"Where do you want me to get โฆ45,000 to recharge again? It is becoming too much despite you telling me it's unlimited. How can โฆ45,000 finish in just four days?"๐๐คฏ
โ Nigerian man calls out MTN after alleging his โฆ45,000 unlimited data plan was exhausted in four days.
@PolitlcsUK Is there also a law that permits them to start driving as children? If the law cannot hand over such important decision about driving or voting to children, why does it think that they have capacity to make such a life changing decision at a tender age about gender? #confused!!!
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@taadelodun@peng_writer
Iโll share four points about the Netflix deal just for educational purposes.
First, Netflix is not paying Warner $87b. The number you usually see in the headlines is the โenterprise valueโ of the business which is a combination of equity and debt. Most deals are negotiated on a cash-free, debt-free basis, which means Warner pays off its own debt at closing. Netflix pays only for the equity. Thatโs valued at $72B. Still huge, but really important to know the difference because sometimes the equity value is way lesser than the enterprise value depending on how the business is financed.
Second, the largest M&A deals on Wall Street are HARDLY ever financed in pure cash (and when that happens, itโs usually by a PE firm and they raise cash from banks). Netflix is not a PE firm. It would hurt their books to pull out $72b for a large media acquisition.
What they do is combine cash and stock.
Warner shareholders get $23.25 in cash and approx $4.50 in Netflix stock per share. So thereโs a payout and an exchange. The stock portion is subject to a collar, meaning the final number of shares adjusts depending on Netflixโs 15-day value weighted average price right before the deal closes (roughly between $77 and $119). Thatโs normal for deals where the buyer wants to preserve liquidity.
Third, Netflix has not โboughtโ Warner yet. They just signed a deal agreeing on the pricing and other conditions that need to be satisfied to get this deal done. The real battle is going to be antitrust/competition. Itโs a large deal which means it needs to be approved by several regulators. Netflix absorbing Warner puts a huge amount of premium IP under one roof. Streaming was already consolidating, but this pushes the industry toward a few mega-libraries controlling most of the content pipeline. Regulators in both the U.S. and EU are likely to take a hard look not just at subscription pricing, but also at licensing, exclusivity and vertical integration.
Fourth, on subscription prices, yes, consolidation can create upward pricing pressure because a platform with more premium IP has more leverage. But the economics cut both ways. Warner is selling for a reason. Cos running a studio is expensive, and HBO-level content only makes sense at global distribution scale. By moving that library under Netflix, the business may actually shed some of the inefficiencies that were pushing costs up in the first place, reducing Warnerโs need to nickel-and-dime consumers through complicated tiers, aggressive licensing and short-window exclusivity battles. So while Netflix may still raise prices, this deal could also streamline the economics behind the content.
I made a promise to come back to this tweet when my result comes out
No shortcut to success!! I read the entire curriculum back to back at least 4 times. I had a goal and nothing was going to stop me
Great News! ๐
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