After Comcast planned to separate NBCUniversal media operations from traditional telecommunication operations, the market began to revisit the fate of the asset. According to the foreign media review, if future M&As were entered, Netflix might see NBCUniversal as a more appropriate target, rather than Warner Bros. Discovery, who was once popular.
According to the article, the core of this judgement is not short-term business hearsay, but asset quality and financial affordability. Netflix ' s current balance sheet is relatively robust compared to the potentially high leverage pressure of the acquisition of Warner Bros. Discovery, and the scope of the transaction is greater if it waits for the break-up to be completed before the NBCUniversal is evaluated.
Why NBCUniversal?
According to the review article, the attraction of NBCUniversal for Netflix comes mainly from three types of assets: the Video Content Library, sports copyrights and offline entertainment. The article mentions that NBC ' s broadcasting network has a stable revenue from rebroadcasting fees, and has long-term, live sports rights such as the NFL and the Olympic Games, which are considered more resilient than traditional cable networks.
In addition, the global film industry and its content bank have been cited as important chips. The article calls for " Jurassic World ", " Speed and passion ", " Father of God ", etc., as well as films such as Oppenheimer, " Witch of Magic " and " Super Mario Brothers " in recent years, and believes that its commercial value is sufficient to support a larger media integration programme.
The article also mentions that Global Theme Park is an asset not owned by Warner Bros. Discovery. According to the review, this portion of the revenue is considerable and allows Netflix to obtain a more complete entertainment map outside the streaming media.
Mergers discuss heating after break-ups
According to the article, Comcast, which promotes fragmentation at this time, also reflects the fact that traditional media groups are still looking for more appropriate sizes and structures. For Comcast, the dismantling of media and telecommunications operations has helped to open up new capital operating spaces for NBCUniversal.
According to the review, the media industry has been fragmented and integrated over the past few years, behind which traditional television services are under pressure, while high-quality content, live sports and thematic entertainment assets remain more attractive. According to this article, if NBCUniversal existed in a more independent form, it would be easier for the future to be the object of mergers and acquisitions on large platforms.
Regulatory resistance may not be the current focus.
With regard to external concerns about regulation, the article argues that the discussion is still premature. According to the paper, the NBCUniversal tax-free break-up is expected to take about one year to complete and may involve higher tax costs if sold prematurely thereafter, so that the real trade window may not be opened immediately.
According to this article, the President of the United States, the Federal Communications Commission and the antimonopoly regulator may have changed by the time the time of potential M&As arrives. In other words, what is more of concern at this time is not whether the transaction can take place immediately, but whether Netflix will include this asset in the next expansion option after the break-down has been completed.
From the perspective of the article as a whole, the author believes that Netflix, instead of being involved in high-cost transactions in the past, has left more room for the future. If Comcast completes its break-up, NBCUniversal may be one of the most important assets in the next round of integration of the tradable media industry.