being fully backstopped by the Ellison family. Warner Brothers Discovery Board saying that's not true and that it's going back to an
00:39irrevocable trust. So, again, there's a lot of uncertainty and a lot of risks. And then finally, I think, you know, Warner Brothers saying that really
00:49the regulatory risk between a Netflix deal and a Paramount Skydance deal, not all that different. They also point to completely
00:55different financial profiles of both, you know, Netflix and Paramount, you know, basically talking about Netflix being a 400 billion
01:01dollar market cap company, Paramount 15 billion dollars. So, you know, just a whole lot of different concerns raised in that letter to
01:10shareholders. Keith, talk to us about the overlap between Netflix and HBO Max. Is this the most problematic aspect of the
01:17combination? Yeah, Damien, I mean, definitely, you know, this is going to be an issue because just if you combine those two
01:26streaming services, they are obviously some of the largest streaming services in the world. They will make up about 30 to 35 percent of
01:32the market. But I think what Netflix has repeatedly argued and a lot of I think investors also seem to agree with this view that it, you know,
01:40you can't consider just streamers as, you know, part of the landscape. You have to include everything. You have to include
01:46social media. You're including YouTube. You're including TikTok reels. I mean, this is how people are spending their time
01:52these days. And if you kind of look at if you broaden and zoom out and look at the whole market in its entirety, then maybe it
01:58doesn't really pose such a regulatory problem after all. Keith, I'm sure the market is pricing in the prospect of tough
02:05antitrust scrutiny over the deal. I mean, what are your thoughts there going forward? Yeah, I mean, antitrust is
02:11definitely going to be a big issue. We just saw, you know, Jared Kushner's affinity kind of pull out of the deal because of bad
02:17optics. You know, if you kind of look at it really from a from a paramount Warner perspective, yes, you know, the box office
02:25share would be about 30 percent. Again, Jenri, who's our antitrust analyst, didn't really think that would be too much of a
02:30problem. Those two streaming, you know, platforms, again, shouldn't really be so much of an issue because they're both
02:39somewhat or rather paramount plus is a little bit of a subscale platform. So still under, you know, the 200 million
02:44subscriber mark. So they're just there are just so many different considerations, though, Damian. But I think in general, the view
02:51was that Netflix would have a tougher time from an antitrust perspective. But again, it's it's all up in the air.
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