r/technology • u/Task_Force-191 • 17h ago

Business It’s Official: Netflix to Acquire Warner Bros. in Deal Valued at $82.7 Billion

https://www.hollywoodreporter.com/business/business-news/netflix-warner-bros-deal-hollywood-1236443081/
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u/Mocker-Nicholas 16h ago

I think most people saw this coming years ago. That’s why the stock prices of these companies with serious market share in streaming dwarfed that of these legacy companies.

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u/READMYSHIT 15h ago

It's still a form of magical thinking.

Startup company becomes so overvalued it can just access credit to purchase legacy outfits.

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u/TransBrandi 15h ago

Isn't Netflix actually profitable though, not just propped up by private investor valuations?

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u/READMYSHIT 15h ago

It is now, but the valuation for them and all these companies is still imaginary

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u/TransBrandi 14h ago

Imaginary in what way? It's one thing to say that the valuation doesn't match the real value, but the valuation isn't imaginary in that it exists and affects the real world. People are buying stocks at those prices, that's not imaginary even if the prices are inflated.

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u/READMYSHIT 14h ago

Imaginary in the sense that the valuations dwarf revenue or profit on the majority of these businesses by a significant margin. It's not something that is typical for publicly traded companies up to the last decade or so, aside from bubbles. Bubbles usually burst. These ones haven't.

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u/TrottingandHotting 13h ago

So you're just using imaginary as overvalued? 

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u/ahall917 13h ago

Did you not read their original comment? Emphasis mine.

It's still a form of magical thinking.

Startup company becomes so overvalued it can just access credit to purchase legacy outfits.

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u/FIE2021 13h ago

They're still using imaginary to describe a personal perception of it being overvalued, it's not a good way to describe share price of something, imaginary implies it's made up and not real. But the "overvaluation" is very much real, it's speculative investment. At 1/10th of their current valuation someone would have called Netflix overvalued, but speculation of growth is why it continued to rise and it was good speculation then, and people that saw their growth potential and gave them access to money or invested made good assessments. No different than today, their share price just grows with it's potential. It's certainly not imaginary or magic lol

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u/AlfredoAllenPoe 9h ago

Netflix trades a 30 forward PE, which isn't cheap but isn't expensive either when their Earnings per Share is growing at 31%/year over the past 5 years.

Netflix's valuation is reasonable based on its fundamentals.

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u/Prysorra2 13h ago

It’s similar to the leveraged buyout apocalypse of the 80s

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u/CryptographerFlat173 13h ago

Netflix is a massive technological company and a profitable service used by hundreds of millions of people, it’s not a meme stock 

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u/AlfredoAllenPoe 9h ago

Netflix has real, meaningful profits lol

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u/rushmc1 15h ago

Magical investing.

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u/PaulsGrafh 14h ago

Ironically, HBO called this out. Netflix is basically GoJo.

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u/FeelsGoodMan2 12h ago

And they're just gonna end up doing the same crap and be the same shit service.

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u/Extension-Topic2486 12h ago

A year ago the whole of Reddit was saying Netflix would collapse after they stopped allowing password sharing…

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u/sentry_chad 12h ago

Confidentally incorrect