Traders are betting that what once looked like a potential bidding war for Warner Bros. Discovery Inc. is turning into a one horse race, with Netflix Inc. winning out over Paramount Skydance Corp. Shares of Warner Bros. fell 2.1% Thursday to close at $27.61, below the $27.75 a share offer in cash and stock that Netflix agreed to pay for the firm’s studios, streaming and HBO businesses. The move lower comes after Warner Bros. advised its shareholders to reject Paramount’s all-cash bid of $30 a share for th ...

Warner Bros. Discovery Inc. is planning to reject Paramount Skydance Corp.’s hostile takeover bid due to concerns about financing and other terms, people familiar with the matter said.After deliberating and reviewing Paramount’s bid, Warner Bros.’ board will urge shareholders to reject the tender offer, said the people, who asked not to be identified discussing confidential information. The board still views the company’s existing agreement with streaming leader Netflix Inc. as offering greater value, certa ...

Paramount's $30 all-cash offer provides greater value and certainty to WBD shareholders December 8, 2025 Disclaimer This presentation is provided for informational purposes only and for no other purpose. Certain information contained herein has been obtained from published sources prepared by third parties that Paramount Skydance Corporation ("Paramount") believes to be reliable. Moreover, certain information in this presentation is based on assumptions, estimates and other factors that were available to Pa ...

(Bloomberg) -- Paramount Skydance Corp. said a report that it’s working with a consortium of Middle Eastern sovereign wealth funds on a $71 billion offer for Warner Bros. Discovery Inc. is inaccurate.Variety reported that David Ellison’s Paramount Skydance is working with Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority and the Abu Dhabi Investment Authority on a bid, citing people familiar with the talks.“The information Variety published is categorically inaccurate,” a spokesperson fo ...

Market Overview - The bull run in Wall Street that began in early 2023 faced challenges last month, primarily due to a significant rally in the technology sector driven by generative AI growth [1] - Market participants have experienced increased pain, with U.S. stock markets in negative territory year-to-date and the Nasdaq Composite in correction [2] - Key factors contributing to this downturn include overstretched valuations of AI stocks, recession fears in the U.S. economy, uncertainty regarding future interest rate cuts by the Fed, and competition from low-cost generative AI platforms from China [3] AI-Powered Non-Tech Stocks - Five non-tech companies utilizing extensive AI applications are recommended for investment: PayPal Holdings Inc. (PYPL), Visa Inc. (V), Upstart Holdings Inc. (UPST), Netflix Inc. (NFLX), and Johnson Controls International plc (JCI) [4][5] PayPal Holdings Inc. (PYPL) - PYPL is experiencing robust growth in total payment volume, with improved customer engagement and rising adoption rates across platforms [7] - The company leverages AI to enhance transaction efficiency and consumer insights, with platforms like Fastlane and Ads providing a technological edge [8] - Expected revenue and earnings growth rates for PYPL are 3.7% and 8% respectively, with a Zacks Consensus Estimate for earnings improving by 2.4% in the past 60 days [9] - PYPL's current valuation metrics indicate an attractive position compared to peers, with a forward P/E of 13.58X, P/S of 2.12X, and P/B of 3.30X [10] - The average price target suggests a potential increase of 36.2% from the last closing price of $68.62, indicating a maximum upside of 82.2% [11] Visa Inc. (V) - Visa's strategic acquisitions and alliances are driving long-term growth, with expected net revenue growth in low double-digits for fiscal 2025 [12] - The shift to digital payments and increased demand for AI-driven services, particularly in fraud prevention, are beneficial for Visa [13] - Visa has invested $3.5 billion over the past decade to enhance its data platform, preventing $40 billion in fraud attempts annually [14] - Expected revenue and earnings growth rates for Visa are 10.2% and 12.4% respectively, with a current dividend yield of 0.71% [15] - The average price target indicates a potential increase of 15.2% from the last closing price of $332.84, with a maximum upside of 23.2% [16] Upstart Holdings Inc. (UPST) - UPST operates as an AI lending platform, partnering with banks to provide affordable credit across various lending segments [17] - The company's AI-driven credit risk models allow for more approvals at lower APRs, enhancing efficiency and fraud detection [18] - Expected revenue and earnings growth rates for UPST are 59.3% and over 100% respectively, with earnings estimates improving significantly in the past 30 days [19] - The average price target suggests a potential increase of 61.5% from the last closing price of $49.66, indicating a maximum upside of 117.5% [21] Netflix Inc. (NFLX) - Netflix utilizes AI and machine learning to enhance user experience through personalized content recommendations [22] - The company reported strong engagement levels, with an average of two hours of viewing per member per day [22] - Expected revenue and earnings growth rates for Netflix are 14% and 24% respectively, with earnings estimates improving by 4% in the past 60 days [25] - The average price target indicates a potential increase of 20% from the last closing price of $919.68, suggesting a maximum upside of 62.4% [26] Johnson Controls International plc (JCI) - JCI is benefiting from strong demand in its Building Solutions segment, particularly in HVAC and security [27] - The company is investing in digital offerings, enhancing its AI capabilities through the OpenBlue platform [28] - Expected revenue and earnings growth rates for JCI are -11.9% and -1.9% respectively, with a current dividend yield of 1.92% [30] - The average price target suggests a potential increase of 23.4% from the last closing price of $78.68, indicating a maximum upside of 33.5% [31]

