Group 1 - Warner Discovery was considered essential for Paramount, indicating a strategic alignment between the two companies [1] - The outcome of the relationship is viewed positively for shareholders, suggesting potential value creation [1]

Core Viewpoint - The bidding war for Warner Bros Discovery has concluded, with Netflix exiting the contest and Paramount winning the acquisition, leading to significant stock price increases for both companies [1]. Group 1: Company Actions - Netflix shares rose over 9% in premarket trading after announcing its withdrawal from the Warner Bros bidding war, citing that the required price exceeded financially sound limits [1]. - Paramount's stock increased by approximately 10% following its successful bid for Warner Bros, which included a revised offer of $31 per share, surpassing Netflix's $27.75 offer [1]. - Paramount Skydance, backed by billionaire Larry Ellison, enhanced its bid and financing commitments, including a termination fee of $7 billion and $45.7 billion in equity [1]. Group 2: Market Reactions - The market reacted positively to the conclusion of the bidding war, with analysts suggesting that the outcome is perceived as a win for both Netflix and Paramount [1]. - Warner Bros shares experienced a slight decline, reflecting the competitive dynamics of the acquisition process [1]. Group 3: Regulatory Considerations - The potential merger between Paramount and Warner Bros is expected to face significant antitrust scrutiny in the U.S. and Europe, with ongoing investigations in California [1]. - Analysts believe that Paramount's relationship with the current presidential administration may mitigate regulatory concerns, referencing a precedent set by the Disney-Fox merger [1].

Core Viewpoint - Warner Bros. Discovery's board has deemed Paramount Skydance's revised cash offer of $31 per share as superior to the existing Netflix merger agreement, prompting Netflix to respond within four days [1] Group 1: Paramount's Bid - Paramount has submitted a revised all-cash bid of $31 per share to acquire Warner Bros. Discovery in its entirety [1] - If the bid is approved, Paramount would incur a $2.8 billion termination fee owed to Netflix for backing out of their agreement, along with a daily ticking fee of $0.25 per share per quarter starting after September 30, 2026 [2] - Paramount would also be liable for $7 billion if the deal fails to meet regulatory requirements [2] Group 2: Netflix's Position - Netflix has been formally notified of the new bid and has the option to revise its offer or withdraw from the deal [3] - The decision on which proposal is superior will be made by Warner Bros. Discovery's board and its financial and legal advisors [3] Group 3: Background of the Deals - The original merger-acquisition plan between Netflix and Warner Bros. Discovery was announced on December 5 for $83 billion, which included stocks and cash [4] - The deal would allow Netflix to acquire HBO, HBO Max, and the Warner Bros. studio business [4] - Paramount's attempts to acquire Warner Bros. Discovery have led Netflix to switch to an all-cash deal in January [4] Group 4: Current Context - The announcement coincides with Warner Bros. Discovery's Q4 earnings call and a visit by Netflix's co-CEO to Washington, DC, amid the Paramount bid [5] - Opposition to the WBD-Netflix deal has been expressed by 11 state attorneys general, while President Trump stated he would not intervene in the situation [5]

Core Insights - Warner Bros. Discovery reported higher-than-expected fourth-quarter core earnings and is "well positioned" for long-term success while evaluating competing takeover proposals from Paramount Skydance and Netflix [1] - The company reiterated its existing merger agreement with Netflix but acknowledged that Paramount's revised offer could lead to a superior proposal [1][3] Financial Performance - For the fourth quarter, adjusted core earnings before interest, taxes, depreciation, and amortization totaled $2.22 billion, down 19% from the prior year but exceeding Bloomberg consensus estimates of $2.11 billion [4] - Revenue declined 5.7% to $9.46 billion, although this figure surpassed expectations [4] Takeover Proposals - Paramount raised its bid to $31 per share for Warner Bros., increasing the termination fee from $5.8 billion to $7 billion if regulatory approval is not obtained [2] - Netflix's offer stands at $27.75 per share for Warner Bros.'s studios and HBO Max streaming business, while Warner Bros. plans to spin off its traditional television operations into a separate entity [3] Studios Segment Performance - The studios segment showed a 52% year-over-year increase in core profit to $2.55 billion, excluding currency effects, with early momentum noted in the division [5] - Streaming subscribers reached nearly 132 million, exceeding the target of 130 million set in August 2022, with expectations to surpass 140 million by the end of the current quarter [5]

