make it a fab report. That means I get to talk for a little while. Let's see.Um, I wanted to update people because we've been following this obviously uh potential uh deal for quite some time and there's been a lot of other reporting around it. Let me at least share what I what I'm aware of at at the present moment. And the main part of which is these two companies are talking.They've been talking uh for weeks uh about a deal in which Paramount would buy Warner Brothers Discovery for um uh for a largely cas ...

Core Insights - Paramount Skydance Corporation has appointed Makan Delrahim as Chief Legal Officer, effective October 6, 2025, to oversee legal, regulatory, compliance, and public policy matters [1][2][3] Group 1: Appointment and Role - Makan Delrahim will manage Paramount's Government Relations team and bring extensive experience from his previous role as Assistant Attorney General overseeing the U.S. Department of Justice's Antitrust Division [1][2][3] - Delrahim's background includes advising on high-profile transactions and complex litigation at Latham & Watkins LLP, where he provided legal counsel during the M&A process leading to Paramount's acquisition [2][4] Group 2: Leadership Perspective - David Ellison, Chairman and CEO of Paramount, expressed enthusiasm for Delrahim's appointment, highlighting his strategic mindset and experience in navigating complex challenges as vital for Paramount's future [3] - Delrahim emphasized the dynamic nature of the media industry and his commitment to contributing to Paramount's leadership team during this transformative period [3] Group 3: Delrahim's Background - Delrahim has a distinguished career in antitrust law, having overseen numerous mergers and acquisitions and led initiatives for international antitrust cooperation during his tenure at the DOJ [5][6] - His previous roles include senior positions in various governmental agencies, showcasing his extensive experience in law and policy [6][7] Group 4: Company Overview - Paramount, a Skydance Corporation, is a leading global media and entertainment company with segments in Filmed Entertainment, Direct-to-Consumer, and TV Media, housing renowned brands such as Paramount Pictures and CBS [8]

Company Overview - Paramount Skydance Corporation (PSKY) has a market cap of $12.9 billion and operates in film, television, streaming, and interactive content [1] - The company is classified as a "large-cap" stock, with notable brands including Paramount Pictures, CBS, Nickelodeon, MTV, BET, Comedy Central, Showtime, Pluto TV, and Paramount+ [2] Stock Performance - PSKY shares have decreased over 9% from their 52-week high of $20.86, but have increased by 55.3% over the past three months, outperforming the S&P 500 Index's 8.2% gain [3] - Year-to-date, PSKY stock is up 81.5%, significantly surpassing the S&P 500's 12.1% rise, and has risen 79.9% over the past 52 weeks compared to the S&P 500's 15.2% return [4] Financial Results - Following Q2 2025 results on July 31, PSKY shares rose 3.5% as adjusted EPS of $0.46 exceeded consensus estimates [5] - Direct-to-Consumer (DTC) revenues increased by 14.9% to $2.16 billion, with subscription revenues up 21.8% and Paramount+ reaching 77.7 million subscribers, alongside a 9% growth in ARPU [5] - DTC adjusted OIBDA improved by $131 million, supported by strong theatrical performance from "Mission: Impossible – The Final Reckoning," which grossed over $590 million globally, and SG&A cost savings of 11.3% [5] Merger Activity - On August 7, Skydance Media and Paramount Global completed their merger to form Paramount, a Skydance Corporation (PSKY), combining Paramount's legacy content and distribution with Skydance's production and technology expertise [6]

Core Insights - The Federal Reserve's recent 25bps rate cut and potential fiscal easing are expected to stimulate M&A activity, particularly in the TMT sector, which has shown resilience with a 33% increase in deal value to $146 billion [1] - Intellectual property (IP) is becoming a central asset in TMT M&A, influencing valuations and strategic directions, as companies seek to acquire content libraries and franchises to enhance user engagement and competitive positioning [2] M&A Activity Highlights - Microsoft's acquisition of Activision Blizzard for $68.7 billion in 2023 is the largest gaming deal in history, allowing Microsoft to control significant IPs and become the third-largest gaming platform by revenue [3][4] - The deal was justified by the recurring monetization potential from subscriptions and in-game purchases, supported by Activision's 400 million monthly active users [4] - Skydance Media's merger with Paramount Global for $28 billion aims to create a media and technology leader, leveraging Paramount's extensive IP and streaming platforms to enhance distribution and production capabilities [6][7] Strategic Importance of IP - The integration of Activision's library into Microsoft's Game Pass and Xbox Cloud Gaming has proven beneficial, with gaming revenue reaching $2 billion and Xbox content growing by 16% [5] - Paramount's acquisition of UFC for $7.7 billion is positioned as a strategic move to enhance its sports IP portfolio, transitioning UFC events from pay-per-view to subscription models, thereby increasing engagement and retention [9][10] - The valuation of IP in these transactions reflects a shift towards viewing IP as a recurring, ecosystem-driven asset rather than just a one-time revenue generator [16][20] Future Outlook - The long-term growth potential of the media industry remains strong, driven by increasing consumption and the central role of IP across various entertainment formats [22] - Companies must be cautious in their M&A strategies, ensuring they have the scale and platforms to fully leverage acquired IP, as today's high premiums could lead to future valuation challenges [23]

