Episode summary
Warner Bros. Rejects Latest Paramount Bid, Favoring Netflix | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Geetha Ranganathan, Caroline Hyde, Jensen Huang, Brian Egger, George Ferguson
Summary
Warner Bros. Discovery rejected Paramount Skydance’s amended takeover bid and told shareholders to stick with Netflix, arguing that the Paramount proposal still leaves too much value on the table and carries too much leverage and uncertainty. The guest said Warner Bros. now effectively wants compensation for the Netflix termination fee, financing costs, and the risk of walking away from its existing deal, which adds up to about $179 to $180 a share before any real premium for shareholders.
The episode also turned to CES, where Nvidia’s Jensen Huang and other chip executives reinforced the view that AI infrastructure demand is still accelerating. The guest said the industry expects much more compute, more energy, and more memory demand, with shortages already supporting names like SanDisk and Micron.
Later, Brian Egger said DraftKings and FanDuel are pushing prediction-market apps as a way to expand beyond their sportsbooks, but the business faces a messy legal fight between state regulators and the CFTC. George Ferguson said Alaska Air’s order for 110 Boeing aircraft supports Boeing’s recovery and signals Alaska’s ambitions to become a more global airline, even as the broader U.S. airline industry leans harder into premium seating.
Key takeaways
- Warner Bros. Discovery is still pressing for a sweeter bid, with the guest saying David Zaslav is looking for about $34 a share before selling to Paramount.
- The guest said Warner Bros. now frames Paramount’s proposal as a leveraged buyout with too much debt and risk, making Netflix the cleaner alternative.
- At CES, the guest said AI demand is still running hot, with more compute, more power and more memory needed across the industry.
- Brian Egger said DraftKings and FanDuel are using prediction markets to reach states where sports betting is not legal, but the regulatory battle is far from settled.
- George Ferguson said Alaska Air’s Boeing order supports its move from a West Coast carrier toward a more global airline strategy.
Notable quotes
“Warner Brothers Discovery says an amended takeover offer from Paramount Skyance is inferior to its deal with Netflix and urges shareholders not to tender their shares”
“they actually really do need uh you know a sweetened bid”
How the episode opens
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All right, the media M&A trade that just won't go away. Warner Brothers Discovery says an amended takeover offer from Paramount Skyance is inferior to its deal with Netflix and urges shareholders not to tender their shares. I don't know what's going on here people but our next guest does.
Githa Rangan. She is the media analyst for Bloomberg Intelligence here. Actually, Githa, I thought we'd have something done by now.
I mean, these offers are pretty clear. Uh the values seem kind of similar to me. Um what do you think's going on here?
Yes. So this time what Warner Brothers is saying in addition to the fact that the offer is actually inadequate, this is what they said the very first time when they rejected this $30 bid from uh Paramount. Uh you know they obviously wanted the personal guarantee from Larry Ellison which they got.
They wanted you know Paramount to raise its termination fee to 5.8 billion to match Netflix. That also they got but now they're saying that they actually really do need uh you know a sweetened bid. So they cite a number there.
They say that uh if they had to terminate their agreement with Netflix, they they will also incur, you know, obviously they have to pay the termination fee plus there's going to be significant financing costs. So all of that comes out to about $1 uh $180 uh close to you 179 or 180 uh a share. So they obviously need to be compensated for that.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- media m&a
- netflix deal strategy
- nvidia ai demand
- sports betting prediction markets
- airline aircraft orders
Companies and tickers mentioned
- PARA
- NFLX
- NVDA
- DKNG
- ALK
- BA
- Warner Bros. Discovery
- Paramount Global
- Skydance
- Netflix
- Nvidia
- DraftKings
- Alaska Air Group
- The Boeing Company
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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