Netflix Lost Warner. Maybe That’s a Good Thing.
It is entirely possible, analysts say, that Netflix will be better off by bailing from its $83 billion deal with Warner Bros. Discovery.
Netflix’s stock jumped nearly 14 percent on Friday, a day after it stunned Hollywood by backing out of its $83 billion deal for Warner Bros. Discovery.
Netflix’s bank account grew by $2.8 billion on Friday, too, when Paramount paid a breakup fee for sideswiping the Warner deal.
And two of Netflix’s top competitors, Paramount and Warner Bros., now have the daunting task of forming one successful company out of their two struggling businesses, all while managing a huge pile of debt. Sounds like a huge distraction.
Related stories
Related Knowledge Center: State of the business model
The traditional journalism business model has long since collapsed, and news organizations have shrunk or disappeared entirely. While a number of promising experiments are under way, the public has not shown a willingness to buy what news organizations are selling.