u/asymmetricval ·
Reddit — r/ValueInvesting
· February 26, 2026 at 23:30
· ⬆ 106 pts
· 💬 60 comments
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AI Summary
Summary
The post discusses Netflix (NFLX) withdrawing from a bidding war for Warner Bros. (WB), which has been won by a Paramount Skydance bid.
The author, a Netflix shareholder, expresses mixed feelings: relief that management is disciplined and avoiding excessive debt, but also disappointment at missing out on valuable intellectual property (IP).
Quality assessment: This is speculation and commentary, not deep-dive due diligence (DD). It reflects an investor's reaction to a news event.
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“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid,” Netflix co-CEOs Ted Sarandos and Gary Peters said in a statement.
I am conflicted. Obviously we all love a nice +12% after hours, and I am somewhat pleased that the company will not be taking on a lot of debt, I do think that the addition of all the core WB IP could have very additive to Netflix over the long term.
That said, Ted has once again reassured me that management have their wits about them.
I know there are lots of other Netflix holders here. What are you thinking?