The bidding war for Warner Bros. Discovery (WBD) and its extensive library of hit TV shows and films like “Harry Potter,” “Game of Thrones” and the DC Comics titles, is dragging on. The studio on Wednesday said its board had unanimously rejected Paramount Skydance’s revised $108.4 billion bid, calling the proposal a “leveraged buyout” that would saddle the company with $87 billion in debt. In a letter to shareholders, WBD urged them to reject the offer, saying the “extraordinary amount” of debt Paramount w ...

Paramount, with facilities in Hollywood, is continuing to pursue Warner Bros. Discovery. (Robert Gauthier / Los Angeles Times) Paramount's campaign to acquire Warner Bros. Discovery was dealt another blow Wednesday after Warner's board rejected a revised bid from the company. The board cited the enormous debt load that Paramount would need to finance its proposed $108-billion takeover. Warner’s board this week unanimously voted against Paramount’s most recent hostile offer — despite tech billionaire Lar ...

Warner Bros Discovery (WBD) has again told its shareholders to reject an “inadequate” $108.4bn (£80bn) hostile takeover bid by Paramount Skydance amid an extraordinary corporate battle to control the media conglomerate.Paramount, controlled by the billionaire Ellison family, had sought to combat WBD’s criticism of its offer and claims it had “consistently misled” investors by saying it had a “full backstop” – a safety net to ensure it has sufficient funds – from the Ellisons.Larry Ellison, co-founder of Ora ...

A sign is posted in front of Electronic Arts headquarters in Redwood City, Calif. (Justin Sullivan / Getty Images) Saudi Arabia's Public Investment Fund could reportedly own nearly all of Electronic Arts Inc. under the buyout plan for the video game giant. The Saudi fund would own 93.4% of Redwood City-based EA, according to a Wall Street Journal report Tuesday, which cited a recent filing with a Brazilian antitrust regulator. Private equity firm Silver Lake Partners would own 5.5% of the gaming company, ...

SmileStudioAP/iStock via Getty Images Fall 2025 Market Commentary Despite geopolitical upheavals, tariff and trade uncertainties, global equity markets had a very strong third quarter. The US economy and market have been boosted by a pause in punitive tariffs and a robust capital investment boom in Artificial Intelligence (AI). By some measure up to half of the 3.8% gain in GDP was attributable to tech capital spending. A surge in global defense outlays have helped boost the aerospace and defense industr ...

Group 1 - Keurig Dr Pepper (KDP) secured $7 billion from KKR, Apollo Global Management, and Goldman Sachs for a leveraged buyout, with $4 billion allocated for new K-Cup pods and $3 billion for preferred convertible stock [1] - KDP raised its annual sales forecast, resulting in an approximately 8% increase in its share price, with net sales climbing 11% in the most recent quarter, driven by a 14% increase in beverage sales [2] - Dr Pepper has become the second-most popular soda in America, surpassing Pepsi's market share [2] Group 2 - The recent investment from private equity firms may shield KDP from activist investors like Starboard, while PepsiCo faces similar pressures from Elliott Management, which acquired a $4 billion stake [3] - The beverage sector's sales increased by less than 2% last quarter, with KDP's coffee business facing challenges due to droughts and tariffs in Brazil and Vietnam [5] - KDP announced an $18 billion acquisition of JDE Peet's and plans to separate its coffee business from its soda operations, but the stock fell 20% following the news, attracting interest from activist investor Starboard [5]

Core Insights - Electronic Arts (EA) has been sold to a consortium for US$55 billion, marking a significant private equity buyout in the video game industry [1][3] - The consortium includes Silver Lake Partners, Saudi Arabia's Public Investment Fund (PIF), and Affinity Partners [2] - EA's shares were valued at US$210, representing a 25% premium for shareholders [3] Company Overview - EA is a major player in the video game industry, known for franchises like The Sims and Battlefield, but has faced criticism for poor labor practices and a focus on online gaming [4][5] - The company has been accused of negatively impacting beloved franchises through its business practices, particularly with microtransactions [5][6] Market Context - The global video game industry surpasses the combined value of the film and music industries, highlighting its economic significance [4] - EA has experienced slowing growth, leading to the cancellation of games and layoffs of nearly 2,000 workers since 2023 [8] Investment Dynamics - The PIF has been actively investing in entertainment, including sports and video games, as part of a strategy to improve its global image [9][11] - The acquisition of EA is seen as a potential avenue for "game-washing," leveraging the entertainment value of video games to counteract negative perceptions of Saudi Arabia [12] Financial Structure - The buyout is a leveraged acquisition, with US$20 billion of the purchase price funded through debt, raising concerns about future layoffs and cost-cutting measures [14][15] - The debt burden may lead to increased monetization strategies, such as microtransactions, potentially degrading the player experience [15]

Core Viewpoint - Electronic Arts (EA) is set to be acquired in a historic $55 billion all-cash deal, marking the largest leveraged buyout on record, with shareholders receiving $210 per share, aligning with Robert W. Baird's price target [2][6]. Group 1: Acquisition Details - The acquisition is led by Saudi Arabia's Public Investment Fund, Silver Lake, and Jared Kushner's Affinity Partners [2][4]. - The Public Investment Fund will become the majority investor, having already owned a 9.9% stake in EA [4]. Group 2: Market Reaction - Following the buyout announcement, EA's shares surged by 4.9%, with a prior increase of about 15% the previous Friday, boosting EA's market value from $43 billion to around $48 billion [3][6]. - EA's current stock price is $202.53, reflecting a 4.75% increase, with a market capitalization of approximately $50.67 billion [5][6]. Group 3: Analyst Insights - Robert W. Baird has set a price target of $210 for EA, indicating a potential increase of 3.59% from the current stock price [1][6].

Group 1 - The $55 billion take-private of Electronic Arts is the largest leveraged buyout ever, with JPMorgan Chase providing a record $20 billion in financing, marking the biggest debt pledge by a single bank for such a deal [1] - This transaction represents a significant victory for banks in the context of private credit's growth, which has reached $1.7 trillion [1] Group 2 - Ford CEO Jim Farley emphasized the importance of blue-collar industries for the U.S. high-tech manufacturing sector, warning that neglecting these industries could lead to failure [2] - Skilled trades are essential for constructing factories, data centers, and supply chains, yet they are currently facing labor shortages, insufficient training investment, and restrictive tariffs [2] - Farley has convened industry leaders to highlight the significance of this "essential economy" [2] Group 3 - Wall Street experienced mixed trading, with technology stocks recovering some losses while oil prices declined [3] - The S&P 500 increased by 0.1%, while the Dow Jones Industrial Average fell by 67 points, and the Nasdaq composite rose by 0.4% [3]

Core Insights - Electronic Arts has agreed to sell to a consortium of private investors, which includes Silver Lake Management, Saudi Arabia's Public Investment Fund, and Jared Kushner's Affinity Partners [1] - The deal values Electronic Arts at $55 billion, marking it as the largest leveraged buyout in history [1] Company Summary - The acquisition involves significant players in the investment sector, indicating strong interest in the gaming industry [1] - The involvement of high-profile investors suggests a strategic move to capitalize on the growth potential of Electronic Arts [1]