The Compound and Friends

Buy or Die

52 snips
Dec 19, 2025
Bill Cohan, a former investment banker and journalist at Puck, shares his insights on the intense competition between Netflix and Paramount for Warner Bros. He dives into the complexities of mergers and acquisitions, highlighting the strategic motives of both bidders and the financial implications of their offers. Cohan discusses the role of investors and the potential for significant changes in Hollywood due to consolidation. Additionally, he offers his take on banking dynamics and speculates on the future of the Federal Reserve.
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INSIGHT

Funding Certainty Under Scrutiny

  • Questions about whether Larry Ellison's trust legally backstops Paramount's equity created board skepticism.
  • Cohan notes mismatches in SEC filings that made the WBD board uneasy about Paramount's funding certainty.
INSIGHT

Nonvoting Equity As Regulatory Fix

  • Middle Eastern investors would provide most of Paramount's equity but gave up voting rights to avoid regulatory blocks.
  • Cohan says that removes formal control while preserving soft influence through access to equity owners.
INSIGHT

Netflix Keeps Redefining 'Never'

  • Netflix repeatedly reversed past 'never' positions as it expanded into sports, ads, and now potential acquisitions.
  • Cohan argues Netflix will stop escalating if a bidding war pushes its balance sheet toward junk ratings.
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