Exclusive: Netflix has ample room to increase its offer in battle for Warner Bros, sources say | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A drone view shows the Netflix logo on one of the company's buildings in the Hollywood neighborhood in Los Angeles, California, U.S., January 20, 2026. REUTERS/Daniel Cole/File Photo [Purchase Licensing Rights, opens new tab]Feb 19 (Reuters) - Netflix [(NFLX.O), opens new tab] has ample cash ...

Core Viewpoint - Netflix's proposed acquisition of Warner Bros Discovery for $82.7 billion is under scrutiny in a U.S. Senate hearing, focusing on its potential impact on the industry [1] Group 1 - The acquisition is valued at $82.7 billion, indicating Netflix's aggressive expansion strategy in the media sector [1] - Ted Sarandos, Co-CEO of Netflix, is expected to address concerns regarding the implications of this merger on competition and consumer choice in the streaming market [1] - The hearing reflects increasing regulatory scrutiny over large media mergers, highlighting the evolving landscape of the entertainment industry [1]

Leadership Transition - Darren Walker has been appointed as the president and CEO of Anonymous Content, marking a significant leadership change for the company [1] - Walker will oversee all divisions of the organization from offices in Los Angeles and New York [1] Company Vision and Strategy - Walker emphasized the company's commitment to independence and artistic ambition, which he believes is crucial in the rapidly changing media landscape [2] - He stated that the company's autonomy positions it uniquely to shape culture for decades to come [2] - Walker will guide all aspects of operations, collaborating with existing leadership across various sectors including film, television, and international business lines [2] Investment and Growth - Emerson Collective is making a significant investment in Anonymous Content to support its continued expansion [2] - The board expressed confidence in the company's direction and the strength of its team, highlighting the importance of creative independence [3] Walker's Background and Experience - Walker has decades of experience in the philanthropic and cultural sectors, previously serving as president of the Ford Foundation [3] - At Ford, he managed a $17 billion endowment and oversaw operations in 10 regions with around 500 employees [3] - He is recognized for combining cultural leadership with financial discipline, including launching a $1 billion social bond to support nonprofits during the COVID-19 pandemic [4] Initiatives and Partnerships - Walker founded the JustFilms initiative, a documentary-focused film fund, and collaborated with organizations like the Sundance Institute Directors Lab and the Tribeca Film Institute to support emerging filmmakers [5]

Core Viewpoint - Netflix is pursuing an all-cash bid of $83 billion for Warner Bros. Discovery (WBD), aiming to solidify its position in the streaming market despite facing significant market value losses of nearly $170 billion during the bidding process [1][2][4]. Group 1: Bid Details - Netflix's all-cash offer for WBD includes acquiring its Warner Studios and HBO Max streaming service, positioning it favorably against competitors like Paramount Skydance (PSKY) [2][3]. - The previous cash-stock bid included $60 billion in debt, with plans to issue $50 billion in new bonds and loans, and assume $10 billion from WBD, indicating a substantial increase in debt as part of the acquisition [7][11]. - The success of the bid hinges on the sale of WBD's cable properties, which are expected to generate at least $3 per share, although this may not significantly reduce the leverage from the cable spinoff [9][10]. Group 2: Market Reaction and Shareholder Sentiment - Following the earnings announcement, Netflix shares fell despite beating expectations, reflecting investor concerns over the perceived overvaluation of the acquisition [4][19]. - There is speculation that Netflix may need to adjust its deal further to secure a more favorable position against PSKY's $30-per-share all-cash bid [10][15]. - WBD's CEO, David Zaslav, has expressed support for the Netflix deal, which may influence the bidding dynamics, especially if PSKY is pressured to increase its offer [14][17].

Core Insights - Auri Inc. is actively restructuring and expanding its subsidiary companies, focusing on new business operations and assets [1][5] - The company has entered agreements with new manufacturing partners for nutraceutical and cannabis-related products, aiming to streamline operations and enhance product offerings [2][3] - Auri is leveraging its relationships with high-profile celebrities to promote its products and is expanding its product lines, including new beverages and pain management solutions [3][5] Business Operations - Auri has arranged additional manufacturing sources for its nutraceutical and cannabis-related products, moving these operations to SUTI to focus on core business areas [2] - The company is enhancing its product lines, including drinks, cocktails, and CBD alternatives, while also expanding its gummy and edible offerings [3] - Auri's management believes that the transition of The Champ line to SUTI will facilitate the launch of new celebrity-endorsed products [4] Financial Strategy - Auri has been growing through internal capital investments in its subsidiaries, including Black Dragon Resources, PBS Holding, and SutimCo International [5] - The company is focused on mergers and acquisitions to enhance its portfolio and generate revenue, with a goal of issuing stock and cash dividends to shareholders [5] - Recent strategic alliances and business ventures are expected to significantly increase asset value and revenue for the company [5] Subsidiary Developments - In 2025, Black Dragon Resources formed an acquisition subsidiary to purchase a logistics and trucking company, enhancing its oil and gas operations [6] - PBS Holding is advancing initiatives to increase revenue from collectible merchandise sales through its Starfest Direct Network [6] - Auri's joint venture, Melody Production, is expected to contribute additional revenue through enhanced audio and video production services [7] Company Overview - Auri Inc. is a publicly traded holding company involved in the development and investment in various sectors, including gold, rare earth minerals, media, and real estate [8][9] - The company is managed by experienced executives with expertise in entertainment, media production, and investment strategies [9]

