00:00So the so the the prediction kind of came true that, you know, this is kind of what shareholders expected.
00:05Now the bidding war begins.
00:08Again. Yeah. Yes. We're sorry. The bidding war continues.
00:13Exactly. For business days. So Wednesday, Netflix has still to respond.
00:20And it can could just raise its offer by a dollar. And that would sort of put it in the
00:26same context of where it was before.
00:29Or it may go higher or they may walk again.
00:33Right now, we think Ted Sarandos, the co-CEO of Netflix, is in the White House making the case for
00:38his his deal still.
00:40So, yeah, all indications are that they still want to want to participate.
00:45So Paramount commenting to. Did you say this? Forgive me if I missed this.
00:50Commenting on the Warner Brothers board's determination.
00:53Paramount will cut Warner Brothers potential one and a half billion dollar financing costs.
00:57Paramount has fifty seven and a half billion dollar debt commitment, excuse me, from lenders, has commitments from Bank of
01:03America, Citi and Apollo.
01:05And that was a sticking point. Right, Chris, earlier on, Warner Brothers Discovery was a little concerned about the financing
01:11part of Paramount Sky Skydance's bid.
01:14Yeah, this shows how this transaction has evolved from December.
01:18It's more than just a dollar more a share that Paramount's offering.
01:22They've significantly increased the, you know, they'll backstop.
01:27Larry Ellison is personally backstopping all the equity that they're going to put into the deal, plus, you know, 40
01:32plus billion.
01:34He's backstopping some of the debt they're refinancing, some 15 billion worth.
01:39They've committed to a much higher termination fee.
01:43If they don't get regulatory approval, they would pay seven billion.
01:46And they agreed to pay two point eight billion to Warner Brothers, which would then send it to Netflix to
01:52get them out of the Netflix deal.
01:54So a staggeringly large amount of money that Paramount's committing here.
01:57So Ball's in Netflix's court at this point.
02:01What do you, what do analysts think it comes back with?
02:07I think Momentum has been lately moving against Netflix and into Paramount, that they're the ultimate winner.
02:14I've certainly heard that from a lot of people.
02:16Wait, sorry, who's the ultimate winner?
02:17Paramount.
02:18Paramount is, I'm sorry, Paramount is the ultimate winner, yeah.
02:22That changed quickly, Chris.
02:25It has, yeah, it definitely has.
02:28They've been very aggressive.
02:29They played every single card they can think of, from the lobbying to the proxy fight to the changing the
02:35terms.
02:36They've really worked everything.
02:38I'm just looking at what Netflix stock is doing after hours.
02:41Again, this was expected, but after hours, Netflix stock is up seven tenths of one percent.
02:46And just a reminder of where it closed today, up 2.3 percent today, up 6 percent yesterday.
02:51And on Tuesday, up 2.7 percent.
02:55Investors like the idea of the company not spending all this money and going into debt.
03:022.8 billion dollars.
03:04They could make a lot more movies and TV shows.
03:06Yeah.
03:06Hey, what does this mean for Hollywood?
03:11You know, that's a funny thing, because Paramount has made the case that they're a better buyer of this asset,
03:18largely because of Netflix's historical opposition to putting movies in movie theaters.
03:24But, you know, this is still the consolidation of two of the five biggest movie studios, consolidation of two of
03:30the biggest operators of cable TV channels, two big streaming services.
03:34There's going to be a lot of job cuts.
03:38Paramount's CEO, David Ellison, is trying to make the case that he's going to increase movie production in particular.
03:45But, you know, that remains to be seen.
03:48This is this is definitely more turmoil in the short run for Hollywood.
03:53Hey, just to wrap up, Chris here.
03:55So four days.
03:56So wait, does now Netflix have until Sunday or where's when?
04:00Business day is business day.
04:02So Wednesday, Wednesday.
04:03All right.
04:04But the lawyers will be working over the weekend, Carol.
04:06Don't worry.
04:06Probably.
04:07All right.
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