Netflix Gives WBD Permission to See Other People (For 7 Days)

Live look at the discussions between David Ellison and WBD over the next seven days… 

So Netflix just either made the most confident Chad move imaginable… or they seriously just screwed the pooch on the WBD deal. How? Because they’ve just given WBD permission to “see other people” (read: David Ellison) for seven days to find out if Paramount Skydance can actually close the deal, it's been sliding into DMs about for weeks. 

David Ellison be like:

(Source: Giphy) 

What’s the worst that can happen? 

Well a lot, actually. See, Ellison's down to get it on in whichever way he can. He’s been down. Friendly reminder that Paramount issued a hostile tender at $30/share straight to WBD shareholders after losing the initial bidding war to Netflix. The company's been saying that's "not our best and final" for weeks now, added some vague "enhancements" last week, and then… according to WBD… a senior Paramount rep quietly told a board member they'd bump it to $31 if talks reopened. 

(source: CNBC)

So Netflix said fine. Go ahead. Seven days. Waiver granted. "We recognize the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY's antics," Netflix said in a statement that basically translates to: “I’m tired of this grandpa”… to which David Ellison says “that’s too d*mn bad”. 

Translation: WBD CEO David Zaslav is treating this like a negotiation seminar, mentioning things like "deficiencies" and "opportunities to address them" and maximizing "value and certainty." The WBD board still unanimously recommends the Netflix deal. Shareholder meeting's set for March 20. But if Paramount can actually put together something "actionable and binding" that's better than Netflix's offer, WBD's clearly willing to listen. Bigly.

(Source: Giphy) 

Of course, one can assume that even if Paramount comes back with $32, $33, whatever, Netflix can just say "cool, we’ll match that” and WBD shareholders still have to vote. On the other hand, there’s still a possibility of a swinging vote if David Ellison shoots his shot spectacularly. Which means if the hail mary works, then Netflix just learned one of the most valuable lessons life can teach you: you can’t invite a snake into the garden and be surprised when it bites you. Until next time, friends… 

At the time of publishing, Stocks.News holds positions in Netflix as mentioned in the article.