66. Special Topic: Paramount Thinks They Won. They're Kidding Themselves.

A new special topic episode of Sound Speed Action is out now everywhere you get your podcasts!The big ongoing story in the entertainment world has been the fate of Warner Bros. Discovery. Paramount has acquired Warner Bros. Discovery after a long bidding war with Netflix. Netflix is being called the loser in all of this. Look, either of these companies getting their hands on this archive of content pushes this industry into some uncertain territory. But the narrative that Netflix was outplayed here is crazy to me. Today's episode gets into why.📌 EDITOR'S NOTE: I forgot to include this detail in the episode itself, but it's too important to leave out — so I'm adding it here. A thank you to my friend Arvind for the reminder. The WBD board initially rejected Paramount's hostile bid outright, citing "illusory" financing. The turning point came when Larry Ellison — Oracle co-founder and father of Paramount CEO David Ellison — stepped in with an irrevocable personal guarantee of $40.4 billion in equity financing. WBD's board chairman had specifically said the deal needed exactly that: direct accountability from Larry Ellison himself. Without that guarantee, Paramount's campaign likely dies in December. The episode covers the broader battle, but that's the detail that changed the math.We're stepping away from our regular reviews and recommendations for this one. Special topic episodes are for exactly this kind of thing, any major development that impacts this industry of art we all care so much about. The last one was about the American film union strikes of 2023. And by the way, the unions are renegotiating their contracts this year. Fingers crossed on that. Those strikes reshaped this industry in real ways, and this acquisition is going to do the same.