Well, I would say I don't want to speculate on what's going to happen from here. Um, we are pretty happy that we've presented uh a pretty strong deal and I think the Warner Brothers Discovery Board sent a pretty clear message that they believe that this is the best value. It's the most certain path forward.Our deal structure is clean. It's certain. We're a scaled company with, you know, over 400 billion market cap.We've got strong investment grade balance sheet. This deal offers flexibility for Warner Broth ...

Core Viewpoint - Warner Bros. believes that Netflix's $72 billion buyout offer is superior and urges shareholders to reject the hostile takeover bid from Paramount Skydance [1] Group 1: Offers and Valuations - Paramount's offer is $30 per Warner share, valuing the company at approximately $77.9 billion, compared to Netflix's offer of $27.75 per share [1][5] - Paramount claims its offer is worth about $79.9 billion, which is $18 billion more in cash than Netflix's bid [6] - Netflix's offer includes a combination of cash and stock, valuing Warner at $72 billion, excluding debt, but does not include Warner-owned networks like CNN and Discovery [7] Group 2: Industry Impact - A merger involving Warner Bros. would significantly alter the Hollywood landscape and is expected to face intense scrutiny from U.S. regulators [2] - The competing offers highlight the potential for combining major entertainment properties, with Netflix owning popular titles like "Stranger Things" and "Squid Game," while Paramount owns CBS and MTV [3] - The outcome of these bids will influence the dynamics of the streaming wars and the broader entertainment industry [4]

Core Viewpoint - Affinity Partners, led by Jared Kushner, is withdrawing support for Paramount Skydance's hostile takeover bid for Warner Bros. Discovery (WBD), which has been advised by its board to reject the $78 billion offer from the Ellison family in favor of a competing bid from Netflix [1][5][7]. Group 1: Affinity Partners and Paramount's Bid - Affinity Partners decided to pull out of the Paramount bid due to scrutiny surrounding Kushner's involvement, despite contributing $200 million to the offer [2][4]. - The firm stated that it believes there is a strong strategic rationale for Paramount's offer, even as it steps back from the partnership [4]. Group 2: Warner Bros. Discovery's Position - WBD's board unanimously recommended that shareholders reject Paramount's offer, citing its inadequacy and associated risks [5][13]. - The board's stance likely facilitates Netflix's acquisition of WBD's key assets, with Netflix's offer valuing WBD at $82.7 billion, or $27.75 per share, compared to Paramount's $30 per share all-cash bid [7][11]. Group 3: Competitive Landscape and Financing Concerns - WBD CEO David Zaslav has expressed a preference for the Netflix bid, highlighting concerns over Paramount's financing structure, which is linked to a revocable trust associated with Larry Ellison's wealth [11][19]. - Paramount claims its bid offers quicker value for shareholders, while Netflix's deal is perceived to face regulatory hurdles and complex financing [16][19].

Core Insights - Wall Street banks are positioned to benefit significantly from Warner Bros. Discovery's (WBD) potential sale to either Netflix or Paramount Skydance, with a total of $225 million in fees expected to be paid to advisors if a deal is finalized [1][2]. Group 1: Deal Dynamics - WBD is currently evaluating competing offers from Netflix, which aims to acquire its studio and streaming business, and Paramount, which has made a bid for the entire company, including cable TV channels [2]. - WBD's board has expressed continued support for Netflix's offer following a hostile bid from Paramount [2]. - The advisory firms involved in the bidding process have played a crucial role in board meetings, negotiations, and evaluations of the offers [2][7]. Group 2: Advisory Fees - The fee structure for the advisory firms includes significant contingent payments, with Allen & Co. and J.P. Morgan each set to receive $85 million, of which $45 million and $50 million, respectively, are contingent on a successful deal [11]. - Evercore is expected to receive $55 million, also contingent on the deal's completion [11]. Group 3: Market Context - The investment banking sector has seen a surge in activity, particularly in media and telecom mergers and acquisitions (M&A), with a reported 61% increase in deal value from the second half of 2024 to the second half of 2025, excluding the WBD sale [9]. - PwC anticipates that robust M&A activity will persist in the coming years as investors seek value in content libraries, video games, and sports assets [10].

Netflix made a compelling offer. It was heavy in cash, certainty of close, um a high termination fee. It had all and they responded to the to the operating issues that we were concerned about. Uh Peace Guy had every opportunity to deal with that broad range of issues and they chose not to.It was really, David, it wasn't really a hard choice. >> It wasn't a hard choice. No, >> not at the end.It was not a hard choice. ...

Warner Bros. Discovery’s (WBD) board of directors has rejected the $108 billion hostile takeover bid from David Ellison’s Paramount Skydance, calling the offer “illusory,” and saying that Paramount had misled shareholders about its financing. Saying it wants to honor its initial agreement to sell to Netflix, WBD’s board wrote in a letter to shareholders that Paramount “has consistently misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family.” “It does not, an ...

In Brief Warner Bros. Discovery’s (WBD) board of directors has rejected the $108 billion hostile takeover bid from David Ellison’s Paramount Skydance, calling the offer “illusory,” and saying that Paramount had misled shareholders about its financing.Saying it wants to honor its initial agreement to sell to Netflix, WBD’s board wrote in a letter to shareholders that Paramount “has consistently misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family.” “It does no ...

Core Viewpoint - Netflix is currently trading at premium multiples compared to its peers and the broader market, raising concerns about its valuation amidst a proposed acquisition of Warner Bros. assets [1][2][19]. Company Overview - Founded in 1997, Netflix is a global entertainment company providing TV series, films, documentaries, and games in over 190 countries [3]. - The company is transitioning from dominating streaming to expanding its growth through the Warner Bros. acquisition, which aims to enhance premium content and theatrical releases [3][5]. Financial Performance - Netflix's market cap is approximately $430 billion, with its share price increasing about 8% year-to-date, despite a 20% decline since June due to valuation concerns [2]. - In Q3 2025, Netflix reported paid streaming revenue of $11.51 billion, a 17% year-over-year increase, and operating income of $3.25 billion, up 12% YoY [10][11]. - Free cash flow rose to $2.66 billion, a 21% increase, with the company holding about $9.29 billion in cash against $14.5 billion in gross debt [12]. Acquisition Details - Netflix has agreed to acquire Warner Bros. Discovery's studios and HBO assets for approximately $83 billion, offering about $27.75 per share [7]. - The acquisition is framed as a growth strategy to enhance Netflix's content library and global reach, although it raises regulatory and integration risks [9][19]. Market Sentiment - Wall Street analysts maintain a cautiously optimistic view on NFLX stock, with several firms raising their price targets due to Netflix's growth momentum and strong fundamentals [15][17]. - The consensus rating for NFLX is "Moderate Buy," with an average 12-month price target of $129.37, indicating a potential upside of 34% [18].

This is breaking news. We just learned that Warner Brothers Discovery is recommending its shareholders reject Paramount's hostile takeover bid. WBD is arguing that its plan to sell most of the media company to Netflix is a better move for its shareholders.Netflix also speaking out, welcoming this decision, saying it's a this deal is a quote superior alternative for WBD stockholders. ...

Warner Bros. Discovery, Inc.'s board of directors urged shareholders to reject Paramount Skydance’s hostile takeover bid for the company, arguing that it poses "significant" risks and costs.  The media behemoth said Wednesday that members of its board determined that the tender offer from Paramount Skydance was "not in the best interests" of the company or its shareholders, and that they continue to "unanimously" recommend the Netflix merger.Warner Bros. Discovery agreed to sell its film and television stud ...