Bloomberg Intelligence Podcast – Detailed Episode Summary
Episode: Paramount Extends Tender Offer for Warner Bros. Shares
Date: January 22, 2026
Hosts: Scarlet Fu & Paul Sweeney
Episode Overview
This episode dives into major developments in the media and entertainment sectors, focusing on Paramount/Skydance extending its tender offer for Warner Bros. Discovery shares amidst a three-way bidding scenario also involving Netflix. The hosts speak with Sima Shah, VP of Research and Insights at Sensor Tower, for data-backed insights on streaming market dynamics, and later analyze General Electric’s latest earnings with Bloomberg’s Sid Philip. Finally, attention shifts to the aftermath of recent geopolitical moves at Davos, with Gothum Makhanda from Yale assessing the lasting fallout from Trump administration rhetoric and international trust.
Paramount & Warner Bros. Discovery: M&A Drama Unpacked
[01:48] – [08:26]
Key Discussion Points
- Current Situation
- Netflix and Paramount/Skydance are vying for Warner Bros. Discovery.
- Netflix submitted an all-cash bid; Paramount extended their tender offer deadline to Feb 20 after lackluster shareholder enthusiasm.
Why Hasn’t Paramount or Netflix Raised Their Offer?
- Sima Shah (Sensor Tower):
- Paramount needs the merger more due to their “significantly smaller” user share and ad revenue compared to Netflix and HBO/Max.
“I’m more surprised that Paramount hasn't [raised their bid] simply because I think they need the merger more...” — Sima Shah, [02:21]
- Paramount: 4% global monthly active user share vs. Netflix at 48% and HBO Max at 10%.
- OTT ad revenue share: Paramount again sits at 4%, Netflix at 8%, Hulu up at 30–35%.
- HBO’s key asset is its “tentpole shows like White Lotus and now Heated Rivalry that are in the zeitgeist.”
- For Netflix, the acquisition is a “nice to have” that could extend its international growth, especially where HBO is expanding rapidly.
- Paramount needs the merger more due to their “significantly smaller” user share and ad revenue compared to Netflix and HBO/Max.
Shareholder Resistance
- Warner Bros. shareholders currently resist the Paramount offer:
“Warner Brothers shareholders do not want that deal. So... it would have to probably be a substantial jump in price to get over 90%... to change their mind.” — Sima Shah, [02:58]
Implications of Extending the Tender Offer
- Only 7% of Warner Bros. shares have been tendered so far.
“I don't think the delay is simply because people haven't had a chance to tender their shares. I just don't think they find the offer as compelling.” — Sima Shah, [03:57]
- Warner Bros. management is siding with Netflix due to its global reach and retention.
What Happens if Paramount Fails?
- Paramount risks being sidelined in streaming:
“They only have like 4% of active user share... I'm not sure how they continue to really grow.” — Sima Shah, [04:44]
- Paramount may pursue international growth or more sports/local content, but all require significant capital.
Challenge from Short-Form Video
- The streaming space is “competing with short-form video” — overall user attention is fragmenting.
Data Deep-Dive: Warner Bros. vs. Netflix on Engagement
[05:38] – [07:36]
User Metrics
- Netflix:
- 74% user retention,
- ~91 minutes and 11 sessions/week
- Paramount:
- 6.4 sessions/week
- Lower engagement as per Sensor Tower's data
Advertising & Audience Insights
- HBO’s digital advertising is “attractive,” particularly in healthcare, where Netflix underperforms.
- Paramount more willing to “take everything” (assets) to boost their own growth vs. Netflix’s more curated approach.
Market Sentiment: Netflix Shares Drop
[07:25] – [07:36]
- Netflix stock is down 10% this year; 12% over the trailing 12 months.
“It might be... uncertainty of whether, even if they get the deal, if they'll be able to get through antitrust, you know, the FTC, will there be any issues getting the deal through?” — Sima Shah, [07:36]
- Regulation, market fatigue with streaming, and high content costs are all contributing to pressure.
