Neflix officially withdrew from buying Warner Bros after Paramount raised the stakes to ~$31 per shares.

They did the right thing for the stock short/medium term. They’ll pocket ~$3B in cash in dommages which they’ll use to fund buybacks or new projects. This is a great situation for doing nothing.

The problem is that the market has now re-priced Netflix for execution risks and might not repush it to new highs tomorrow, even if the original stable cash machine is back without any risks and ~$3B more in cash, momemtum is sacred in the market and hard to restart when broken.

For the industry and long term for Netflix, I agreed with some comments on X that this isn’t the best situation. Netflix would have made a killings with such licenses and we would have had so much more content that what Paramount will do - and higher quality, now that they crumble in debts.

This is maybe cool for the stock short term, but short term pain would have been better long term and yielded such amazing results.