After the failed merger, Netflix's "Plan B": Top investors suggest "quickly knocking on Sony's door".

Portfolio manager Mario Gabelli said that after streaming giant Netflix (NFLX.US) lost in its bid to acquire Warner Bros. Discovery (WBD.US), it should consider partnering with Sony Group to strengthen its IP strategy in the increasingly competitive streaming market. As the founder, chairman, and CEO of Gamco Investors Inc., Gabelli stated that Netflix's global distribution capabilities could be amplified by tapping into Sony's expanding anime portfolio. "There are always winners and losers," he said, adding that Netflix should "knock on Sony's door." Data shows that as of December 31, Gamco and its affiliates manage close to $35 billion in assets and hold nearly 6 million shares of Warner Bros. Discovery. Gabelli also holds shares in Netflix and Paramount Sky (PSKY.US), the winner of the Warner Bros. bidding war. He said that he is advising clients to reassess their media holdings and prepare for increased trading activity. "This is a great time," Gabelli said in an interview. He described the current mergers and acquisitions (M&A) environment as more active than last year, driven by divestitures, financial engineering, and the belief that regulatory agencies are more likely to approve deals in an improved financing backdrop. In addition to the media industry, Gabelli also pointed out the "razorblade" business products that require regular purchases, such as tire businesses targeting an aging fleet of vehicles in the United States. In the sports sector, he emphasized the value of team franchise assets and Madison Square Garden Sports Corp (of which Gamco is an investor), citing potential value in asset spin-offs or partial sales. He noted that leagues like the NFL are increasingly accepting private equity investments, creating new ownership structures. Global events like the World Cup could also enhance the value of football-related assets, including Manchester United Plc Class A football club (whose largest shareholder is British billionaire Jim Ratcliffe). As global interest in football grows, further monetization opportunities may arise.