General Electric: Earnings & Strategic Overview
[11:40] – [16:53]
Guest: Sid Philip, Chief Aviation Correspondent, Bloomberg News
Q4 Results and Market Reaction ([12:11]–[12:54])
- GE had a strong Q4 but underwhelmed on 2026 full-year outlook.
“The full year outlook has underwhelmed investors, which is why the shares stumbled.” — Sid Philip, [12:11]
Strategic Focus ([12:54]–[13:17])
- Under CEO Larry Culp, GE has slimmed down to two main businesses:
- Aerospace (commercial and defense engines)
- Defense propulsion
Aerospace Dominance ([13:17]–[14:22])
- GE/CFM supplies 75% of narrowbody jet engines and all of Boeing’s widebody engines.
- Strong maintenance/aftermarket segment keeps revenue steady.
- Defense sales up, though facing potential resistance due to political scrutiny over buybacks/dividends.
Supply Chain Challenges ([15:07]–[16:53])
- Aerospace manufacturing is hamstrung by supply chain and labor constraints.
“If one part’s missing, then you can’t actually put together an engine...” — Sid Philip, [16:21]
- Hiring skilled labor remains an industry-wide issue.
Davos & Geopolitics: U.S. Alliances in the Trump Era
[19:43] – [26:02]
Guest: Gautam Makhanda, Lecturer at Yale School of Management & Bloomberg Opinion Contributor
Tariffs, Greenland & U.S. Image ([20:23]–[22:03])
- Trump administration touts “wins” at Davos around Greenland/mineral rights, but the reality is all concessions were previously available.
- Real damage: Fractured trust with allies like Canada (Trudeau equates U.S. to a “predator”).
“It’s almost impossible to overstate the level of the damage there...would not have been even close to being worth destroying the trust that the United States has built up…” — Gautam Makhanda, [21:37]
Loss of International Trust ([22:24]–[24:28])
- Trust undermined not just in U.S. administrations, but in the electorate:
“Europeans say ... Trump is a reflection of something deep about what's happening in the United States right now... they do not trust the American public to not keep electing people like the Trump administration.” — Gautam Makhanda, [22:45]
- Congressional silence is due to fear and political dynamics post-January 6.
Europe’s Disorganized but Simmering Response ([24:28]–[26:02])
- European responses have been “weak,” but recent military gestures (troops into Greenland) mark a shift.
- Expect more pushback on U.S. firms (e.g., defense contractors, Microsoft facing regulatory scrutiny).
Notable Quotes by Timestamp
- Sima Shah (Sensor Tower)
- [02:21] “I think [Paramount] need the merger more based on their performance...”
- [03:57] “I don't think the delay is simply because people haven't had a chance to tender their shares. I just don't think they find the offer as compelling."
- [04:44] "I think it just pushes them [Paramount] further to the margin."
- Sid Philip (Bloomberg News)
- [12:11] “The full year outlook has underwhelmed investors, which is why the shares stumbled.”
- [16:21] “If one part’s missing, then you can’t actually put together an engine...”
- Gautam Makhanda (Yale/Bloomberg Opinion)
- [21:37] “It’s almost impossible to overstate the level of the damage there...would not have been even close to being worth destroying the trust that the United States has built up…”
- [22:45] “Europeans say ... Trump is a reflection of something deep about what's happening in the United States right now...”
Key Takeaways
- Media M&A: Paramount faces existential pressure, but their bid for Warner Bros. lacks traction. Netflix might be content to wait, with regulatory hurdles in play for any deal.
- User & Revenue Share: Paramount is an also-ran against Netflix and HBO/Max; HBO’s “zeitgeist” content and ad reach are key assets.
- Streaming Headwinds: All players face engagement and retention challenges as consumer attention fragments.
- GE’s Restructuring & Challenges: Despite focused aerospace and defense lines, supply/labor woes hit profitability and investor sentiment.
- Geopolitical Fallout: U.S. credibility among allies erodes after Davos, with Europe starting to show resistance, especially in defense sector cooperation.
This episode is essential listening for anyone seeking perspective on the latest streaming industry power plays, the undercurrent of shifting U.S. alliances and trust, and the challenges facing iconic American companies like GE.