Paramount launches hostile bid for Warner Bros

Does WB have to pay the breakup fee to Netflix if a Paramount hostile takeover succeeds?

It looks like it. $2.8bn by Warner Brothers to Netflix [1].

If the vote looks close, Paramount would be expected to raise their bid to cover that cost.

[1] https://www.sec.gov/Archives/edgar/data/1065280/000119312525... 8.3(a)

The failed merger and similar clawback clause between Kroger and Albertsons is currently destroying a significant part of the supply chain for food in the Pacific Northwest. Grocery stores that have been open for 50-75 years - stores where whole neighborhoods and towns were built around - are closing forever, leaving those areas as food deserts.

Either way, this entertainment merger is going to get ugly. Consumers are absolutely going to get harmed either way with that clawback clause.

Except you need food to live and tv shows are an artificially scarce resource that's actually free to distribute in unlimited quantities, so the harm is very different.

Real people work in this industry, though. A merger of this size is bound to come with some layoffs and canceled projects.

It's not as bad as food scarcity, of course. But it can do some collateral damage.

That, plus fewer studios mean less creativity goes to the mainstream. If you thought AI slop was bad, go re-watch Star Wars Episode 8.