Simon Gallagher, SPG Global managing director and former Hulu/Netflix exec, says Warner would be exponentially more valuable inside Netflix. He tells "The Close" that Warner Bros. and HBO could operate as silos within Netflix to produce more premium, high-value content tied to their iconic brands. ...

I was taking a look at Bloomberg Intelligence, their report out. They crunched the numbers and basically this deal, it's 24 5.2% times forward. If you think about recent studio M&A, it's closer to a range of 15.2% or 15 to 22 times.So you could make the case that this looks expensive and I wonder where you fall. I think everyone needs to keep in mind that Warner's value inside Netflix is exponentially larger than what it might be on a standalone basis. People are valuing the Warner asset as it is today, not ...

Core Insights - The acquisition deal for Warner Brothers Discovery is valued at 24.5 times forward earnings, which is significantly higher than recent studio M&A valuations ranging from 15 to 22 times [1] - Warner's value within Netflix is expected to be much greater than its standalone value, especially considering Netflix's global reach in 190 countries compared to HBO's current footprint [2] Company Strategy - Netflix's strategy to release films in theaters is seen as a marketing channel to enhance subscriber value, allowing for a better viewing experience for marquee films [5][8] - There is a historical context where Netflix's management was initially against theatrical releases, focusing instead on delivering content directly to subscribers [4] Integration and Operations - The integration of Warner Brothers Discovery into Netflix is anticipated to involve personnel overlap and potential consolidation, but also the retention of Warner's production and development expertise [9][10] - Warner Brothers and HBO are expected to operate as distinct entities within Netflix, producing content that is perceived as premium, which could lead to discussions about different subscription tiers [11] Industry Context - The acquisition raises potential antitrust concerns as Netflix and HBO compete for the same audience, but legal analysis has likely been conducted to address these issues [12][13] - The deal could catalyze further consolidation in the industry, enhancing Netflix's competitive position and value proposition for consumers [15] - Comparisons with other platforms like YouTube and traditional broadcasters suggest that Netflix's acquisition could be defensible in the context of overall viewing hours [14]

Company - Netflix is acquiring assets from Warner Bros. Discovery, which has raised concerns about potential antitrust issues, as highlighted by Senator Warren who described the deal as an "antitrust nightmare" [3] - SpaceX is in talks to sell shares, with its valuation rising to $800 billion, indicating strong investor interest and confidence in the company's future prospects [2] - Meta is planning to cut spending on the metaverse, with Reality Labs potentially facing layoffs as early as January, reflecting a shift in focus and resource allocation [3] - Citigroup's price-to-book ratio has reached 1 for the first time in seven years, narrowing the gap with other major Wall Street banks, suggesting improved market confidence in the bank's valuation [3] - SoftBank is negotiating to acquire DigitalBridge, a data center investment company, which could enhance its portfolio in the technology infrastructure sector [3] Industry - The U.S. Treasury Secretary praised the Dell family for their support of the "Trump account" plan, indicating potential implications for the tech industry and its relationship with government policies [3] - The Swiss government is considering easing some capital regulations for UBS, which may impact the banking sector's operational flexibility and capital management strategies [3] - The U.S. is relaxing fuel economy standards for automobiles, receiving support from traditional automakers like Ford, which could influence the automotive industry's regulatory landscape and competitive dynamics [3]

Netflix stock drops 6% after earnings miss due to Brazilian tax fightBeata Zawrzel/NurPhoto Netflix stock dropped after news of its deal to buy Warner Bros. Discovery. Wall Street is lukewarm on the prospect, which would represent a big shakeup of the media business. Warner Bros. Discovery stock rose as much as 4% on the news. The move: Netflix stock fell on Friday, but pared the deepest losses after being down as much as 4%. The dip extends a string of declines in the last week, though the stock i ...

Mergers & Acquisitions - Potential Paramount acquisition involves Ellison Billions and Trump connections [1] - Amazon acquired MGM Studios for $85 billion in 2022 [1] - Netflix-Warner Brothers deal is uncertain [1] Financial Implications - Netflix anticipates $2 billion to $3 billion in cost savings per year by year three [2] - Netflix subscription prices are expected to increase if the deal with Warner Brothers closes [1] Industry Dynamics - Warner Brothers employees may need to update their resumes due to cultural differences with Netflix [2] - Wells Fargo is advising Netflix on the deal and will receive investment banking fees [2] - Goldman Sachs is also involved [3]

Core Viewpoint - China Gold International Resources Corp. Ltd. is not aware of any undisclosed material information that could explain the recent increase in its share price and trading volume [1] Company Overview - China Gold International Resources is a gold and base metal mining company incorporated in British Columbia, Canada, operating two mines: the CSH Gold Mine in Inner Mongolia and the Jiama Copper-Gold Polymetallic Mine in Tibet [2] - The company's objective is to enhance shareholder value by increasing production at existing operations, expanding its resource base, and pursuing new projects internationally [2] - The company is listed on the Toronto Stock Exchange (TSX: CGG) and the Main Board of The Stock Exchange of Hong Kong Limited (HKEx: 2099) [2]

But will the White House interfere to help Paramount Skydance? ...

Mergers and Acquisitions - The Biden administration has shown a tendency to react quickly against major mergers, but there is a belief that after regulatory review, some deals may benefit consumers [2][3][4] - There is cautious optimism regarding the potential merger involving streaming services, as it did not see a competitive bid from Paramount against Netflix [3] - The current administration is expected to conduct thorough due diligence on the merger without outright rejecting it [4][6] Consumer Impact - Approximately 60% of Americans express frustration with existing streaming services, indicating a potential market demand for consolidation [5] - Concerns have been raised about the potential for increased consumer prices if the merger proceeds, although projections on price impacts from past mergers have often been inaccurate [9][10] - The discussion around the merger includes the need for provisions to protect consumers from price hikes [7][9] Industry Context - The merger is seen as part of a broader trend in the streaming industry, where combining services could address consumer frustrations [6][8] - The financial implications of the merger, including a significant borrowing figure of $60 billion, are comparable to other mergers in the banking sector, suggesting that such deals are not unprecedented [7][8]

Group 1: Retail Sector - Ulta Beauty (ULTA) shares surged nearly 13% after reporting better-than-expected earnings and raising its full-year forecasts, driven by resilient demand in the beauty category, increased transactions, and the acquisition of British luxury cosmetics firm Space NK [4][9] - Dollar-store operators Dollar Tree (DLTR) and Dollar General (DG) saw their shares rise about 6% following strong earnings reports, indicating traction among customers from various income levels seeking deals [7][9] Group 2: Healthcare Sector - Moderna (MRNA) stock jumped close to 9% after a long-term study in France indicated that its COVID-19 vaccine is safe and effective, showing a 75% lower risk of dying from COVID-19 for vaccinated individuals compared to the unvaccinated [5][9] - Cooper Companies (COO) exceeded quarterly earnings forecasts and provided an optimistic outlook, with shares climbing around 6% following the announcement of a strategic review aimed at simplifying its business [6][9] Group 3: Media and Entertainment Sector - Netflix (NFLX) agreed to acquire Warner Bros. Discovery's studio and streaming business in an $83 billion deal, impacting shares of Paramount Skydance (PSKY) which fell nearly 10% as a result of the competitive bidding landscape [8][9] - Warner Bros. Discovery's stock climbed more than 6% following the acquisition announcement, while Netflix shares slipped about 3% [8][9] Group 4: Market Overview - Major U.S. equities indexes moved higher after a key inflation report came in lower than anticipated, with the S&P 500 and Dow edging 0.2% higher and the Nasdaq rising 0.3% [3][9]