Good on anyone who sniffed out the Warner Brothers sale last year as it’s been better than a 3x trade.
The upside is now limited to $27.75 per shares, which is what Netflix bid as part of the $72 billion equity deal plus debt. It’s a huge bid in a tough industry as Netflix tries to put its stamp on traditional media.
The downside in WBD is now considerable as Trump weighed in on potential anti-trust questions.
“I’ll be involved in that decision,” Trump said Sunday.
“They have a very big market share,” Trump said. “And when they have Warner Brothers, that share goes up a lot.”
Keep in mind that Trump is not friendly with Netflix founder Reid Hastings. For years, Hastings positioned himself as one of Trump’s most prominent corporate critics. He donated $7 million to a pro-Kamala Harris Super PAC and was a leading voice pressuring Joe Biden to step down to make way for a stronger candidate against Trump.
Since the election though, he has gone quiet but Trump surely hasn’t forgotten which side he was on
