Netflix, Inc. (NFLX) is caught in the middle of an escalating bidding war for Warner Bros. Discovery that's creating volatility for the streaming giant's shares and new trading opportunities in leveraged ETFs tied to the stock. The drama escalated Monday when Paramount Skydance launched a $30-per-share hostile offer for Warner Bros. Discovery, attempting to derail Netflix's $72 billion agreement to acquire WBD's film studio and HBO Max streaming assets, according to CNBC. The competing bids have injected fr ...

Donald Trump said he wants a new owner for CNN as part of any sale of its parent Warner Bros. Discovery – a signal that he prefers an offer by Paramount Skydance to purchase the media conglomerate versus last week’s winning bid from Netflix.Streaming giant Netflix has agreed to buy WBD’s Warner Bros. studio and its HBO Max streaming service, leaving CNN’s current management intact. But Paramount Skydance wants to buy all of WBD including CNN – and put the latter under the news chief of its CBS subsidiary, B ...

Market Overview - US stock futures declined after Oracle's earnings raised concerns about AI overspending, impacting the Wall Street rally following the Federal Reserve's interest-rate cut [1][2] - S&P 500 and Nasdaq 100 futures fell approximately 0.5% and 0.8%, respectively, while Dow Jones Industrial Average futures decreased by 0.1% [1] Oracle's Earnings Impact - Oracle's after-hours earnings report reignited fears regarding AI spending, leading to a significant drop in its stock by over 10% [2] - The company missed expectations for cloud sales and increased its data center spending by $15 billion, raising concerns about tech valuations and the sustainability of AI investments [2][9] Federal Reserve's Actions - The broader market had previously risen after the Federal Reserve voted to lower rates for the third time this year, bringing the federal funds target range to 3.5%–3.75% [3] - Fed Chair Jerome Powell indicated a cautious approach moving forward, suggesting that a rate hike is unlikely for January [3][4] Investor Sentiment - The abrupt shift in market sentiment following Oracle's earnings highlights ongoing concerns about an AI bubble, despite a temporary increase in risk appetite due to the Fed's easing [10] - The MSCI All Country World Index was close to its peak before Oracle's stock plunge, which also affected gold prices and Treasury yields [8][9] Novo Nordisk's Performance - Novo Nordisk's shares have dropped over 50% in 2025, reflecting a significant decline from the previous year's weight-loss drug frenzy [11][12] - The company faces challenges due to disappointing clinical trial results and increased competition in the obesity-drug market, raising concerns about future sales growth [12][13]

It's one of these situations where there is the Wall Street view on this deal. The structure of the deal. And then there is the.What does this mean for Hollywood. And the reason I'm so excited to have you on the program is I think we could probably talk about both. But this is the first opportunity I've had to talk to you about two competing bids.I set the stage for it on Netflix, is offer cash and stock and Paramount's offer. What is your position at this time and what is your research into the competing b ...

Core Viewpoint - The ongoing auction for Warner Brothers Discovery has generated significant interest, with competing bids from Netflix and Paramount, leading to a substantial increase in the asset's value from $12 to $30 per share, representing a 300% premium over previous trading levels [2][6]. Group 1: Auction Dynamics - David Zaslav and the Warner Brothers team are credited for effectively creating an auction environment for the asset valued at $12, which has now reached $30 per share due to competitive bids [2][3]. - Both Paramount and Netflix have indicated their willingness to increase their bids, reflecting the high stakes involved in acquiring Warner Brothers [2]. Group 2: Competitive Landscape - The Hollywood community is more concerned about a potential Netflix acquisition of Warner Brothers, viewing it as anti-competitive, especially given Netflix's stance against traditional theatrical release windows [4][10]. - Paramount's bid is perceived as more favorable due to its regulatory viability compared to Netflix, which faces skepticism from Hollywood talent regarding its competitive practices [3][4]. Group 3: Market Share and Subscriber Base - In the streaming market, Netflix boasts over 300 million global subscribers, while HBO Max has 150 million, leading to a combined market share of approximately 450 million subscribers, or 40% of the streaming market [8][9]. - In contrast, Paramount (Sky) has 75 million subscribers, which, when combined with HBO Max, results in a smaller total of 225 million subscribers, indicating a less dominant market position compared to a Netflix-Warner Brothers merger [9]. Group 4: Content Creation and Pricing Implications - The merger of Netflix and Warner Brothers would likely dampen competition for talent, potentially leading to higher prices for consumers, as both entities are major content creators with different distribution strategies [10][12]. - The argument that a merger would simplify consumer choices is countered by concerns that it would ultimately lead to increased prices, which contradicts consumer welfare principles [12][13].

asbe/iStock via Getty Images Listen below or on the go on Apple Podcasts and Spotify This is an abridged transcript of the podcast: As widely expected, the Federal Open Market Committee reduced its benchmark interest rate by 25 basis points on Wednesday, its third straight cut, as the Federal Reserve's monetary policy arm sought to balance its dual mandate of full employment and price stability. It appeared to see the risk to employment as the more pressing issue. The policy easing brought the federa ...

