Comment Re:Let's see (Score 1) 76
If the assets are sold at auction, considerable value is lost. If the company is sold, much of its value remains.
Again, this only affects the shareholders in this case. The employees suffer pretty much the same fate regardless and the consumers, despite what the companies say, tend to lose value when the company is acquired. Think about the mega mergers of the last 20 years, which ended up with better outcomes for consumers and/or employees long term? The shareholders are holding shares of a failing business right? So why should they be entitled to retain their full value?
401k's follow the broader market, WB going to auction is not going to move the entire S&P a significant amount, unless someone had their 401k in WB stock it might dip a couple points but 401k's are not day traders, these are years and decades long investment. We see daily 5-point shifts just on political news of the day. I'm sorry but the "think of the 401k" is a canard to justify any market move no matter how bad. This also at least for my opinion, is part of why the entire 401k experiment has been an intentional failed system to do away with traditional pensions.
The number of studios drops to four, and whichever studio had the most available capital (Paramount, if they're smart) will walk away with the bulk of WB's assets. The unwanted outcome occurs anyhow, but with more pain. Well, except for Paramount, which saves a bundle on WB's assets
The studio count still drops to 4 in a buyout. Now if you told be a new ownership group wants to buy up WB to keep it open as an independent entity I might consider that buyout, but one of the 5 buying eachother? No, sorry, go bankrupt.
Also Netflix was ready to pay like $80B for WB's assets without CNN and TBS and such, you don't think they and Disney and anyone isn't going to buy a piece of the assets? We can also simply regulate that none of the existing entities can purchase more than a certain percent.
I remain unconvinced that Paramount being allowed to fully absorb WB this way is less pain for customers or employees or the economy as a whole, much less much less American society as a whole. You can accuse me of spite all you want but I don't think the advantages promised have ever been seen in the vast majority of the mergers of the last 20 years. Spite backed up with facts isn't really spite is it?