Warner Bros. Discovery Inc. is gearing up towards accepting a superior all-cash proposal from Paramount Skydance Corp., after streaming video major Netflix Inc. dropped its bid to take over the media and giant. In the latest develpoment in the merger of majors, Netflix declined to raise its offer, stating that the deal, if revised to match Paramount Skydance's suprior proposal, will no longer be financially attractive.Following the news, shares of Netflix and Paramount Skydance were gaining around 8.7 perc ...

Paramount Skydance Corp. raised its offer to buy Warner Bros. Discovery Inc., extending the long-running battle for one of Hollywood’s iconic studios, according to people familiar with the matter.The new, unspecified bid improves on the $30-a-share, all-cash proposal that Paramount took directly to Warner Bros. shareholders on Dec. 8 and addresses some of the company’s concerns with previous Paramount bids, according to the people, who asked to not be identified because the details aren’t public. Those conc ...

Core Viewpoint - Paramount Skydance Corp.'s CEO David Ellison is attempting to make a final offer for Warner Bros., which could disrupt Warner's existing agreement with Netflix Inc. [1] Group 1: Paramount's Bid - Warner Bros. has agreed to reopen negotiations with Paramount after receiving a revised proposal that improved some terms [2] - Paramount plans to increase its bid to at least $31 per share if Warner's board engages in discussions [2] - This marks the first increase in Paramount's proposed bid since Warner Bros. agreed to sell the majority of its business to Netflix for $27.75 per share in December [3] Group 2: Warner Bros. and Netflix Agreement - Warner Bros. has a binding agreement to sell its studios and HBO Max streaming service to Netflix for $72 billion, with a shareholder vote scheduled for March 20 [7] - Warner Bros. CEO David Zaslav emphasized the focus on maximizing value for WBD shareholders [6] Group 3: Market Reactions - Warner Bros. shares rose by 2.7% to close at $28.75, while Paramount shares increased by 4.9% to $10.83 [6] - Netflix's stock remained relatively unchanged at $77 [6] Group 4: Negotiation Dynamics - Netflix has allowed Warner Bros. seven days to discuss Paramount's latest proposal, indicating a competitive atmosphere [4][8] - Netflix co-CEO Ted Sarandos noted that the reopening of talks was prompted by Paramount's aggressive approach, which he described as creating confusion [8]

President Donald Trump signaled a major shift in his administration’s approach to the media landscape on Wednesday, announcing he will not personally intervene in the blockbuster $82.7 billion merger between Netflix Inc. (NASDAQ:NFLX) and Warner Bros. Discovery Inc. (NASDAQ:WBD). Reversal Of Influence In an interview with NBC News anchor Tom Llamas, the President reversed his December stance, where he had suggested he would be “involved in that decision” due to concerns over market concentration. Instead, ...

Group 1: Netflix Trade - Ark Invest's ARK Next Generation Internet ETF acquired 83,368 shares of Netflix Inc, valued at approximately $7.11 million, following a mixed earnings report where Netflix reported earnings-per-share of 56 cents but provided disappointing first-quarter guidance [2] - Netflix's stock closed at $85.36, down 2.18% from the previous day [2] Group 2: Tempus AI Trade - Ark's ARK Genomic Revolution ETF and ARK Innovation ETF collectively purchased 89,501 shares of Tempus AI, valued at approximately $5.85 million, after the company reported impressive revenue growth of $955 million, a 111% increase year-over-year [3][4] - Tempus AI's stock closed at $65.32, a decrease of 2.19% on Wednesday [4] Group 3: Pinterest Trade - Ark's ARKW fund sold 118,823 shares of Pinterest, valued at approximately $2.97 million, as the company projected fourth-quarter revenue of $1.31–$1.34 billion, slightly below estimates [5] - Pinterest's stock closed at $24.99, down 1.58% [5] Group 4: Other Key Trades - Ark sold 21,286 shares of Beam Therapeutics Inc. and 113,907 shares of GitLab Inc., while purchasing 111,439 shares of WeRide Inc. and 8,817 shares of Trimble Inc [7]

Core Insights - President Trump has significantly increased his bond portfolio, acquiring at least $51 million in debt securities from mid-November to late December [1] - The new financial disclosure reveals 189 bond purchases, indicating a strategy of "doubling down" on investments in specific corporations [2] - Investments align with administration priorities, including companies like Netflix, General Motors, and Boeing, which are under scrutiny or have received praise from the President [3] Market Implications - JPMorgan CEO Jamie Dimon warns that the administration's legal actions against Fed Chair Powell could destabilize markets and lead to higher interest rates, countering the benefits of Trump's bond investments [4] - Dimon predicts that the DOJ's investigation into Powell may raise inflation expectations and increase rates over time, which could have adverse effects on the market [5] - The DOJ inquiry has sparked bipartisan backlash, with political figures questioning the independence of the Justice Department and blocking new Fed nominees until the matter is resolved [6]