Core Viewpoint - Paramount Skydance is preparing a significant bid for Warner Bros. Discovery, potentially valuing the company at up to $24 per share, with a proposed deal structure of 70% to 80% cash and the remainder in stock [1][3][4]. Group 1: Bid Details - The bid is expected to be in the range of $22 to $24 per share, significantly above Warner Bros. Discovery's current trading price of around $19 [1][4]. - The backing for the bid includes major cash support from Oracle co-founder Larry Ellison, who is the father of Paramount Skydance CEO David Ellison [1][9]. - Warner Bros. Discovery's stock saw a nearly 30% surge following the news of the planned bid, indicating strong market interest [5][11]. Group 2: Strategic Implications - Warner Bros. Discovery CEO David Zaslav is reportedly seeking a bidding war to increase the company's valuation, aiming for a price target of $40 per share [4][5]. - The company has been burdened with debt since its 2022 merger and is struggling to compete with major streaming services like Netflix [12]. - The potential merger would create a powerful entity in the media landscape, combining assets such as HBO, CNN, and Warner Bros. Pictures with Paramount's existing portfolio [10][11]. Group 3: Market Context - The bid reflects the increasing pressure on legacy media firms as traditional cable subscriptions decline and streaming growth slows [11]. - Warner Bros. Discovery is considering splitting its operations into two publicly traded entities if its valuation expectations are not met [5][10]. - The proposed merger would require approval from regulatory bodies, including the Federal Communications Commission and the Department of Justice, with anticipated antitrust scrutiny [14].

Core Viewpoint - The importance of technology finance has been increasingly highlighted since the Central Financial Work Conference proposed the "five major articles" of finance, with the Beijing Branch of China Merchants Bank actively responding to the high-quality development requirements of technology finance through the "Starry Sky" action plan [1] Group 1: Technology Finance Development - The Beijing Beiyuan Road Technology Finance Branch of China Merchants Bank has established a comprehensive service system for innovative enterprises, significantly aiding the growth of national-level specialized and innovative "little giant" enterprises [1] - The "Starry Sky" action plan categorizes over 40,000 technology enterprises in Beijing into five tiers, providing targeted financial services at different growth stages [2] - The plan includes five standardized financing products designed to support technology enterprises at various stages of development [2] Group 2: Customized Financial Solutions - The Beiyuan Road Technology Finance Branch offers customized services through a "one enterprise, one policy" approach, helping enterprises achieve significant growth from technological breakthroughs to global expansion [3] - A specialized loan of 100 million yuan was successfully matched for H Company, a specialized and innovative "little giant" in the medical device sector, to support its rapid development [4] - YH Company, a unicorn in the commercial aerospace sector, received long-term credit support from the branch, establishing a benchmark case for financial support for startups in this field [5][6] Group 3: Ecosystem Building - The Beiyuan Road Technology Finance Branch collaborates with industry authorities, technology parks, and venture capitalists to create a regional technology finance ecosystem [7] - The branch hosts events to facilitate communication among investment managers, brokers, and industry experts, exploring new development opportunities for technology enterprises [7] - The branch aims to deepen the "Starry Sky" action plan, optimize service systems, and innovate product models to provide quality financial services to more specialized and innovative "little giant" enterprises [7]

A massive acquisition could be hitting Hollywood very soon. According to the Wall Street Journal, who's reporting Paramount Sky Dance is preparing a majority cash bid for Warner Brothers Discovery. The move would see the two titans of the entertainment industry come together.And you can hear some of the you can see some of the massive companies that would be affected by the deal like HBO and CNN, which are owned by Warner Brothers, and CBS and MTV under Paramount, not to mention their historic movie studios ...