Founder-Run Companies Overview - Founder-led companies often reflect the vision and principles of their founders, showcasing a unique commitment to innovation and risk-taking [1][3] - Successful founder-owners like Elon Musk, Warren Buffett, and Jeff Bezos have created trillion-dollar companies that have redefined their respective industries [2] Performance of Founder-Led Companies - Founder-led companies tend to outperform their peers; a Bain & Company study indicates that an index of S&P 500 companies with founder involvement performed 3.1 times better over a 15-year period from 1999 to 2014 [6] Notable Founder-Run Companies - **NVIDIA Corporation**: Market cap of $2.698 trillion, a leader in visual computing technologies, evolving from PC graphics to AI-based solutions [7] - **Netflix**: Market cap of $387.7 billion, a pioneer in streaming, focusing on original content and international growth [10][12] - **Tesla**: Market cap of $847.4 billion, transitioning from an EV maker to a technology innovator with strong prospects in AI and energy storage [14][15] - **Meta Platforms Inc.**: Market cap of $1.591 trillion, the largest social media platform, focusing on AI tools and metaverse development [17][19] Growth Opportunities - NVIDIA is capitalizing on the growing demand for datacenters as businesses shift to cloud solutions, driving GPU demand [9] - Netflix is diversifying its content portfolio and expanding into price-sensitive regions with low-priced mobile plans [12] - Tesla's growth is supported by its Energy Generation & Storage segment and advancements in AI, including Full Self-Driving technology [15][16] - Meta is investing heavily in AI infrastructure and metaverse initiatives, aiming to enhance user experience and engagement [18][19]

Core Insights - Netflix Inc. has experienced significant subscriber growth in the last two years due to its crackdown on password sharing [1] - The growth is primarily attributed to users who previously relied on others' login credentials now subscribing for their own accounts [1] Subscriber Growth - The surge in subscribers is linked to the enforcement of policies against password sharing [1] - Research firm MoffettNathanson indicates that this growth may soon plateau as the initial wave of new subscribers is largely exhausted [1]

Group 1: Subscription Economy Overview - Subscription-based services provide companies with a steady and recurring revenue stream, reducing volatility compared to hardware sales [1] - These services generate predictable income, enhancing financial stability and fostering long-term customer engagement [1] Group 2: Apple Inc. Services Segment - Apple Inc. exemplifies the subscription trend with its Services segment, which includes the App Store, Apple Music, iCloud, Apple TV+, and Apple Arcade & Fitness+ [2] - The Services segment has grown from $78.1 billion in 2022 to $96.2 billion in 2024, reflecting a 13% year-over-year increase [2] - This segment boasts high gross margins of 73.9%, significantly higher than the 37.2% margins of its hardware business, making it a key driver of overall profitability [2] Group 3: Netflix and Sony in Subscription Market - Netflix remains the dominant player in subscription-based streaming with over 250 million subscribers and reported $10.25 billion in revenues for Q4 2024, marking a 16% year-over-year growth [4] - Sony's PlayStation Plus saw a 20% revenue increase in Q3 of fiscal year 2024, driven by price adjustments and a shift toward higher-tier subscriptions [6] Group 4: Integration with Apple - Netflix benefits from Apple's App Store ecosystem, allowing easy access for iOS users, although it has moved away from Apple's in-app payment system [5] - Sony collaborates with Apple through compatible PlayStation controllers and content licensing from Sony Pictures for Apple TV+, enhancing both companies' ecosystems [7] Group 5: Cross-Company Dynamics - Netflix and Sony are interconnected with Apple's growth in services through various integrations, with Apple's ecosystem facilitating subscriber acquisition and retention for both companies [8] - The collaboration among Apple, Netflix, and Sony encourages consumers to embrace paid digital entertainment, driving industry growth [8] Group 6: Future Growth Potential - Subscription-based services are identified as a high-margin and high-growth business model, with companies like Netflix and Sony positioned to benefit from the ongoing shift toward digital entertainment and cloud-based services [10]