Group 1 - Netflix is revising terms for its acquisition of Warner Bros. Discovery, considering an all-cash offer for the studios and streaming businesses to expedite the sale process [1] - The original agreement included $23.25 in cash and $4.50 in Netflix stock for Warner Bros. shareholders, with adjustments if Netflix shares fell below $97.91; Netflix shares have decreased by about 25% since the acquisition pursuit began [2] - Netflix has secured $59 billion in financing from Wall Street banks for the acquisition, one of the largest bridge loans ever, and has refinanced $25 billion with longer-term debt, maintaining a strong balance sheet and credit ratings [3] Group 2 - Paramount Skydance Corp. is actively trying to disrupt Netflix's acquisition of Warner Bros., launching a tender offer for Warner shares and extending a personal guarantee for $40.4 billion in funding [4] - Following the news of Netflix's discussions, Warner Bros. shares rose by 1.6% to $28.86, while Netflix shares increased by 1% to $90.32 [5]

Group 1 - Netflix is revising terms for its acquisition of Warner Bros. Discovery, considering an all-cash offer for the studios and streaming businesses to expedite the sale process [1] - The original agreement included $23.25 in cash and $4.50 in Netflix stock for Warner Bros. shareholders, with adjustments if Netflix shares fell below $97.91; Netflix shares have dropped about 25% since the acquisition pursuit began [2] - Netflix has secured $59 billion in financing from Wall Street banks, one of the largest bridge loans ever, and has refinanced $25 billion with longer-term debt, maintaining robust credit ratings [3][4] Group 2 - Paramount Skydance Corp. is actively trying to disrupt Netflix's acquisition of Warner Bros., launching a tender offer and extending a personal guarantee for $40.4 billion in funding [5] - Paramount plans to nominate directors to the Warner Bros. board to block the Netflix deal [6] - Following the news of Netflix's discussions, Warner Bros. shares rose 1.6% to $28.86, while Netflix shares increased by 1% to $90.32 [7]

Core Insights - The final season of "Stranger Things" is expected to break streaming records for Netflix and positively impact its fourth-quarter financial results [1] - The finale will also be shown in theaters, potentially benefiting both Netflix and movie theater stocks like AMC and Cinemark [1][6] Netflix - Netflix has split the final season of "Stranger Things" into three parts, with the last episode set to release on New Year's Eve [2] - The company is guiding for fourth-quarter revenue of $11.96 billion, representing a 16.7% year-over-year increase, with earnings per share expected at $5.45 [10] - Growth is anticipated from higher membership figures, increased pricing, and rising advertising revenue, with a projection to more than double advertising revenue by 2025 [10] AMC Entertainment - AMC is experiencing a significant increase in showtimes for the "Stranger Things" finale, with over 3,500 showtimes across more than 620 theaters and 1.1 million seat reservations [3] - The reservation fee for the episode is $20, which converts into a concession voucher, potentially boosting AMC's food and beverage sales [4] - AMC reported a third-quarter average of $7.74 in food and beverage sales per person, the second-highest in company history, indicating strong performance in this area [4] Industry Outlook - The fourth quarter is expected to be the highest-grossing fourth quarter in six years, driven by a strong lineup of films and the release of "Stranger Things" [9] - AMC's recent data shows 5.5 million moviegoers attended screenings during the Christmas week, marking it as the second busiest week of the year [8] - The collaboration between Netflix and AMC could signify a shift in how streaming content is distributed and monetized in theaters [5]

Core Viewpoint - The competitive landscape for Warner Bros. Discovery Inc. is shifting, with Netflix Inc. emerging as the frontrunner over Paramount Skydance Corp. in the bidding process for the company [1]. Group 1: Stock Performance - Warner Bros. shares fell by 2.1% to close at $27.61, which is below Netflix's offer of $27.75 per share in cash and stock [2]. - The stock had previously traded as high as $30, reflecting investor optimism about potential bidding increases from both Netflix and Paramount, but has since dropped nearly 8% [3]. Group 2: Bidding Offers - Netflix's offer includes $23.25 in cash and $4.50 in Netflix stock per share, with the stock portion subject to a "collar" that adjusts based on Netflix's stock price at the time of closing [5]. - Paramount's all-cash bid of $30 per share includes Warner Bros.'s cable networks, which Netflix's offer does not cover [6]. Group 3: Regulatory Concerns - Both Netflix and Paramount's offers are expected to face antitrust scrutiny, leading to potentially lengthy regulatory reviews [4]. - Paramount claims a better chance of regulatory approval, while Warner Bros. believes both offers will be treated equally by regulators [4]. Group 4: Valuation of Assets - The valuation of Warner Bros.'s cable TV networks, which would be spun off in the Netflix deal, is debated, with Paramount suggesting a value of $1 per share, while analysts estimate it could be closer to $4 [6].