Core Viewpoint - The U.S. Department of Justice (DOJ) is investigating Netflix's proposed $72 billion acquisition of Warner Bros. Discovery, focusing on potential anticompetitive behavior and whether the deal could create a monopoly [1][15]. Group 1: Investigation Details - The DOJ's inquiry includes examining Netflix's market power in negotiations with independent content creators, such as movie studios and filmmakers [6][15]. - The investigation is a clear indication that the Trump administration is extending beyond a standard deal review, contradicting Netflix's claims of a typical process [1][15]. - The review is expected to take several months, potentially benefiting rival bidder Paramount Skydance Corp. [2][15]. Group 2: Netflix's Position - Netflix asserts that it operates in a highly competitive market and denies any claims of monopolistic behavior, stating it does not hold monopoly power or engage in exclusionary conduct [5][15]. - The company is spending approximately $20 billion on programming in 2023, which includes original series and licensed content [7][15]. - Netflix accounts for about 9% of TV viewing in the U.S. and has a significant share of the streaming market, comparable to competitors like Disney and Comcast [9][15]. Group 3: Competitive Landscape - Warner Bros. is in discussions with Paramount regarding a potential increase in its offer price for acquisition, indicating ongoing competitive dynamics in the industry [10][15]. - Paramount has expressed skepticism about Netflix's ability to pass regulatory scrutiny for its acquisition offer, claiming that its own tender offer has no statutory impediments [11][15]. - The ongoing review in the EU and potential challenges from U.S. state attorneys general could further complicate the acquisition landscape for both Netflix and Paramount [12][15].

Core Viewpoint - Netflix remains a dominant player in the streaming video industry, with strong financial results that continue to impress despite a recent decline in stock price [2]. Financial Performance - In Q4, Netflix reported a revenue increase of 17.6% year over year, reaching $12.05 billion, and diluted EPS of $0.56, which is a 30% increase [4]. - The company exceeded analysts' expectations, with consensus estimates of $11.97 billion in revenue and $0.55 in EPS [4]. Membership and Engagement - Netflix surpassed 325 million paid memberships in Q4, up from 302 million at the end of 2024 [5]. - Viewing hours increased by 2%, driven by a 9% rise in Netflix Originals viewership, highlighting strong audience engagement [6]. Advertising Revenue - The "basic with ads" tier has become a significant growth driver, with ad revenue soaring 250% year over year to over $1.5 billion [5]. Future Outlook - The company forecasts revenue growth of approximately 13% to $51.2 billion for the full year, with ad revenue expected to double [7]. - Operating income is projected at around $16.1 billion, resulting in an operating margin of 31.5% [7].

Entertainment Industry Trends - Romantic comedy "Nobody Wants This" fell to second place on Netflix's top 10 list after two weeks [1]

Core Viewpoint - Netflix has announced a 10-for-1 stock split, marking only the third time in its history, which has generated significant interest among investors and raises questions about the implications of such a move [3][5]. Business Performance - Netflix has a substantial audience of over 500 million people across 190 countries, broadcasting in 50 languages [1]. - The company's stock price has surged, climbing 44% over the past year, and showing increases of 116% and 936% over the last five and ten years, respectively [2]. - For the first nine months of 2025, Netflix reported a revenue growth of 15% year-over-year to $33.1 billion, with earnings per share (EPS) rising 26% to $20.12 [14]. Stock Split Details - The stock split will be effective for shareholders of record as of November 10, 2025, with additional shares distributed after the market closes on November 14, 2025 [5][6]. - Post-split, shareholders will own 10 shares valued at approximately $110 each, based on the current trading price of around $1,100 per share [7][8]. Investor Psychology and Market Impact - Stock splits can create excitement among investors, potentially driving up stock prices; historically, companies that split their stock see an average price gain of 25% in the year following the announcement [10]. - The motivation behind Netflix's split includes making shares more accessible to employees participating in the stock option program [10]. Future Outlook - Netflix's operating margin has improved, reaching 31.3% in 2025, up from 27.4% in 2024 and 20.9% in 2023, indicating increased profitability despite ongoing content investments [14]. - Upcoming releases, including the final season of "Stranger Things" and other popular series and films, are expected to drive further engagement and revenue growth [15]. - The stock is currently priced at 34 times next year's expected earnings, which is considered a fair valuation given the company's anticipated revenue growth of approximately 12% annually over the next five years [16].

RT Bloomberg Live (@BloombergLive).@nwtnetflix Creator @efosta tells @CarolineHydeTV what inspired her to write the hit show "Nobody Wants This" at the #BloombergScreentime event in LA https://t.co/SRNm6rWqh8 https://t.co/Gys3xonJGe ...

RT Bloomberg Live (@BloombergLive)With the success of @netflix’s 'Nobody Wants This' (@nwtnetflix), @saramfoster and @efosta have proven that audiences are hungry for new storytelling. We hear from the powerhouse duo about what it takes to sell original IP in Hollywood at #BloombergScreentime October 9th. ...

Content Creation & Audience Demand - Netflix's "Nobody Wants This" (@nwtnetflix) demonstrates audience appetite for new storytelling [1] - Sara M Foster and E Fosta have proven the demand for original IP [1] Industry Event - Sara M Foster and E Fosta will discuss selling original IP in Hollywood at Bloomberg Screentime on October 9th [1]