Paramount–Warner Bros. merger could make HBO Max a staple rivaling Netflix

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โดย Yahoo Finance·Read original

Summary · why it matters

Morgan Stanley analyst Sean Diffley says the Paramount–Warner Bros. Discovery merger could elevate the combined streaming service to a must-have staple, potentially becoming the second or third largest streamer and rivaling Netflix. The deal is expected to close with six and a half times leverage, but management aims to reduce that to under three times within three years, partly through $6 billion in synergies, with less than half coming from headcount reductions. Diffley highlights AI's role in cutting costs by 20 to 40 percent, citing Netflix's use of AI to avoid reshoots on The Crown, and sees Paramount as well-positioned to leverage AI for pre- and post-production efficiency. The combined company would spend over $30 billion on content, surpassing Netflix's $20 billion, and hold a premier IP portfolio including Lord of the Rings, Game of Thrones, Harry Potter, Superman, and Batman.