Core Viewpoint - Activist investor Ancora Holdings is opposing Warner Bros. Discovery's (WBD) proposed $72 billion sale of its movie and TV studios and HBO Max streaming service to Netflix, favoring a rival all-cash bid from Paramount Skydance valued at approximately $78 billion [1][2]. Group 1: Ancora Holdings' Position - Ancora Holdings has built a stake in WBD valued at about $200 million and is considering a proxy fight if the board does not negotiate with Paramount over its offer [3]. - Ancora has raised concerns regarding the Netflix deal, labeling it as "uncertain and inferior," and has criticized the planned Discovery Global spinoff that would burden cable-TV networks with around $17 billion in debt [5]. - Ancora has questioned CEO David Zaslav's motivations, suggesting he may favor the Netflix deal to secure an executive role with the streaming company post-transaction [4]. Group 2: Paramount's Offer - Paramount has made a cash offer of $30 per share for WBD, which includes a "ticking fee" of 25 cents per share for each quarter the deal remains unclosed after the end of 2026, potentially amounting to $650 million in cash value for every quarter [12][13]. - The revised offer also includes funding for a $2.8 billion termination fee that WBD would owe Netflix if the deal collapses, as well as eliminating a potential $1.5 billion debt refinancing cost [16]. - Paramount's offer is backed by $43.6 billion in equity commitments and $54 billion in debt commitments from major financial institutions [17]. Group 3: WBD's Response - WBD has received Paramount's amended offer and stated that its board will review it, although it has consistently recommended that shareholders reject Paramount's bid in favor of the Netflix acquisition [18].

Core Insights - Paramount has enhanced its hostile bid for Warner Bros. Discovery (WBD) by introducing a "ticking fee" and a $2.8 billion termination fee to Netflix, aiming to provide shareholders with more value and certainty [1][4] - The revised offer is fully financed with $43.6 billion in equity commitments and $54 billion in debt commitments, indicating strong backing for the acquisition [5] - WBD's market value is nearly $70 billion, with Ancora holding a stake of less than 1% but planning to continue purchasing shares [3] Bid Details - Paramount's all-cash offer remains at $30 per share, with a "ticking fee" of 25 cents per share, potentially totaling $650 million each quarter if the deal is delayed past December 31 [4] - Paramount aims to eliminate WBD's $1.5 billion financing cost related to its debt exchange offer, further enhancing the attractiveness of its bid [4] Corporate Dynamics - The acquisition would merge the largest streaming company with Warner Bros. studio and HBO, intensifying competition in the media industry [7] - Netflix previously agreed to acquire Warner Bros' studios and HBO Max assets for $27.75 per share, setting the stage for a corporate showdown [7][8] - WBD has stated it will "carefully review and consider" the revised bid from Paramount, indicating ongoing negotiations [6]

Core Viewpoint - Paramount Skydance has revised its offer to acquire Warner Bros. Discovery, introducing a $2.8 billion break fee for Netflix and a quarterly payment increase for shareholders if the deal does not close by January 1, 2027, although it remains uncertain if this will influence Warner's board, which favors a competing bid from Netflix [2][6]. Group 1: Offer Details - The updated offer includes an all-cash price of $30 per share, a termination payment, and a "ticking fee" of 25 cents per share, amounting to approximately $650 million in cash value each quarter [3]. - Paramount's proposal also aims to eliminate Warner's $1.5 billion financing cost related to its debt exchange offer and provide flexibility for refinancing a $15 billion bridge loan [4]. Group 2: Financing and Commitments - The revised offer is fully financed with $43.6 billion in equity commitments from the Ellison family and RedBird Capital Partners, alongside $54 billion in debt commitments from Apollo, Bank of America, and Citigroup [4]. - A personal guarantee of $43.3 billion from Larry Ellison, co-founder of Oracle and father of David Ellison, is included in the offer [4]. Group 3: Company Statements and Reactions - David Ellison emphasized the enhancements to the bid, highlighting the commitment to providing shareholders with value certainty, a clear regulatory path, and protection against market volatility [5]. - Warner Bros. Discovery acknowledged receipt of the new offer and stated it would carefully review it, but the board remains committed to its agreement with Netflix and advised shareholders not to act on Paramount's tender offer at this time [6].

Market Overview - The market is experiencing volatility, with a recent rally bringing positive sentiment, particularly for those with retirement accounts [2][16] - The Dow has seen significant movement, with a 1200-point increase and a 4% jump in technology stocks, indicating strong market participation [16] Economic Indicators - Expectations for the upcoming jobs report include the addition of 55,000 new jobs, an increase from the previous period's 50,000 [11] - The unemployment rate is projected to remain at 4%, with wage inflation expected to decrease by 0.1% [12] Federal Reserve Outlook - The Federal Reserve is likely to remain data-dependent, focusing on employment and inflation metrics, with potential rate cuts anticipated later in the year [14][15] - A June rate cut of 25 basis points is considered possible, with further cuts contingent on rising unemployment and decreasing inflation [15] Sector Performance - The technology sector, while previously trading at a 62% premium, has seen its valuation cut to a 27% premium, indicating a correction [9] - Earnings in the tech sector are expected to grow by over 30% in 2026 and another 20% in 2027, suggesting a favorable outlook for investors [10] Year-End Projections - The S&P 500 is projected to end the year with a sub-7% gain, targeting around 7400, consistent with historical performance in midterm election years [18][19] - Defensive sectors such as healthcare and energy are showing signs of improvement and may be good bets for the year [21]

Core Insights - The firm reported a 13% increase in adjusted fourth-quarter earnings [1] - The company raised a record $228 billion in new capital for the year [1] Financial Performance - Adjusted fourth-quarter earnings increased by 13% [1] - The total new capital raised for the year reached $228 billion, setting a record [1]

MATT: GOOD SUPER BOWL MONDAY MORNING, 30 MINUTES TILL THE START OF THE CASH TRADE. DANI:BLOOMBERG OPEN INTEREST STARTS RIGHT NOW. MATT: A FARM A FIGHT WITH NOVO NORDISK REBOUNDS AS HYMNS AND HERS PULLS A COPYCAT VERSION OF ITS WEGOVY WEIGHT LOSS PILL.DANI: ADDING TO THE AI INVESTMENT BORROWING BOOM. MATT: CHINA URGES BANKS TO CURB TREASURY EXPOSURES WILL GOLDMAN TELLS TRADERS TO BUCKLE UP FOR THE WEEK AHEAD. NOT A LOT OF MASSIVE MOVEMENT.DANI: BY THE END OF THE WEEK THE S&P HAD BARELY MOVED. >> EVEN THOUGH ...

Apollo nears $3.4B loan to fund Nvidia chip purchases for leasing to Elon Musk's xAI. https://t.co/tQaFS38xA7 ...

Apollo is teaming up with Schroders to develop funds for wealth and pension clients, a partnership the firms expect to ultimately raise billions of dollars in assets every year https://t.co/jMOqIf1oY9 ...

Altice USA lenders including Apollo, BlackRock and Oaktree asked a judge to dismiss a lawsuit accusing them of colluding https://t.co/vshW558JL0 ...

Blackstone (NYSE:BX) has secured regulatory approval to buy a 9.99 percent stake in Federal Bank.Blackstone's investment will be conducted through a Singapore-based affiliate, Reuters first reported.It is understood that this deal would make the private equity firm the largest shareholder in the bank and will give Blackstone the right to nominate an executive director to the lenders board.In December, Blackstone received approval from the Competition Commission of India (CCI) to invest in Federal Bank throu ...