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Podcast Episode

What the AI Scare Gets Wrong

Prof G Markets

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Scott Galloway and Ed Elson unpack the Citrini Research piece that took down markets last week, and reveal where they see opportunity. Then they discuss Trump’s State of the Union and examine real data to figure out how the country is actually doing. Finally, they break down who the winners and losers are now that Netflix has dropped out of the bidding war for Warner Brothers Discovery.  Subscribe to the Prof G Markets newsletter  Order "Notes on Being a Man," out now Note: We may earn revenue from some of the links we provide. Subscribe to No Mercy / No Malice Follow the podcast across socials @profgmarkets Follow Scott on Instagram Follow Ed on Instagram, X and Substack Send us your questions or comments by emailing Markets@profgmedia.com Learn more about your ad choices. Visit podcastchoices.com/adchoices

AI Summary

Scott Galloway and Ed Elson analyze the Citrini Research report that sparked recent market turbulence, identifying flaws in its AI doomsday predictions and exploring where genuine opportunities lie. The episode pivots to assess the actual state of the U.S. economy through real data and Trump's State of the Union address. They round out the discussion by examining the competitive landscape following Netflix's withdrawal from the Warner Brothers Discovery acquisition race.

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Every deal works at right price; Netflix saved $120B walking away.▲ Hide transcript
Every deal makes sense at some price and no deal makes any sense at a certain price. So him walking away from this deal, they save, I think the total consideration was approximately $120 billion. And we predicted this: the stock is up 10% on the news (Netflix). So with a $350 billion valuation, they got $36 billion for walking away in increased market cap. They're going to get another $2.5 billion in cash for the breakup fee. So if you look at the total consideration of, say, $120 billion plus the kind of $40 billion free gift with purchase in terms of stock appreciation and the breakup fee, you know, Netflix got $160 billion technically for not doing this deal. And I mean, we're getting to the point where Netflix could take the money that they're registering from not buying Warner Brothers and the increase in their stock price and now they're in striking distance of potentially buying Disney; Disney's got about a $200 billion market cap. So for close second in terms of winners, Ted Sarandos and Netflix from showing discipline and walking from a deal that made no sense.
Captured: Mar 9, 202679sSource: file-groq-sc

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