Core Viewpoint - The acquisition of Warner Bros. Discovery's studios and streaming division by Netflix for $72 billion is being criticized as an antitrust "nightmare" that could negatively impact workers and consumers, with bipartisan concerns emerging regarding the deal's implications for market competition and consumer choice [1][2][3]. Group 1: Political Reactions - Senator Elizabeth Warren described the deal as a threat to competition, suggesting it could lead to higher subscription prices and fewer choices for consumers [3][6]. - Republican Senator Mike Lee expressed that the acquisition should raise alarms for antitrust enforcers globally, warning it could end the "Golden Age of streaming" for content creators and consumers [5][9]. - Other Republican lawmakers, including Senator Roger Marshall and Representative Darrell Issa, have called for scrutiny from US antitrust enforcers, arguing that reduced competition could lead to fewer theatrical releases from Netflix [7]. Group 2: Market Impact - The merger would create a media giant controlling nearly half of the streaming market, raising concerns about its potential to increase subscription costs and limit consumer options [3][6]. - Netflix's acquisition of HBO Max, which has 128 million subscribers, would significantly enhance its market position, combining it with Netflix's existing 300 million subscribers [7][10]. Group 3: Company Position - Netflix has positioned the deal as beneficial for consumers, claiming it would create jobs and provide subscribers with more content, aligning with current governmental focuses on affordability [2][11]. - CEO Ted Sarandos expressed confidence in the regulatory process, asserting that the deal is pro-consumer, pro-innovation, and pro-worker [11][15].

Joining us now is Jonathan Caner, former assistant attorney general for the antitrust division at the DOJ, also a CNBC contributor. We're lucky to have you close with us on this story. So, is Ted right that to feel confident that this is going to get all the approvals from the regulators.>> Well, Sarah, I think we've seen this movie before and it's called Spirit JetBlue. uh Spirit had the opportunity uh to do a deal with a less risky buyer and instead it took the premium and sold to a more risky buyer in Je ...

Core Viewpoint - Netflix has announced a deal to acquire Warner Bros. Discovery (WBD) for $72 billion, which includes HBO and the Warner Bros. studio, but the deal faces potential regulatory hurdles under the current U.S. administration [1]. Group 1: Deal Overview - The acquisition marks a significant shift in the media landscape, as Netflix aims to strengthen its position against competitors like HBO [1]. - The deal requires regulatory approval, specifically from the U.S. president, which raises questions about its feasibility given the current political climate [1]. Group 2: Competitive Landscape - Paramount CEO David Ellison is actively opposing the Netflix-WBD deal, arguing it should be blocked on antitrust grounds [2]. - Ellison's efforts include lobbying at the White House, indicating a strategic move to influence regulatory decisions [2]. Group 3: Legal and Strategic Maneuvers - If Ellison is successful, the Department of Justice may pursue legal action to block the acquisition, reminiscent of past antitrust cases during Trump's presidency [3]. - The Ellison family has alternative strategies, including a potential hostile takeover or legal action against WBD for not considering their offer seriously [4][5]. Group 4: Implications for WBD - WBD's decision to accept Netflix's offer, which involves a $5.8 billion breakup fee if the deal fails, suggests a preference for Netflix's proposal over Paramount's bid for the entire company [5]. - The competitive tension between Netflix and Paramount highlights the evolving dynamics in the media industry, particularly regarding relationships with political figures [6].

Netflix pitched its $72 billion acquisition of Warner Bros Discovery's studios and streaming division as aligned with the priorities of President Donald Trump's competition enforcers on Friday, but in... ...

Uh we got regulation to worry about and approvals not just here in the states but elsewhere. Let's bring in Aean Jabers. David, stick around.Uh Aean, as for the president, uh whether he wants to disrupt this deal and we know about his ties to Ellison's father. Talk a bit about that, too. >> Yeah, Carl, we're getting some news here.Our first reaction now from the administration. And I was just in contact moments ago with a senior administration official who tells me that the administration's view of this dea ...

agreeing to acquire Warner Brothers following the separation of Discovery Global. Cash and stock transaction has an equity value of $72 billion. This is what Ted Sarandos had to say about it on the conference call.>> We can't stand still. We need to keep innovating and investing in stories that matter most to audiences. And that's what this deal is all about.The combination of Netflix and Warner Brothers creates a better Netflix for the long term. It sets us up for success for decades to come. Warner Brothe ...