Core Viewpoint - Netflix is planning to borrow heavily again to finance a $72 billion acquisition of Warner Bros. Discovery Inc., despite having a stronger balance sheet than before the pandemic [2][3]. Group 1: Acquisition Financing - The acquisition plan includes $59 billion of temporary debt financing from Wall Street banks, which Netflix intends to replace with $25 billion of bonds, $20 billion of delayed-draw term loans, and a $5 billion revolving credit facility [4]. - Netflix's debt load may increase further due to a competing hostile takeover bid for Warner Bros. from Paramount Skydance Corp., which values the company at over $108 billion, approximately $26 billion more than Netflix's offer [5]. Group 2: Credit Profile and Risks - Analysts note that Netflix's credit profile has improved significantly, moving away from its previous "high yield" status, with a current rating of A from S&P Global Ratings and A3 from Moody's [3][6]. - Rising debt levels pose a risk for investors, with potential for Netflix to be downgraded to the BBB tier, prompting recommendations to sell its notes due in 2034 and 2054 [6]. - The acquisition faces regulatory scrutiny, which could result in a $5.8 billion breakup fee if the deal is blocked [7]. Group 3: Market Sentiment - Despite the risks, many analysts and investors consider the situation manageable, as risk premiums on Netflix's debt have remained stable [8]. - Moody's has affirmed Netflix's A3 rating, citing strong operating performance and the potential benefits from acquiring valuable intellectual properties like Harry Potter and HBO, while adjusting the outlook to "stable" from "positive" [8].

Core Viewpoint - Netflix's potential $72 billion acquisition of Warner Bros. Discovery's studio and streaming assets is facing criticism from analysts who highlight risks associated with generative AI disruption in content creation [1][5]. Group 1: Acquisition Details - The deal combines Netflix's 300 million global subscribers with HBO Max's 128 million customers, resulting in a streaming entity that controls approximately 43% of the global subscription video market [3]. - Netflix will pay $23.25 in cash and $4.50 in stock for each Warner Bros. Discovery share, valuing the transaction at $27.75 per share [3][4]. Group 2: Analyst Perspectives - Needham analyst Laura Martin warns that Netflix risks $83 billion in additional value by acquiring Warner Bros.' traditional studio operations amid the threat of AI in content creation [1]. - Martin maintains a "Buy" rating and a $150 price target on Netflix but suggests the company would be better off without the legacy burdens of Warner Bros.' studio business [5]. Group 3: Market Reactions - Netflix's stock has declined nearly 10% over the last five trading sessions as investors consider regulatory and competitive implications of the acquisition [6]. - The deal is under scrutiny from antitrust regulators due to the combined market share, and Paramount has made a $30-per-share all-cash counteroffer to Warner Bros. shareholders [6]. Group 4: Future Plans - Netflix plans to spend around $30 billion annually on content post-merger, positioning itself as the largest entertainment spender globally [8].

Joining us now is one of those shareholders, Oakmark partner and portfolio manager, Alex Fitch. Oakmark is the fourth largest shareholder in Warner Brothers Discovery after Vanguard, State Street, and BlackRock. It's good to have you, Alex.So, which way are you leaning as far as ownership for Warner, Paramount or Netflix. >> Well, I'm not sure it's actually ever going to come to that point where we're voting on these two specific deals. Uh, I strongly suspect this bidding war is not over yet.Uh if you think ...

Core Viewpoint - Netflix's acquisition of Warner Bros. Discovery's assets represents a significant shift in the streaming and media industries, with a total enterprise value of nearly $83 billion, including $11 billion of net debt at Warner Bros. [4][5] Financial Investment - Netflix plans to utilize $10.3 billion of its cash reserves for the acquisition and intends to raise an additional $59 billion in debt instruments, although it will only use $50 billion for the deal [2][4] - At the end of the third quarter, Netflix had approximately $9.3 billion in cash and equivalents, along with $3.6 billion in other current assets [2] Comparison with Other Acquisitions - The deal is larger than Disney's $71 billion acquisition of 21st Century Fox and Disney's $27.5 billion purchase of Hulu, highlighting its significance in the industry [3][4] Regulatory Challenges - The acquisition faces potential regulatory scrutiny and antitrust concerns, with competing offers emerging, such as Paramount Skydance's hostile bid of $30 per share [6][7][8] - Netflix management is optimistic about obtaining regulatory approval within 12 to 18 months [8][9] Valuable Assets - The acquisition includes valuable franchises such as Game of Thrones, the DC superhero universe, and Harry Potter, which can generate significant revenue through various channels [10][11] - The deal is expected to be accretive to earnings by the second full year post-acquisition, with anticipated cost synergies of $2 billion to $3 billion by year three [13] Consumer Benefits - The consolidation may lead to better pricing for consumers, as a bundled Netflix and HBO Max subscription could be cheaper than purchasing both separately [16][17] - The combination of Netflix's technology and HBO's content is expected to enhance user experience and content delivery [17][18]