To The Moon

Extra, Extra. Read All About It. It is official. $Netflix(NFLX)$ has emerged victorious with what appears to be the highest & winning bid for $Warner Bros. Discovery(WBD)$. According to Deadline, NFLX will commence exclusive talks to finalize a deal. This caps a tumultuous day that saw $Paramount Skydance Corp(PSKY)$ move aggressively to counter the giant streamer and seal a deal of its own for WBD. According to sources, NFLX offered $27.75 a share for WBD, mostly in cash vs PSKY all-cash of $30 a share. Many believe this fast-moving auction is one that will reshape the entertainment landscape dramatically, locally in the US and globally. The Bidding War. WBD put itself on the block in October 2025, to open up the process after receiving 3 consecutive offers from PSKY, within the span of a month. Warner has hoped to get a deal in place by mid-to-late December 2025. NFLX would acquire (a) the Warner Bros. Studios and (b) HBO Max streaming assets. In addition, Bloomberg reported that NFLX offered a $5 billion breakup fee if the deal fails to close. PSKY’s offer was for all of WBD and has argued that it was the only 1 of 3 bidders, with a clear path to closing. In its letter to WBD, PSKY insisted that rivals’ (Netflix and $Comcast(CMCSA)$ ) offers, present serious issues that no regulator will be able to ignore. PSKY believes NFLX, being the dominant streamer in US & globally, would face major antitrust hurdles adding HBO Max to the fold. On Fri, 05 Dec 2025, PSKY shares tumbled by -9.82%, closing off the week at $13.36, on news that its final bid fell short. PSKY merger with Warner Bros. would have significantly bolstered its market position against larger rivals like $Walt Disney(DIS)$ , $Amazon.com(AMZN)$ and Netflix, that is now set to get bigger. Comcast made up the third bidder for the studio and streaming businesses. 🗣️ Accusations of a Tainted Sale Process PSKY’s Chairman / CEO - David Ellison also called the sale process unfair and tilted towards NFLX. WBD refuted, saying its board “attends to its fiduciary obligations with the utmost care, and that they have fully and robustly complied with them and will continue to do so.” In a veiled attack on WBD CEO David Zaslav, PSKY further claimed: WBD’s sales process has been tainted by management conflicts. It is possible that WBD's CEO, David Zaslav, and other leaders may get personal benefits, like jobs and money, if the deal goes through, not forgetting economic incentives embedded in recent amendments to employment arrangements. Equally twisted, PSKY has offered Zaslav a job if their companies merged. However, Zaslav's pay deal was recently changed to reward him if WBD is sold, instead of the original plan to split WBD into 2 separate companies. Had the split occur, Zaslav would have been CEO of the smaller Warner Bros., while WBD's CFO Gunnar Wiedenfels would have run the other TV company, Discovery Global. It seems fair to say that a good deal of ill will has built up between the two camps. It is still unclear, what role Zaslav would play in a Warner-Netflix merger. 📈 Market Reaction and Analyst View WBD shares are up +6.28% at $26.08 on Fri, 05 Dec 2025 trading, that is a 52-week high and nearly 4x WBD’s low of $7.50 in 2025. Truth be told, the shares had been sluggish since Discovery acquired WarnerMedia in April 2022 but perked up dramatically of late, when it emerged as a takeover target. (see below) All three buyers were offering a significant premium to the stock price pre-merger chatter. As succinctly pointed out by Bank of America, analyst Jessica Reif Erlich, all 3 bidders were: Willing to pay for the elimination of a competitor. Acquire of the franchise control. Potential synergy to be had, integrating one of the most valuable content and IP libraries in the world into their platforms.. IP such as from Harry Potter to DC Comics to Game of Thrones, a “crown jewel.” 👑 Strategic Value for Netflix It’s hard to overstate what a major pivot this deal would be for NFLX, which has made very few acquisitions in its history, preferring to grow organically. NFLX is the undisputed streaming leader in subscribers. However, it still lags other media companies on deep IP libraries that could offer potential use cases for theme parks, experiences, Broadway shows, gaming and merchandising. Although, NFLX has long argued that M&A was a distraction and that it could build its own franchises more efficiently than buying them, the landscape has shifted said Erlich. Acquiring DC Comics, Harry Potter, Hanna-Barbera and other WBD library properties provide NFLX with a deep set of well-known IP. Further, the acquisition would provide NFLX with physical production capacity and prestige that could help to court talent at another level. ✂️ The Divestiture of WBD Assets. As per WBD’s original split plans, the Warner Bros. studios and streaming business consists of: Warner Bros Television. Warner Bros Motion Picture Group. DC Studios. HBO & HBO Max, as well as their film and television libraries. Global Networks, or the businesses that would likely not go to NFLX, include entertainment, sports and news television brands and channels globally including: Cable News Network (CNN). TNT Sports. Discovery networks. Top free-to-air channels across Europe. Discovery+ streaming service. Bleacher Report. Should the deal go through, NFLX would gain: A global theatrical distribution apparatus. A massive library that includes titles from the DC Studios, Turner Entertainment, HBO, New Line, and MGM pre-May 1986 catalog. 🎬 Theatrical Commitments and Conflicts of Interest Exhibition and the film community in general have been fearful of a Warner Bros-Netflix union. NFLX has reportedly said it will honour Warner Bros.’ theatrical commitments in a merger. However, NFLX led by co-CEOs Ted Sarandos and Greg Peters have repeatedly emphasized over the years that its focus is squarely on serving its streaming subscribers. Will there be a possibility of conflict of interest, in the making - if NFLX acquisition completes successfully ? Afterall, NFLX is known to favour a 17-day exclusive theatrical window before movies arrive in the home. This while the No. 1 circuit $AMC Entertainment(AMC)$ has been lobbying for a 45-day window. The two sides have been so far apart that the streamer’s awards contenders this year House of Dynamite, Wake Up Dead Man, Jay Kelly and Frankenstein did not receive any screens in the top 3 circuits (AMC, Regal & Cinemark). To date, NFLX’s only movie to No. 1 was KPop Demon Hunters Singalong during the last weekend of August which made $19 million over two-days (all circuits played it except AMC) Investors will need to be patient while NFLX & WB works out a deal in the midst of regulator scrutiny. When the deal is inked, NFLX will skyrocket. Until then, it is anyone’s guess … Due to creative differences and bias, I will scale back my posting. My 2,430 ‘timeless’ posts remain available (for now) for those who value fundamentals as Mr Buffett had pointed — invest in businesses, not pick stocks. To new subscribers, no flashy screens to entice blind investing. I aim to share on how to fish, not fish for you. I’m grateful to share what I know. In the alternate moo moo universe, where I am valued & appreciated, I will still be sharing. Good luck on your i-journey. Remember to check out my other posts. (See below). Help to Repost ok, Thanks. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Burry vs Musk : Who Wins This Round ? US Economic Reports - Fed's Focus Before FOMC ? NU : Bank Stock To Have and To Hold ! Do you think Netflix can successfully buy Warner Bros. before 2025 is out ? Do you think NFLX’s valuation will increase with WB acquisition ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents