MOVIE NEWS – While Netflix is insisting its Warner Bros. acquisition is “a victory for entertainment,” Wall Street is urging restraint. Analysts are pointing to the earlier Warner and Discovery merger as a cautionary precedent.

Even before anything is officially confirmed, Netflix’s buying Warner Bros. is already causing a stir. Film fans around the world fear what more consolidation could mean, and filmmakers are voicing sharp criticism as well – James Cameron has described the situation as a tragedy. On top of that, Paramount is drawing backlash for an aggressive countermove, quietly putting forward an even higher offer despite previously losing the auction.

Wall Street, meanwhile, is not sold on the way this is unfolding. According to Deadline, analyst Robert Fishman advised Netflix this week not to get dragged into raising its bid again. In fact, he recommended stepping away from the acquisition entirely and “keeping their heads down, and continuing to execute the strong hand they already have in the market.”

The concern is that the deal may not work out for Netflix the way the company believes it will. The $83 billion offer is already among the largest ever seen in entertainment, but even if it closes, its real value is far from guaranteed. Analyst François Godard reacted by saying, “My first reaction is, watch out, Netflix.” He added, “The merger between Warner Bros. and Discovery destroyed value, and there’s a risk that this new deal will produce a result smaller than the sum of its parts.”

That uncertainty has shown up in the market immediately: Netflix stock is down around 10% since the acquisition news, and the slide is even steeper compared with when the company first signaled interest. In his report, Fishman also said Paramount’s seemingly desperate move has logic behind it. David Ellison’s company has more at stake, and landing Warner would make it a “formidable competitor” in streaming, so a still higher offer would not be surprising depending on how Netflix responds.

On Netflix’s side, Ted Sarandos is doubling down on the messaging. Facing negative headlines from multiple directions, a recent statement framed the acquisition as “a victory for entertainment,” aiming to calm fears of mass layoffs and corporate redundancy by acknowledging that “Warner Bros. brings businesses and capabilities that we don’t have.” For now, the streaming giant is also promising to maintain Warner’s film franchises.

Source: 3djuegos