Group 1 - Paramount is preparing a cash offer to acquire Warner Bros. Discovery, which would be the largest consolidation in Hollywood since Disney's $71 billion acquisition of Fox in 2019 [1] - The acquisition plan is backed by the Ellison family, with David Ellison's father, Larry Ellison, being the co-founder of Oracle and one of the world's richest individuals with a net worth of $383 billion [1] - Following the news, Warner Bros. stock surged nearly 29%, while Paramount's stock rose over 15% to $17.46 after an initial dip [1] Group 2 - Warner Bros. CEO David Zaslav's decision will significantly influence the success of the potential acquisition, as he announced plans to split the company into two focusing on cable and streaming production [4] - Zaslav believes that separating the debt-laden cable network will enhance the value of its streaming and production assets [4] - For the acquisition to proceed, Ellison's offer must convince Zaslav that an immediate sale is more beneficial than waiting for the split [4] Group 3 - If the deal is finalized, it would reduce the number of major traditional media studios in the U.S. from five to four, marking a significant industry reshuffle [5] - The merged entity would possess some of the most recognized IP assets in the industry, including Paramount's "Mission: Impossible" series and "The Godfather," along with Warner Bros.' "Harry Potter" series and HBO's "The Sopranos" [6][5] - The merger would consolidate both companies' substantial production facilities in Southern California, enhancing their competitive edge in content creation [6] Group 4 - The potential acquisition is driven by the severe challenges facing the traditional media industry, including subscriber losses to streaming platforms like Netflix and YouTube, and stagnant cinema attendance [7] - Major media companies, including Warner Bros., are undergoing restructuring to prioritize paid streaming services amid pressure from investors for profitability [8] - The industry has seen significant layoffs and budget cuts in content production due to the need for rapid transformation and the impact of recent strikes by writers and actors [8] Group 5 - The trend of seeking restructuring and divestiture is evident, with Warner Bros. planning a split and Comcast announcing plans to divest its cable networks [9] - Comcast, the parent company of NBCUniversal, is expected to complete the spin-off of its networks by the end of this year, indicating a broader strategy among traditional media giants to focus on core businesses [10]

Core Viewpoint - Paramount Skydance is preparing a takeover offer for Warner Bros Discovery (WBD) to consolidate two major US media conglomerates and Hollywood studios [1][2] Group 1: Takeover Bid Details - Paramount is planning a majority cash bid for WBD, supported by the Ellison family [2] - Following the news, shares in WBD increased by up to 34% [2] Group 2: Company Background - WBD owns significant media assets, including Warner Bros studios, CNN, DC Comics, and several TV networks like HBO [2] - Paramount owns Paramount Pictures and TV broadcasters such as CBS in the US and Channel 5 in the UK [3] Group 3: Recent Strategic Moves by Ellison - David Ellison has quickly made strategic moves since taking control of Paramount, including a $7.7 billion deal for UFC broadcasting rights and exclusive contracts with the Duffer brothers and Activision for a Call of Duty movie [4] - Decisions regarding CBS News, a major news operation, have come under scrutiny, particularly related to a settlement with Donald Trump over a controversial interview [5][6] Group 4: Implications for Media Landscape - The potential acquisition of WBD raises questions about the future of CNN, which has faced criticism from Trump regarding its coverage [8]

UFC Rights Deal & Paramount Plus - Paramount Global secures a 7-year, $7.7 billion rights deal for all UFC matches, including numbered fight nights (approximately 13) and broader fight nights (approximately 30) [2] - The UFC rights deal is valued at $1.1 billion, signaling David Ellison's commitment to the media industry [3] - Paramount Plus aims to increase its subscriber base from 77 million to 90-100 million by leveraging UFC content [4] - CBS's linear TV reach is crucial for the UFC to monetize its content, balancing advertising revenue with Paramount Plus subscriptions [4][5][6] CBS & Streaming Strategy - The strategy for the Ellisons is to leverage linear channels like CBS for profit and reach while investing in streaming properties like Paramount Plus [9][10] - CBS News is considered a separate entity with plans for unbiased transparency [9][10] - CBS maintains major properties like NFL, golf, and 60 Minutes, attracting millions of viewers [11] Potential Mergers & Acquisitions - There is speculation about a potential merger between Warner Bros' studio and streaming aspects with Paramount [13] - Peacock and Max are interesting potential rollup joint venture partners for streaming scale [14][15] - The Ellison's are focused on investing to achieve streaming scale independently [16]