The CNBC app, global market news in one place. Customizable sections and personalized alerts. Stocks tracking, interactive charts, and market insights, all in your hands. Stay connected, stay informed. Download the CNBC app today. >> Very good morning to you and welcome to Squawkbox Europe. I'm Juliana Tatbomb with Carolyn Roth and these are your headlines this Monday morning. Investors gear up for the big headline risk event with a Christmas cut baked into the Federal Reserve's decision this week, setting ...

Core Viewpoint - The proposed $72 billion acquisition of Warner Bros by Netflix has sparked significant backlash within the media industry, raising concerns about market dominance and competition [1][3][5]. Group 1: Acquisition Details - Netflix, the world's largest streaming service, has agreed to acquire Warner Bros Discovery's TV, film studios, and HBO Max streaming division, with the deal expected to complete late next year [2]. - The acquisition is positioned as the largest media takeover in history, with implications for competition and market control [6]. Group 2: Industry Reactions - The Writers Guild of America has expressed strong opposition, arguing that the merger would violate antitrust laws, eliminate jobs, lower wages, and reduce content diversity [5]. - Republican Senator Roger Marshall has raised concerns about the implications for consumers and local businesses, emphasizing the need for regulatory scrutiny [6][7]. Group 3: Regulatory Considerations - President Trump has indicated he will be involved in the decision-making process regarding the deal, acknowledging potential problems related to market share and competition [1][11]. - The deal has attracted bipartisan criticism, highlighting the need for regulators to assess its impact on prices, choice, and creative freedom [6][7].

Core Viewpoint - Netflix is set to acquire Warner Bros. Discovery's film studio and streaming service HBO Max in a deal valued at $72 billion, which has garnered significant attention in the business and media sectors [1]. Group 1: Financial Implications - Netflix's stock dropped by 2.89% following the announcement of the acquisition, indicating investor concerns over the size and cost of the transaction [2]. - In contrast, Warner Bros. Discovery's stock rose by 6.3%, reflecting investor optimism regarding the financial benefits of the deal [2]. Group 2: Regulatory Considerations - The acquisition is not finalized and is subject to regulatory scrutiny, with U.S. President Donald Trump expressing skepticism about the deal [3]. - Despite initial resistance from the administration, there remains a possibility that the transaction could ultimately be approved [3].

We recently published December Disappointments: 10 Big Names Troubled Early. Paramount Skydance Corp. (NASDAQ:PSKY) is one of the worst performers of last week. Paramount saw its share prices fall by 16.5 percent week-on-week as investors unloaded portfolios after losing to Netflix in a billion-dollar bidding war to acquire Warner Bros Discovery Inc. A report by The Post last week said that Paramount Skydance Corp.’s (NASDAQ:PSKY) chief, David Ellison, sat down with officials from the White House on Wednes ...

Core Viewpoint - Netflix is set to acquire Warner Bros. Discovery's film studio and streaming service HBO Max in a deal valued at $72 billion, which has significant implications for both companies and the streaming industry as a whole [1]. Group 1: Netflix's Acquisition - The acquisition of HBO Max by Netflix is a major strategic move, valued at $72 billion, indicating Netflix's ambition to expand its content library and strengthen its market position [1]. - Investors reacted negatively to the deal, with Netflix shares dropping 2.89%, reflecting concerns over the financial implications of such a large transaction [2]. - The deal is not finalized and is subject to regulatory scrutiny, with potential involvement from the U.S. government, indicating that the acquisition may face challenges before completion [3]. Group 2: Market Reactions - While Netflix's stock fell, Warner Bros. Discovery's stock rose by 6.3%, suggesting that the market views the deal favorably for Warner Bros. Discovery, which stands to gain significantly from the transaction [2]. - Analysts have expressed concerns about the financial burden on Netflix, indicating that the acquisition could impact its financial performance in the short term [2]. Group 3: Regulatory Environment - The deal faces skepticism from the Trump administration, which has indicated it will scrutinize the transaction closely, highlighting the potential for regulatory hurdles [3]. - Despite initial resistance, there is speculation that the deal could still proceed, reflecting the unpredictable nature of regulatory decisions in the current political climate [3].

Core Viewpoint - President Donald Trump has raised potential antitrust concerns regarding Netflix Inc.'s planned acquisition of Warner Bros. Discovery Inc., suggesting that the combined market share may lead to regulatory issues [1][2]. Group 1: Acquisition Details - The proposed acquisition is valued at $72 billion, which would merge Netflix, the world's leading streaming service, with HBO Max, currently ranked fourth in the market [2]. - The deal has attracted attention from antitrust regulators due to the significant market share that the combined entity would hold [2]. Group 2: Regulatory Implications - Trump indicated that the acquisition will undergo a review process, and its outcome remains uncertain [2]. - He acknowledged having met with Netflix co-CEO Ted Sarandos recently and expressed positive remarks about the streaming company [2].

