Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bear! -- Ignore unavailable to you. Want to Upgrade?

To: Harshu Vyas who wrote (286)	12/5/2025 8:17:31 AM
From: Harshu Vyas	Respond to of 291

More on it - you've effectively turned a capital-lite platform business into a capital-intensive media heavyweight. Wall St are valuing "assets" and "asset potential" through the content library narrative here not actual "earnings." I think it's a huge blunder. You're bringing in massive uncertainty to your capital structure - more so, when you consider inevitable restructuring costs that will run into the billions of dollars - for no cash flow certainty. WBD realised they couldn't keep slashing and burning forever so they passed the parcel. Gosh, it seems so stupid. *Also, I said merger in my above post. Meant acquisition. Brain fart.

To: Harshu Vyas who wrote (286)	12/5/2025 8:21:40 AM
From: Sean Collett	Read Replies (1) \| Respond to of 291

To be fair to AOL-Time Warner AOL was playing all sorts of games with revenue and booking things as revenue that was really not. This kept inflating their stock price which allowed them to make the merger happen with them taking the drivers seat. $WBD has been depressed in price since it formed and $NFLX is very much a cash generator. I am on the fence with this one. Likely they overpaid (but I was not an investor in either) but it's defensive for Netflix to have that deep library on its platform without risk of it getting pulled. Netflix has spent so much on original content the past few years and NONE of it is really memorable so I would think they pull back on that garbage now as they can use the better studios and teams from their new child? It does make a terrible CEO, David Zaslav, look good though. What I find most interesting is John Malone spent the back half of his new book complaining about Big Tech and their deep pockets.....only to see one of his sell to Big Tech. -Sean