The three-way bidding war for Warner Bros. Discovery (WBD) has begun!
This is massive consolidation. It looks like the streaming wars are finally ending in a “survival of the fattest” scenario.
At this point, why stop there? Just merge Disney, Comcast, and Netflix into one ticker called $CONTENT. We can all own one stock, pay $200/month for one subscription and let the FTC chair scream into the void.
Talk about an efficient monopoly moat.
The problem is valuations. Netflix trades at a tech multiple while the others trade like dying utilities. Merging them would just drag NFLX’s PE down into the mud. Reed Hastings (or whoever is running the show) isn’t dumb enough to dilute his stock to bail out Comcast’s debt pile.