TUDUMB

MG Siegler, writing at Spyglass:

Of course, Netflix could have absorbed such a cost. It’s a $400B company (well, before this deal, anyway) — double Disney! Paramount Skydance? They’re worth $11B. Yes, they’re paying almost exactly $100B more than they’re worth for WBD. Yes, it’s looney. But really, it’s leverage.

To be clear, Netflix was going to pay for the deal with debt too, but they have a clear path to repay such debts. They have a great, growing business. They don’t require the backstop of one of the world’s richest men, who just so happens to be the father of the CEO. How on Earth is Paramount going to pay down this debt? I’m tempted to turn to another bit of Paramount IP for the answer:

  1. Step one
  2. Step two
  3. ????
  4. PROFIT!!!

★ Friday, 27 February 2026