Core Insights - The potential acquisition of Warner Bros. by Netflix is facing significant challenges, including a competing bid from Paramount Skydance and potential antitrust scrutiny from influential figures, including President Donald Trump [2][3][6]. Deal Dynamics - Netflix's acquisition of Warner Bros. is valued at $83 billion, involving both cash and stock, and includes substantial breakup fees of $2.8 billion if Warner Bros. withdraws and $5.8 billion if the deal fails due to regulatory issues [4][5]. - Paramount Skydance has initiated a hostile takeover attempt, offering $30 per share, which is higher than Netflix's $27.75 per share offer, but the valuation of Warner Bros.' assets differs significantly between the two bids [5][6]. Market Reactions - Following the announcement of the acquisition plans, stock prices for Warner Bros. increased by approximately 3% to near $29, while Paramount's shares rose over 8%. In contrast, Netflix's stock declined by more than 4% [8].

Core Viewpoint - Paramount Skydance, backed by David and Larry Ellison, is positioning itself to potentially disrupt Warner Bros. Discovery's (WBD) merger with Netflix, following Netflix's $72 billion bid for WBD's assets [1][2]. Bid Dynamics - WBD CEO David Zaslav anticipates that the Ellisons may increase their bid to cover the $2.8 billion breakup fee WBD would incur if it withdraws from the Netflix deal [2][17]. - The Ellisons have made a $30 per share all-cash offer, which they argue is superior to Netflix's cash-and-stock offer of $30.75 per share, citing drawbacks for WBD shareholders in the latter [4][6]. Market Position and Strategy - The Ellisons' bid of $30 per share totals approximately $78 billion, which they believe is more attractive than Netflix's offer, especially considering Netflix's reliance on stock and uncertain valuations of WBD's cable properties [6][7]. - The Ellisons are also emphasizing "regulatory certainty," suggesting that their bid may face less scrutiny compared to Netflix's, which could be viewed as creating a monopolistic entity in the streaming market [11][12]. Regulatory Considerations - The potential merger between Netflix and WBD could create a streaming powerhouse controlling about 30% of the market, raising antitrust concerns among regulators [12][14]. - Zaslav believes that the Netflix deal will eventually receive regulatory approval, despite concerns raised by the Trump administration regarding Netflix's market power [13][15]. Financial Implications - Netflix has agreed to a $5.8 billion breakup fee if it withdraws from the deal, which is significantly higher than WBD's potential fee [15]. - The decline in Netflix's share price could affect the financial structure of its offer, potentially requiring it to allocate more funds to meet the agreed terms [16].

In the space of less than a week, the bidding war for Warner Bros. Discovery Inc. has unleashed two multi-billion debt deals that rank among the largest in the past decade.The latest came from Paramount Skydance Corp. as it lined up as much as $54 billion of financing from Wall Street’s biggest firms to help support its $108 billion hostile bid for Warner Bros., just days after the company agreed to a deal with Netflix Inc.Loans of this size have been few and far between over the past couple of years amid s ...

Group 1 - Netflix is making a significant $72 billion acquisition of Warner Bros Discovery, raising questions about its industry power and the implications for competitors [1] - Paramount Skydance Corp has countered with a hostile bid valued at $108.4 billion, or $30 per share, which is $18 billion more than Netflix's offer [2] - The stock of PSKY has increased by 8% to $14.44, recovering from previous losses amid the competitive bidding situation [2] Group 2 - There has been a surge in options trading for PSKY, with 34,000 calls traded, which is three times the average, indicating heightened investor interest [3] - The February 17 call option is the most popular, suggesting that new positions are being established [3] - Currently, 23 out of 24 brokerages have rated PSKY as a "hold" or worse, indicating a potential for upgrades if bearish sentiment shifts [3] Group 3 - PSKY is on the short sale restricted list, with short interest increasing by 13.8%, representing 5.2% of the stock's available float [4] - There are 53.46 million shares sold short, indicating that it would take over six days for short sellers to cover their positions [4]

Welcome to Market Catalysts. I'm Julie Hyman. Here is what we're watching today.First up, IBM will buy Confluent for $9.3% billion. We'll be speaking with the CEO of Confluent to discuss. Plus, the bidding war for Warner Brothers heats up as Paramount makes a hostile bid for the company.and we'll count down to the December FOMC meeting as the Federal Reserve prepares to issue a rate decision. Let's take a look at the major averages. It is already a busy week.It's going to be a busier week as we get that dec ...

