Warner Bros. Discovery Inc. is likely to turn down Paramount Skydance Corp.’s hostile takeover bid worth $108.4 billion, Bloomberg and Reuters reported quoting people familiar with the matter.According to the Bloomberg report, the latest twist in the race for acquiring the production house comes amid Warner Bros Discovery's concerns regarding financing and other such terms.The board of Warner Bros Discovery is likely to reject the offer by Paramount Skydance as early as Wednesday and may ask shareholders to ...

Core Viewpoint - Netflix has announced its acquisition of Warner Bros for US$82.7 billion, raising concerns about the future of cinema and the entertainment industry as a whole [1][2][3] Company Summary - Netflix's acquisition of Warner Bros is seen as a significant shift in its strategy, moving from building original content to acquiring established intellectual property [2][3] - The deal is expected to enhance Netflix's content library and reduce licensing costs, allowing it to own popular franchises instead of renting them [3] - Netflix co-CEO Ted Sarandos indicated that the company aims to make the transition from cinema to home viewing more consumer-friendly, suggesting shorter theatrical runs [6][12] Industry Summary - The acquisition has sparked criticism from various stakeholders, including film fans and the U.S. government, due to concerns about the consolidation of streaming services and its impact on cinema attendance [1][11] - Cinema attendance has been declining, with projections indicating a 13% drop in global box office revenue by 2025 compared to pre-COVID levels [4] - The deal may face regulatory scrutiny due to antitrust concerns, as it consolidates major players in the streaming and film industry [11] - There is a growing appetite for in-person entertainment among younger audiences, which could influence Netflix's approach to cinema in the future [13][14]

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]

John, with respect, a veteran of the media industry in this country, former president of CNN, a serial founder of media companies, modern day media companies. Lucas talked about what happens next. And the expectation I believe you share this view is that this will go on for many months.There will be challenges along the way in the antitrust context. This is going to be a saga that plays out longer than Game of Thrones did, because, you know, not only do you have shareholder issues, your questions potentiall ...

Key Points Streaming giant Netflix is acquiring Warner Bros. Discovery in a cash-and-stock deal valued at $27.75 per share. The acquisition will bring HBO Max and all of its content into Netflix’s ecosystem. The deal is expected to be finalized in late 2026. 10 stocks we like better than Netflix › Streaming giant Netflix (NASDAQ: NFLX) just announced its largest acquisition ever. The company plans to acquire certain assets owned by Warner Bros. Discovery (NASDAQ: WBD) for $72 billion. This is so ...

Netflix just made a big acquisition. Will it pay off for the company?Streaming giant Netflix (NFLX 1.53%) just announced its largest acquisition ever. The company plans to acquire certain assets owned by Warner Bros. Discovery (WBD +3.57%) for $72 billion.This is somewhat uncharacteristic of Netflix, which typically relies on content it produces itself and licensing deals to feature content owned by third parties. So, here are the details of the deal and what Netflix's investors should keep in mind.A cash-a ...

Core Viewpoint - Netflix Inc. has agreed to acquire Warner Bros. Discovery Inc. in a significant merger that combines the leading paid streaming service with a historic Hollywood studio [1] Group 1: Deal Details - Warner Bros. shareholders will receive $27.75 per share in cash and Netflix stock, with a total equity value of the deal at $72 billion and an enterprise value of approximately $82.7 billion [2] - Prior to the sale's closing, Warner Bros. will complete a planned spinoff of its cable channels, including CNN, TBS, and TNT [2] Group 2: Strategic Implications - This acquisition represents a major strategic shift for Netflix, which has not previously engaged in a deal of this magnitude, having built its value by licensing content and creating original programming [3] - With this purchase, Netflix gains ownership of the HBO network and its acclaimed shows, as well as Warner Bros.' extensive film and TV archive, including franchises like Harry Potter and Friends [4] Group 3: Market Context - Warner Bros. initiated the sale process in October after receiving interest from multiple parties, including Paramount Skydance Corp. and Comcast Corp., leading to a competitive bidding environment [5] - The traditional TV sector is experiencing significant contraction, with Warner Bros.' cable TV networks reporting a 23% revenue decline in the latest quarter due to subscription cancellations and advertiser shifts [6] Group 4: Financial Overview - Netflix, originally founded as a DVD rental service, reported $39 billion in revenue for 2024, while Warner Bros. also had over $39 billion in sales [7] - The acquisition of Warner Bros.' iconic content positions Netflix to strengthen its programming and maintain its competitive edge against rivals like Walt Disney Co. and Paramount [7] Group 5: Regulatory Considerations - The deal is expected to face antitrust scrutiny in the US and Europe, with concerns raised by California Republican Darrell Issa regarding potential consumer harm [8] - Netflix has identified Alphabet Inc.'s YouTube as one of its primary competitors, despite the regulatory concerns surrounding the acquisition [8]

