00:00First, let's get one thing straight here. Is the Netflix deal still on the table?
00:04Yes. Right. They have not canceled the Netflix deal. What they've said is this could lead to a better deal
00:11with Paramount.
00:12And so we're going to keep talking to them. I am curious about the conditionality of all of this.
00:16The idea that they have a bid. The numbers are there. It's either superior or it's not. What's the issue?
00:24It's obviously the Warner Brothers board is not completely convinced that they're there.
00:28They maybe think they can get a little bit more out of Paramount. It certainly seems that way.
00:32This is an extraordinary offer here. Paramount's not only raised the price, $31 a share, they raised the termination fee.
00:41If they don't get their deal done due to regulatory concerns, they're also agreeing to pay $2.8 billion to
00:48Netflix to get them out of that deal.
00:50So it's just a real indicator of how much Paramount wants this.
00:53I am curious about what we've heard, if at all, from Netflix. I know Ted Sarandos was on Bloomberg last
00:59week, the co-CEO over at Netflix.
01:01Do we have any sense as just to how far they are willing to go with this in terms of
01:06fighting to keep this deal intact?
01:09They've been asked many times, you know, what's your top price? And they've been, you know, understandably reluctant to say
01:15that.
01:16All we can say is from all of the effort they're putting into saving their deal, all of the TV
01:21appearances and meetings with investors
01:23and efforts to say that they really want this. Netflix is still in the game.
01:29Is there any sort of deadline that we should be looking to now, Chris, where maybe we do get a
01:34little bit more clarity,
01:35if not a definitive outcome, to this whole saga?
01:39There is a clock that will start ticking at some point.
01:41If the Warner Brothers board determines that the Paramount offer is superior to Netflix, then Netflix has four days to
01:49respond.
01:49It won't be all over then, because even then, Paramount could come back and come with a counterbid.
01:57But there is some effort to put a timeline on this.
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