Core Viewpoint - The acquisition of Warner Brothers by Netflix, valued at $72 billion, is aimed at enhancing Netflix's long-term content strategy and market position, emphasizing the need for continuous innovation and investment in significant stories for audiences [1][2]. Financial Aspects - The deal has an equity value of $72 billion, with approximately 85% of the consideration being cash and the remainder in stock [4]. - Netflix's willingness to pay a significant premium for Warner Brothers, especially given the previous low stock price of the company, indicates a strong belief in the value of the acquisition [3][4]. - The transaction is expected to leverage Netflix's financial position, with a debt level projected to exceed four times EBITDA due to the cash portion of the deal [10]. Competitive Landscape - The merger positions Netflix as a potential leader in content creation, with Warner Brothers' extensive library enhancing its competitive edge [2]. - Paramount's bid of $30 per share in cash for its entire company highlights the competitive dynamics in the media industry, with Netflix's offer being more focused on specific assets [6][22]. Regulatory Considerations - There are significant concerns regarding potential antitrust scrutiny, especially given the merger of two major players in the streaming market [11][14]. - The regulatory process could take up to two years, raising questions about the future of the deal and its implications for Netflix's business model [14][21]. Market Reactions - Following the announcement, Netflix's stock has faced downward pressure, reflecting investor concerns about the strategic and financial risks associated with the acquisition [22]. - Conversely, Paramount's shares have also declined, indicating market perceptions of its diminished competitive position following the loss of the bidding war [22]. Strategic Implications - The acquisition reflects Netflix's aggressive strategy to secure valuable content and maintain its market leadership, despite the risks involved [24][25]. - The deal's success will depend on navigating regulatory challenges and maintaining shareholder confidence in Netflix's long-term growth prospects [21][25].

Key TakeawaysU.S. President Trump has announced the approval for "Tiny Cars" to be built in America, a move that could significantly impact the domestic automotive market with gasoline, electric, and hybrid options.Major U.S. stock indices are posting gains after market open, with the Nasdaq (IXIC) up 0.32% at 23,580.19, the S&P 500 (SPX) rising 0.21% to 6,871.74, and the Dow Jones (DJI) increasing 0.14% to 47,919.46.A potential deal involving Warner Bros. Discovery (WBD) is reportedly facing "heavy skeptic ...

CRYPTOCURRENCIES ARE GAUGED FOR RISK ON RISK OFF. LOOKING AT BITCOIN $91,000. ETHER AT $3,000.AND WE'VE GOT SOME NEWS WE'RE GOING TO GO TO LITERALLY RIGHT NOW. >> THE SHARES ARE HALTED WARNER BROTHERS DISCOVERY SHARES ARE HALTED. SO I DON'T KNOW I DON'T KNOW IT COULD.>> I THINK WE ARE HERE. IT'S OUT I THINK WE'VE BEEN WAITING FOR IT. >> PRESS RELEASES OUT. >> PRESS RELEASES OUT.AND AND LET'S EXPLAIN TO THE PUBLIC WHAT'S HAPPENING HERE. >> NOT THE BIGGEST SECRET IN THE WORLD THAT NETFLIX. >> NETFLIX IS THE W ...

According to a media report, the company's planned $16 billion-plus acquisition is advancing.It appears that Constellation Energy Group (NASDAQ: CEG) is closing in on a major acquisition that will significantly expand its business. A media report stated that the company is in talks with the federal government to assuage antitrust concerns over the deal. Cautiously optimistic investors bought the company's stock by 2% on Thursday after the news broke.Discussing the deal with the DOJ?Near market close on Wedn ...