>>215400238
Networks have an artificially inflated value. The network accountants completely ignore the cord cutting phenomenon and instead just go "well we still make $2B/yr from our cable channels, and historically cable channels have been sold for 5x what they made in the most recent year, so our cable channels are therefore worth $10B. We're going to put that on our books as $10B of assets that we own. And actually we want to sell them but nobody wants to buy them for that price for some unknown reason so what we're going to do instead is spin them off into a new company that will immediately pay us $10B for the privilege of having been created"
So if you're going to buy WBD's cable networks you're going to have to pay them a bullshit amount of money to get stuck with an asset that will decline in value as profits and sale prices inevitably fall in the future.
