00:00Does Netflix have the balance sheet, the sort of financing flexibility and the will, really, to amend, improve, boost its
00:10bid for Warner Brothers Discovery's studios and streaming business, if needed?
00:16Let me tell you, we feel very good about the position we're in right now.
00:19So we've done, this process opened up. Warner Brothers Discovery determined that it was in their strategic best interest to
00:28sell these assets.
00:30We entered into a negotiation. It was a very, very clear bidding process that they laid out for us, which
00:37we followed and won that bid.
00:39I think in the alternative, B-Sky has gone, you know, missed every deadline.
00:46They've been taking nine runs of this bid and they were, you know, they're not, they don't accept this outcome.
00:52So what we've done here is we've given Warner Brothers Discovery a seven-day window to get some clarity about
00:58what Paramount is offering for this company.
01:01I believe that it's important to have that clarity.
01:04I think it's important and that the Warner Brothers Discovery shareholders deserve to have that certainty and clarity about this
01:10deal.
01:13Now, your stock is down more than 30% since you announced this deal.
01:18So you feel good about it, your shareholders. It's a little less clear.
01:20I know that I've heard you say that that is because of uncertainty, but it went down basically as soon
01:25as you went into this.
01:26So I'm just wondering, is there a point at which it goes down so much that you and your fellow
01:31board members have to reconsider if this is the right path?
01:35Look, as we remember, we run this company from the beginning to the long term.
01:39We think this deal will have a positive impact on the business for the long term.
01:43Remember, what we're doing in buying these assets is we've been creating original programming on Netflix for about a decade.
01:50They've been making original film materials for about 100 years.
01:54They have incredible IP, and we just happen to have a consumer model that can better maximize the returns on
02:00that IP.
02:01So I think it's a great long term outcome.
02:06I think there has been some headwind in the stock.
02:08There's been some headwind in the sector.
02:11And there's been some headwind because of the AI trade, which I think is ironic because I think AI will
02:17be an amazing creator tool to actually make the entertainment business bigger and better than ever.
02:21So I do think those things have got to play out.
02:24When I said they don't like uncertainty, there's, you know, there's concern about bidding wars and all those things.
02:30And we have always been an incredibly disciplined buyer, and we will continue to be one here.
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