Core Viewpoint - Netflix Inc. has agreed to acquire Warner Bros. Discovery Inc. in a landmark deal valued at $72 billion in equity and approximately $82.7 billion in enterprise value, marking a significant strategic shift for Netflix [1][3][6] Company Overview - Warner Bros. shareholders will receive $27.75 per share, consisting of $23.25 in cash and $4.50 in Netflix common stock [1][11] - The acquisition will allow Netflix to own the HBO network and its extensive library, including popular shows like The Sopranos and The White Lotus, as well as significant film and TV assets [4][9] Strategic Implications - This acquisition represents a dramatic change for Netflix, which has historically grown without owning a studio or library, relying instead on licensing and original content [3] - Netflix aims to maintain Warner Bros.' current operations and enhance its production capacity in the U.S., which is expected to create jobs and strengthen the entertainment industry [5] Financial Aspects - The deal is projected to generate annual cost savings of $2 billion to $3 billion by the third year [6] - Netflix has secured $59 billion in debt financing for the acquisition, with financial advisement from multiple firms [12] Market Context - The traditional TV sector is experiencing a significant decline, with Warner Bros.' cable networks reporting a 23% revenue drop in the last quarter due to subscription cancellations and advertiser shifts [8] - The acquisition is anticipated to face antitrust scrutiny in both the U.S. and Europe, raising concerns among regulators and competitors [9][10]

Core Viewpoint - Netflix is reportedly considering a bid for Warner Bros Discovery (WBD) after WBD expressed openness to takeover offers, indicating a potential bidding war in the media industry [1][4][6] Group 1: Potential Bidders - Netflix is among the suitors interested in acquiring WBD, which owns popular franchises like Harry Potter and channels such as HBO and CNN [1][2] - Comcast has also been identified as a potential bidder for WBD [1] - The Ellison family, who control Paramount, have shown interest in merging WBD with Paramount, although a previous offer was rejected by WBD as too low [3][4] Group 2: Strategic Review and Market Response - WBD has initiated a comprehensive review of strategic alternatives, considering the sale of parts or the entire business after receiving unsolicited interest from multiple parties [5][6] - The company's shares rose by more than 11% following the announcement of its openness to a sale [6] Group 3: Industry Context - A potential acquisition of WBD by Netflix would mark a significant move by a tech company into Hollywood, following Amazon's acquisition of MGM for $8.5 billion in 2022 [2] - The restructuring of WBD's streaming and studio divisions reflects a shift in strategy, moving away from its previous focus on a planned spin-off by mid-2026 [5][7] - A merger between WBD and Paramount would significantly reshape the US media landscape, providing the scale needed to compete with major players like Netflix and Disney [8]

Core Insights - Kartoon Studios has appointed Jeffrey Schlesinger, a veteran in global media, to its Board of Directors, which is expected to significantly impact the company's growth strategy [1][5][6] Company Overview - Kartoon Studios is a leading global producer and distributor of premium children's and family entertainment, with a strong portfolio of intellectual properties (IP) [7] - The company operates Mainframe Studios, one of North America's largest animation producers, delivering over 22,000 minutes of award-winning programming [7] Leadership Experience - Schlesinger brings over 30 years of experience, having previously led Warner Bros. Worldwide Television Distribution, expanding its television business across more than 220 territories [2][4] - Under his leadership, Warner Bros. generated recurring revenue from iconic shows such as "Friends" and "Game of Thrones," and managed the world's largest animation library with over 10,000 episodes [2][3] Strategic Growth Plans - Schlesinger's appointment aligns with Kartoon Studios' ambitious growth plan to capture a larger share of the global kids' entertainment market [6] - The company aims to expand distribution for its premium IP portfolio, including new franchises based on "Winnie the Pooh" and the "Stan Lee Universe," while developing new revenue streams across various platforms [6][9] Business Model Transformation - Schlesinger is expected to accelerate the transformation of Kartoon Studios' business model by enhancing global distribution channels and leveraging his expertise in deal-making [9][10] - The focus will be on driving revenue growth through syndication, licensing, and international co-productions, as well as optimizing content exploitation across multiple platforms [9][10]