Group 1 - LA Times Studios, part of the Los Angeles Times Media Group, is collaborating with Monks, a digital-first brand of S4 Capital plc, to host a networking lounge at CES 2026 [1] - The event will take place on January 7-8, 2026, in Las Vegas, specifically in the CES Foundry area at the Fontainebleau Las Vegas [1] - The lounge aims to provide a dedicated space for industry leaders and visionaries to connect and engage [1]

Group 1 - Warner Bros. Discovery (WBD) is considering offers from Netflix and Paramount for its studio and streaming business, with WBD's board favoring Netflix's proposal [2][6] - Wall Street banks are set to earn a total of $225 million from the sale process, with specific amounts allocated to Allen & Co., J.P. Morgan, and Evercore [1][7] - Investment banks are experiencing a surge in media and telecom mergers, with a reported 61% increase in deal value from the second half of 2024 to the second half of 2025, excluding the WBD sale [5][8] Group 2 - WBD has engaged multiple advisors throughout the bidding process, including Innisfree for shareholder communications and Joelle Frank for public relations [3] - The financial advisory firms involved in the bidding include Moelis & Co. for Netflix and Centerview Partners, RedBird, BofA, Citi, and M. Klein & Company for Paramount [4][3] - PwC anticipates continued robust M&A activity in the coming years, driven by investor interest in content libraries, video games, and sports assets [8]

Core Insights - The long drama market is expected to face a "bleak" end in 2025, with significant changes in industry dynamics anticipated due to a challenging environment [1] Group 1: Industry Trends - The traditional "Big Six" production companies are experiencing a decline in both output and market share, with Huace Film and TV significantly reducing its new releases from seven to three this year [2] - New releases from New Classics Media have also decreased, with only one major drama expected in 2025 compared to multiple successful titles last year [3] - The overall production capacity of companies like Noon Sunshine and Ningmeng Media has remained stable, but their new releases have not matched the success of previous years [5] Group 2: Emerging Players - New players in the industry are fiercely competing, with companies like Changxin Media and Jiaxing Media gaining attention through successful new releases [14][16] - Quantum Pan Entertainment and Chunyu Media's collaboration on "Cang Hai Chuan" has emerged as a leading title in the male-oriented drama category, showcasing the potential of new entrants [21] - Other emerging companies like Xixi Film and Xinglian Film have also produced new works, indicating a slight recovery in their performance compared to last year [23] Group 3: Performance Metrics - The performance of dramas has varied significantly, with some productions achieving high ratings while others struggle to gain traction, reflecting the competitive nature of the market [9][11] - The drama "Xu Wo Yao Yan" from Jinhe Media has achieved notable success, marking a significant comeback for the company after a period of fewer hits [18] - The overall sentiment in the industry suggests that even successful productions are facing challenges in achieving blockbuster status, indicating a tough market environment [30]

Core Viewpoint - Paramount Skydance is making a hostile bid to acquire Warner Bros. Discovery after losing a bidding war to Netflix for legacy assets [1][4]. Group 1: Bid Details - Paramount is offering an all-cash bid of $30 per share to WBD shareholders, which was previously rejected by WBD [2]. - The bid is supported by equity financing from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi, and Apollo Global Management [2]. Group 2: Market Reactions - Shares of Paramount increased by approximately 3% in premarket trading, while shares of Warner Bros. Discovery rose about 5% [3]. Group 3: Competitive Landscape - Netflix announced a deal to acquire WBD's studio and streaming assets for $72 billion, which has raised antitrust concerns due to the potential combination of two dominant streaming platforms [4][6]. - Comcast has also shown interest in bidding for WBD's streaming and studio businesses [4]. Group 4: Regulatory Considerations - Paramount executives believe their deal will face a shorter regulatory approval process due to the company's smaller size and favorable relationship with the Trump administration [5].

Group 1: Barrick Gold - A judge in Mali ordered Barrick's Loulo-Gounkoto gold complex to be placed under provisional administration for six months, but a deal announced will drop all charges against the company and its employees [1] - The provisional administration of the Loulo-Gounkoto complex will be terminated, and operational control will be returned to Barrick [1] - Barrick's subsidiaries will withdraw arbitration claims pending before the International Centre for Settlement of Investment Disputes [2] Group 2: Alimentation Couche-Tard - Alimentation Couche-Tard reported net earnings of US$740.6 million in Q2, an increase from US$708.8 million year-over-year, translating to 79 cents per share, up from 75 cents [4][6] - The company's revenue for the period was US$17.9 billion, a 2.6% increase from US$17.4 billion in the previous year [5][6] - Total merchandise and service revenues reached US$4.7 billion, rising 6.6% year-over-year, with same-store sales growth reported across all geographies for the second consecutive quarter [5] Group 3: Blue Ant Media Group - Blue Ant Media Corp. signed a stock-and-cash agreement to acquire Thunderbird Entertainment Group for $89 million, aimed at enhancing its studio business and cash flow [7] - Thunderbird shareholders can choose to receive either 0.2165 of a Blue Ant subordinate voting share, $1.77 in cash, or a combination for each share held, with a maximum cash limit of $40 million [8] Group 4: National Storage REIT - Brookfield and GIC made a takeover offer for National Storage REIT valued at approximately A$4 billion (around C$3.7 billion) [10] - National Storage has about 94,500 customers across over 270 storage centers in Australia and New Zealand, with the offer providing A$2.86 cash per stapled security [11] - The offer includes a potential dividend of six Australian cents, which would reduce the cash payable per stapled security by the same amount [12]