"Related accounting calculations will drag on Netflix for some time," said Rich Greenfield, co-founder of LightShed Partners. During Friday's early trading session, Netflix shares fell 1.8% as investors digested the streaming giant's blockbuster deal to acquire certain assets from Warner Bros. Discovery.
LightShed Partners co-founder Rich Greenfield believes the economics of the deal will likely pressure Netflix before yielding long-term benefits.
Greenfield stated: "Look, the accounting impact will weigh on Netflix for a period. There's no doubt about that. It's expensive. They believe the deal will become accretive by the second year. Clearly, we need to understand how they achieve that—perhaps because they have so much they can accelerate through this."
"It's a steep price, and I don't see how Paramount could outbid this. The number just seems too big," he added.
