Here’s what smart people are saying about Paramount winning the Warner Bros. Discovery deal

• Paramount-Skydance outbid Netflix for Warner Bros. Discovery
• Here's what business and political leaders are saying about the impact of the deal.
• "Welcome to Hollywood kid," one $4 billion wealth manager said of WBD CEO David Zaslav.

Paramount-Skydance has emerged as the winner in a multi-round battle for the future of Warner Bros. Discovery.

Netflix backed out — and stands to pocket $2.8 billion in breakup fees — after the Larry and David Ellison-run company made a higher bid.

Here's what smart people in business and politics are saying about the deal.

Ross Gerber

The cofounder of wealth management firm Gerber Kawasaki, which manages $4 billion, joked about the economics of the deal on X. WBD owes Netflix nearly $3 billion in a breakup fee.

"Haha. They paid $110 billion. Netflix gets $2.8 billion. Zaslov laughing to the bank. Welcome to Hollywood kid," Gerber said of WBD CEO David Zaslav.

On Monday, Gerber posted that Paramount could "way overpay" for WBD, allowing Netflix to "walk away with Billions and a huge win saddling paramount with losses forever."

Paul Nary

The Wharton School assistant professor, who researches mergers and acquisitions, wrote in an X post that the deal gave Netflix a way out.

"What is surprising to me is the speed with which Netflix had pulled out, and I respect their choice not to pretend they're still in it and prolong the game," Nary wrote.
"If WBD had indications of Netflix losing their faith in the deal, the change in their tone towards Paramount, dialing back their expectations for the headline price – all of these make sense now," Nary added.

John Delaney

The former presidential hopeful and two-time CEO replied on X to Semafor editor Liz Hoffman's analysis: Netflix faced issues with shareholders, Hollywood talent, and politics.

"Despite all the noise around the problems you identified, all of them are solved by Netflix showing discipline – and sending a strong signal to everyone – and walking away," Delaney wrote. "Signal vs Noise."

Elizabeth Warren

The Democratic senator opposed last year's Paramount-Skydance merger and has scrutinized the latest company deal.

In a statement, Warren raised questions about the White House's alignment with Paramount Skydance.

Trump said earlier this month that he was staying out of the battle for WBD — and that both bidders had called him. He said the deal would go to the Department of Justice.

"A Paramount Skydance-Warner Bros. merger is an antitrust disaster threatening higher prices and fewer choices for American families," Warren said.

She added, "A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want."

The lawmaker said, "It'll be up to the American people to speak up and state attorneys general to enforce the law."

Rob Bonta

On Thursday, California's attorney general, Rob Bonta, said in a statement that the transaction was "not a done deal."

"The California Department of Justice has an open investigation, and we intend to be vigorous in our review," he said.

Seth Stern

Seth Stern, chief of advocacy at the Freedom of the Press Foundation, wrote in an emailed statement Thursday that the nonprofit had concerns that David Ellison would capitulate to demands from the Trump administration.

"Ellison has already shown his cards," Stern wrote, pointing to recent editorial moves at CBS News under its new editor in chief, Bari Weiss.

"Ellison will readily throw the First Amendment, CNN's reporters and HBO's filmmakers under the bus if they stand in the way of expanding his corporate empire and fattening his pockets," Stern said.

He called on lawmakers, state attorneys general, and "anyone else in a position to intervene" to voice their disapproval of Paramount's potential takeover of Warner Bros. Discovery.

Matt Stoller

Matt Stoller, director of research at the American Economic Liberties Project and author of the "BIG" anti-monopoly newsletter, discussed the legal situation surrounding the deal in a Substack video conversation with Richard Rushfield, a columnist at The Ankler.

He said the merger can be challenged by state enforcers, and Paramount would push to close the deal quickly to get ahead of that.

"That means they get to take over all these assets and start running them," Stoller said. "They can fire people. They can intermingle the assets. They can choose new lines of business. They can move people around. All of the bonuses get paid out. They can do layoffs."

Trying to unwind operations where assets are already intermingled would be like "unscrambling eggs," Stoller said.

Stoller said he was puzzled by why other companies in Hollywood haven't hired lawyers to compile evidence in opposition to the merger and hand it to state attorneys general to help build their case.

"It just baffles me why people are so passive when you can actually knife fight on stuff," Stoller said, though he added that it could be happening without his knowledge.

Chris Hayes

Chris Hayes, the MS NOW anchor and political commentator, posted on X that it was "pretty relevant" that Netflix decided to withdraw its Warner Bros. takeover plans after the streamer's co-CEO met White House officials in Washington on Thursday.

"The announcement coming after meeting with the regulators and WH who could approve or deny the deal seems pretty relevant!" he posted to X Thursday.

Read the original article on Business Insider