I think the basic concern about theaters is fair, but I’d be careful with the “everyone will sue Netflix” part. A deal like that would depend heavily on the actual distribution terms, existing contracts, and regulatory approvals. It wouldn’t automatically mean every WB movie disappears from theaters after two weeks.
The $108B figure is also the sort of thing I’d want to see backed by the actual deal terms before treating it as a straight cash comparison. With a transaction this large, financing, debt, assets included, and breakup provisions can make the headline number pretty misleading.
The more interesting issue to me is what happens to WB’s theatrical strategy. Netflix has historically approached releases very differently from a traditional studio, while Paramount has a much stronger incentive to preserve the theatrical ecosystem. That difference could matter considerably more than the headline valuation.