back here is look, we're sitting on Wall Street where cash is still king. We are offering shareholders $17.6% billion more cash than the deal they currently have signed up with Netflix. And we believe when they see what is currently in our offer that that's what they'll vote for.>> Were you told during the process that cash is king. >> Yes, absolutely. Well, we were told repeatedly was that they wanted all cash. We delivered all cash.Uh we were we were asked that they wanted it to be fully backs stopped by ...

Core Viewpoint - Netflix stock has shown significant growth, more than doubling in value over the past five years, despite challenges in the 2022 bear market [1] Group 1: Company Performance - Netflix currently has over 300 million subscribers, solidifying its dominance in the streaming industry [2] - The stock is trading at a forward price-to-earnings multiple of 31 based on next year's consensus earnings estimate, with projected earnings per share growth of 24% annually over the next several years [4] - The company has substantial untapped growth opportunities, capturing only 10% of TV viewing time in its largest market, indicating potential for increased engagement and revenue growth [5] Group 2: Strategic Moves - Netflix is pursuing the acquisition of Warner Bros. Discovery for a total enterprise value of $83 billion, which is expected to enhance its content library significantly [2][8] - The acquisition will include popular franchises such as The Wizard of Oz, Harry Potter, and Game of Thrones, positioning Netflix for even greater success in the entertainment industry [5] Group 3: Investment Outlook - Analysts believe that if Netflix meets its earnings growth expectations, the stock could potentially double within three years [4] - Investors who hold Netflix stock for the next five years are expected to see market-beating returns due to the stock's attractive valuation relative to its growth potential [6]

Core Viewpoint - Netflix has made a historic move by acquiring Warner Bros.' business unit for $82.7 billion, marking a significant shift in its strategy from building original content to acquiring established franchises and studio infrastructure [3][4][5][16] Group 1: Acquisition Details - The acquisition includes iconic franchises such as Harry Potter, Game of Thrones, and the DC Universe, along with the HBO brand and HBO Max streaming service [1][4] - The total enterprise value of the deal is approximately $82.7 billion, which combines Netflix's large subscriber base with Warner Bros.' prestigious content library [3][4] - Netflix will pay $27.75 per share for Warner Bros. Discovery stock, consisting of $23.25 in cash and $4.50 in Netflix stock, with a total equity value of $72 billion [7] Group 2: Strategic Implications - The deal is expected to generate significant cost savings and become accretive to earnings per share within the second full year [4][12] - Netflix's acquisition strategy allows it to avoid declining linear assets by requiring Warner Bros. Discovery to spin off its Global Networks business, thus focusing on high-growth studio and streaming assets [8][9] - This acquisition solidifies Netflix's position as a leader in the entertainment sector, creating a portfolio depth that competitors like Amazon and Disney will struggle to replicate [15][16] Group 3: Financial Considerations - To fund the acquisition, Netflix will utilize $10.3 billion in cash and take on $50 billion in new acquisition debt, raising concerns about its balance sheet [10][11] - Despite the debt load, Netflix forecasts approximately $9 billion in free cash flow for 2025 and aims for $2 billion to $3 billion in annual run-rate cost savings by the third year post-acquisition [12][13] - The deal is projected to be accretive to GAAP earnings per share by the second full year, indicating potential for profit growth rather than dilution [13] Group 4: Market Reaction - Following the announcement, Netflix shares fell approximately 2.9%, reflecting market skepticism regarding the balance sheet impact [10][14] - Conversely, shares of Warner Bros. Discovery rose over 6%, indicating investor confidence that the deal will proceed [14]

Netflix (NFLX) stock performed terrifically well in 2024. Its solid content, subscriber growth, and push into advertising boosted its top- and bottom-line growth, supporting its share price and strengthening its competitive positioning in the streaming space. So far in 2025, the company’s operating momentum has remained solid. Viewers continue to engage with its expanding catalog, and the ad-supported tier is gaining traction. But despite its solid fundamentals, the stock hasn’t kept pace with the broader ...

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 ...