Netflix could turn NBC into its biggest bet yet — and this time, the math actually works

On occasion, there are times where you win by losing. That may be how Netflix is feeling this week amidst the news that Comcast plans to spin off its NBCUniversal Media business from its legacy telecommunications business. Just as nobody would now say that Accenture lost out by having to surrender the Arthur Andersen name; similarly, in hindsight, Netflix losing the bidding war over Warner Brothers Discovery (WBD) to Paramount Skydance may prove to have been a blessing in disguise. Not having to incur massive debt for an overpriced WBD frees up Netflix — and its pristine balance sheet — to pursue NBCUniversal in due time. Speculation over the value of NBC to Netflix, we have come to understand, is more than idle media gossip. The logic of a potential deal could not be clearer for Netflix, which would get top quality programming, a chance to fortify freedom of expression and a bounty of creative product that would be informative and entertaining — and enriching to shareholders. It would also be a great cultural fit free of the acrimony of WBD’s demise. As Netflix seeks to expand its business beyond just streaming, it can do everything with NBCUniversal that it tried to do with WBD, but bigger and better. Indeed, there is a strong case to be made that NBCUniversal is a far stronger business, and a far more synergistic partner for Netflix, than WBD, across all fronts. NBCUniversal pulled in nearly 30% more revenues last year than WBD; it includes a crown jewel asset in Universal theme parks, a highly lucrative cash cow grossing $10 billion in revenues that WBD simply does not possess; and NBC’s strong broadcast network commands massive retransmission fees and has locked-in, prime long-term live sports deals with the NFL and Olympics, a strong contrast to WBD’s melting ice cube of cable networks bleeding revenues. (In fact, they’ve had priceless anchoring in sports with with the NFL, the NBA and the Olympics for over 40 years.) Finally, Universal Studios has