Core Viewpoint - Netflix is making a significant acquisition by agreeing to buy Warner Brothers Discovery Studios and its streaming unit for $82.7 billion, which could reshape the Hollywood landscape and enhance Netflix's content offerings [1][3]. Group 1: Acquisition Details - The acquisition is valued at $82.7 billion, with Netflix offering $27.75 per share for Warner Brothers Discovery [1]. - The deal aims to expand U.S. production, increase original content spending, and unlock billions in cost savings [3]. - The acquisition is expected to close in approximately 12 to 18 months, although regulatory concerns may delay this timeline [3][4]. Group 2: Regulatory and Antitrust Concerns - There are significant antitrust concerns regarding the acquisition, with bipartisan political figures expressing worries about competition and potential price increases for consumers [5][6]. - Concerns have been raised about job losses in Hollywood due to consolidation, as overlapping roles may be eliminated [6][7]. Group 3: Market Implications - The deal could have implications for the streaming market in Asia, which is already fragmented and faces cultural and linguistic diversity challenges [8]. - The acquisition may indicate that Netflix is seeking to buy growth rather than relying solely on organic growth, suggesting potential limitations in its current growth trajectory [8]. Group 4: Consumer Behavior - There is a growing trend of subscription fatigue among consumers, with many now subscribing to multiple streaming services, leading to a decline in Netflix's viewership [10][11].

Core Viewpoint - Netflix and Casey's General Stores are recommended as strong investment options that are likely to perform well even if AI stocks experience a significant decline, which could negatively impact the broader market [2]. Group 1: Netflix - Netflix is the world's largest video streaming service with over 300 million paid memberships globally, and it plans to expand into the video podcast space in early 2026 through a partnership with Spotify [6]. - The company announced a $72 billion acquisition of Warner Bros. Discovery's TV and film studios, including HBO and HBO Max, which is expected to close in 12 to 18 months pending approvals [7]. - Netflix's revenue increased by 17% to $11.51 billion in Q3, with EPS rising by 8.7% year over year, despite some earnings being affected by a dispute with Brazilian tax authorities [10]. - The company achieved its highest quarterly "view share" ever in the U.S. and U.K., and it projects a revenue growth of 17% and EPS growth of 28% for Q4 [11]. - Netflix's stock gained 70.7% during the Great Recession, while the S&P 500 fell by 35.6% during the same period, indicating its resilience in challenging economic times [8]. Group 2: Casey's General Stores - Casey's General Stores operates 2,895 locations across 19 states, making it the third-largest convenience store chain in the U.S. [14][15]. - The company offers a unique product mix, including gasoline, freshly prepared food, and its popular made-from-scratch pizza, ranking as the fifth-largest pizza chain in the U.S. [16]. - In fiscal Q1 of 2026, Casey's revenue increased by 11% to $4.57 billion, with net income surging by 20% year over year, translating to EPS growth of 20% [18]. - The stock pays a modest dividend yielding 0.4%, which can contribute positively to long-term returns [18]. - During the Great Recession, Casey's stock declined only 11.5%, showcasing its stability compared to the S&P 500's 35.6% drop [19].

Roy Price, the former head of Amazon Studios and the chief executive of the studio International Art Machine, on Saturday warned that the Netflix Inc. (NASDAQ:NFLX) and Warner Bros. Discovery Inc. (NASDAQ:WBD) deal could have dire consequences for Hollywood.Reshaping HollywoodIn an opinion piece for The New York Times, Price warned that the acquisition of Warner Bros. by Netflix could significantly alter Hollywood’s landscape. The deal might not end filmmaking but could centralize the industry around Netfli ...

Core Perspective - CNN's exclusion from Netflix's $82.7 billion acquisition of Warner Bros. Discovery may initially seem like a significant oversight, but it could ultimately benefit CNN by preserving its independence from a parent company that may compromise its journalistic integrity [2][3][6]. Group 1: CNN's Position and Future - CNN's chairman Mark Thompson indicated that the company will continue to pursue its strategy for a successful digital transition, with a budget for increased investment already set for 2026 [8]. - The network has experienced significant ownership changes over the past decade, moving from Time Warner to AT&T, then to WarnerMedia, and finally to Warner Bros. Discovery [9][10]. - CNN's current situation may allow it to avoid the complications associated with being owned by a company like Netflix, which has a history of local censorship that could conflict with CNN's journalistic mission [5][6]. Group 2: Potential Future Acquisitions - Paramount's interest in acquiring CNN could present a new opportunity, as the company reportedly sought to buy all of Warner Bros. Discovery, unlike Netflix, which focused only on streaming and film [12]. - A merger between CBS News and CNN could create a powerful news operation, with fewer regulatory hurdles compared to previous years [15]. - The absence of a Netflix acquisition may make CNN a more attractive target for potential buyers, as it could be seen as a strategic bargain in the current market [13].