Netflix is officially moving to acquire Warner Bros. Discovery in an all-cash deal, but the market isn't celebrating. With the stock down over 30% from all-time highs, we break down the "prophetic" call to trim our positions and why the financials of this deal are creating a massive $3 billion headwind.
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Chapters:00:00 – Netflix Stock Crash:01:15 – The Valuation Spoiler: It’s all about Cash Flow01:55 – Subscriber Breakdown: Netflix vs. Disney vs. WBD02:45 – Terms of the Deal: Why Netflix switched to All-Cash04:00 – The $20B Cash Question: Where is the money coming from?05:40 – The Financing: Understanding Bridge Facilities & Loans06:20 – The Interest Expense Trap: 5% is a big deal08:50 – Market Reaction: Why the 30% drop makes sense10:30 – Our Strategy: Why we’re holding (for now)
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Content in this video is for general information or entertainment only and is not specific or individual investment advice. Forecasts and information presented may not develop as predicted and there is no guarantee any strategies presented will be successful. All investing involves risk, and you could lose some or all of your principal.
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Nick and Kasey own shares of Netflix.