Paramount Skydance may finally have the upper hand on Netflix in the bidding war for Warner Bros. Discovery. The WBD board announced on Thursday afternoon that it believes Paramount's offer to buy the entire company for $31 per share is better than Netflix's proposal to buy its studio and HBO assets for $27.75 per share.This story will be updated. ...

Group 1: NVIDIA Earnings and Market Reaction - NVIDIA's stock is down 5%, marking a significant shift in sentiment despite a strong earnings report that showed a 73% increase in revenue for the quarter [2][44]. - The company provided a fiscal first-quarter sales forecast of $78 billion, which does not include any contributions from data center revenues from China [2][12]. - Concerns from investors center around the sustainability of AI spending and the need for new growth narratives from NVIDIA's leadership [4][10]. Group 2: Growth and Market Position - NVIDIA's growth is being driven by a diversification of its customer base, with 50% of demand coming from hyperscalers, indicating a broadening adoption of AI technologies [10][11]. - The company has visibility extending well into 2027, with expectations of at least 30% growth by that year [12][62]. - Networking business is gaining market share, which is a positive sign as it suggests AI momentum is spreading beyond hyperscalers to smaller enterprises [8][9]. Group 3: Competitive Landscape and Future Outlook - The competitive landscape in AI is intense, with major players like Google and OpenAI vying for leadership, which may impact NVIDIA's future growth [15][16]. - Jensen Huang, NVIDIA's CEO, expressed confidence in cash flow growth, emphasizing the need for compute capacity to drive revenues [13][14]. - The market is currently skeptical about the cyclical nature of AI spending, which could affect NVIDIA's performance moving forward [42][81]. Group 4: Snowflake Earnings and Market Position - Snowflake reported a forecast of $1.26 billion in product revenue for the current quarter, reflecting a 27% year-over-year growth [18]. - The company has successfully launched several new products and services, contributing to a top-line revenue of $2.2 billion, growing over 30% [68]. - Snowflake's technology platform is positioned as a key enabler for future growth, allowing for lower costs and enhanced product offerings [68][72]. Group 5: Warner Bros. and Paramount Earnings - Warner Bros. reported a 6% decline in revenue, while Paramount's revenue increased by 11%, indicating differing performance in the media sector [30][34]. - Paramount is focusing on subscriber growth for its streaming service, aiming for 150 million subscribers by the end of the year [31]. - The ongoing bidding war for Warner Bros. is overshadowing its financial results, with implications for its future market position [33][39].

Warner Bros. in Burbank (Eric Thayer/Los Angeles Times) As Paramount Skydance's bid for Warner Bros. Discovery stretched into the stratosphere, a painful truth emerged. Paramount's core television business, which includes CBS, Comedy Central and MTV, is rapidly shrinking and its Melrose Avenue movie studio lost money. Paramount this week reported a $339-million operating loss in last year's fourth quarter, which included a half-billion dollars in restructuring costs following Paramount's August takeover ...

Nvidia, Sandisk, IonQ, D-Wave Quantum, Paramount, J.M. Smucker, Salesforce, and More Movers - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# These Stocks Are Today's Movers: Nvidia, Sandisk, IonQ, D-Wave Quantum, Paramount, J.M. Smucker, Sal ...

Warner Bros. Discovery narrowed its losses in the fourth quarter as it was caught in a pas de trois with Paramount and Netflix over the sale of the company. The media giant reported a $252 million loss during the fourth calendar quarter of last year. That comes following a $494 million loss a year ago. Subscribers to HBO Max, meanwhile, topped 132 million, a 15 million jump from the fourth quarter of 2024. The streaming subscriber increase came as HBO Max launched in Germany and Italy. Pending launches ...

The bidding war with Paramount could come down to what investors think Warner's cable assets are worth. ...