Bloomberg Intelligence Podcast Summary

Episode Title: Warner Bros. Rejects Latest Paramount Bid, Favoring Netflix
Date: January 7, 2026
Hosts: Carol Massar, Tim Stenovec
Featured Guests: Geetha Ranganathan (Media Analyst, Bloomberg Intelligence), Caroline Hyde (Bloomberg News), Brian Eggers (Senior Gaming and Lodging Analyst, Bloomberg Intelligence), George Ferguson (Senior Aerospace Analyst, Bloomberg Intelligence)

Episode Overview

This episode focuses on the ongoing saga in media M&A, with Warner Bros. Discovery rejecting Paramount’s updated takeover bid and continuing to favor a competing deal with Netflix. The podcast dives into the rationale behind Warner Bros.’s decision, the dynamics of the current bidding war, concerns in the cable TV business, and broader implications for the streaming and entertainment landscape. The episode also touches on developments from CES regarding AI and memory chip market trends, analyzes sports prediction markets, and discusses Boeing’s outlook with a new order from Alaska Airlines.

Main Segment: Warner Bros. Discovery, Paramount & Netflix Bidding War

[01:43 – 07:12]

Key Discussion Points

Paramount Bid and Warner Bros. Response

• Warner Bros. Discovery has again rejected Paramount’s improved takeover offer.
  • Despite Paramount meeting prior demands (personal guarantee from Larry Ellison and increase in termination fee to $5.8B), Warner Bros. still deems the offer inadequate.
  • Debt Concerns: Warner Bros. highlights the “leveraged buyout” nature of Paramount’s bid, calling it “probably the biggest one in the history of M&A” with “too many risks and too many uncertainties.”
  • Cost of switching from Netflix to Paramount’s offer (including termination fees and financing costs) is now around $1.80 per share.
• Quote:
  • “They actually call this a leveraged buyout, probably the biggest one in the history of M&A and so say that it just presents too many risks and too many uncertainties and is definitely inferior to the Netflix offer.”
    — Geetha Ranganathan [02:16]

Shareholder Sentiment & Expectations

• Only 500,000 shares (out of 2.6 billion) have tendered at Paramount’s $30 price.
  • Indicates shareholders anticipate a price increase, possibly expecting a bidding war.
  • Street speculation: Warner Bros. CEO David Zaslav is eyeing $34 per share as the “final” price to accept a Paramount deal.
• Quote:
  • “The number out there on the street is that David Zaslav is looking for $34 as the final offer at which he will sign his company away to Paramount.”
    — Geetha Ranganathan [03:48]

Netflix’s Position and Strategy

• Netflix remains largely silent, only reiterating they are working with Warner Bros. Discovery and regulators to close the deal.
• Geetha expects Netflix will only raise its bid if Paramount further sweetens its own offer; Netflix is motivated by the long-term strategic value of Warner Bros.’s assets.
• Quote:
  • “It’s not just the cost of doing deal, it’s the cost of not doing the deal. And they obviously do not want to strengthen their competitors.”
    — Geetha Ranganathan [05:19]

Implications from Cable Networks & Industry Trends

• Warner Bros. Discovery had planned to spin out cable networks, similar to Comcast’s move with Versant Media.
  • Versant’s shares have dropped ~25% in the past few days, spotlighting the cable network sector’s rapid decline.
  • Despite different scale and international footprint, the writing is “on the wall” for the traditional TV network business.
• Quote:
  • “The TV network business is bleeding. Not a slow death anymore. This is really happening fast and furious.”
    — Geetha Ranganathan [06:28]

CES Highlights: AI & Semiconductor Updates

[10:09 – 14:13]

Key Discussion Points

Accelerated AI Demand & Energy Needs

• Interviews with Nvidia's Jensen Huang and Siemens' Roland Busch emphasize the insatiable energy requirements for the expanding AI industry.
  • Nvidia claims a “10X” increase in energy efficiency with each new chip generation, yet demand continually outpaces gains.
  • CEO Lisa Su of AMD predicts a 100x increase in compute needs in upcoming years.

Memory Chip Market Boom

• Memory storage shortages are fueling stock surges (e.g., SanDisk up 1000% from its lows).
  • Samsung indicates further price hikes ahead due to tight supply.
  • US memory maker Micron saw 240% gains in 2025 and is still rallying.
• Ongoing debates over whether AI and chip trends are a bubble, but infrastructure buildout continues at massive scale.

CES Consumer Tech Trends

• The show balances AI-driven innovation (humanoid robots, interconnected home tech) with traditional consumer electronics (unique TVs, quirky gadgets).
• Quote:
  • “The main thing, guys, I cannot walk without seeing a humanoid robot of some sort... apparently cute is the way in which we’re going to go forward.”
    — Caroline Hyde [12:52]

Sports Prediction Markets & Legal Landscape

[16:48 – 22:51]

Key Discussion Points

Expansion of Prediction Markets

• DraftKings and FanDuel have ventured into prediction markets (separate from sportsbooks) to compete with Kalshi and Robinhood in financial-event-based contracts.
  • Focused on non-sports states due to regulatory hurdles.
  • Some states have issued “cease and desist” orders.

State vs Federal Regulatory Tension

• Sportsbooks are state-regulated; prediction markets are federally regulated (CFTC).
  • Ongoing legal disputes over jurisdiction may be headed to the Supreme Court, possibly by 2026.

Risks & Impact on Casinos and Leagues

• Casino operators may participate in prediction markets, especially in states lacking legal sports betting.
  • Activity growing among younger demographics, raising questions about regulation and consumer protection.
• Quote:
  • “It’s surprising and it also gets very problematic when you have college kids, college games, college players. But yeah, there’s a big national draw to this...”
    — Brian Eggers [21:08]

Boeing’s Major Order and Airline Strategy Discussion

[25:05 – 30:29]

Key Discussion Points

Alaska Airlines’ Major Boeing Order

• Alaska Airlines orders 105 Boeing 737 Max 10s and five 787 widebody aircraft.
  • Seen as a positive indicator for Boeing, regaining momentum over Airbus in orders.
  • Alaska has been a core Boeing customer, even as its acquisition of Hawaiian added Airbus planes to its fleet.

Alaska’s Growth Ambitions

• The new order signals a pivot from a regional West Coast carrier to a global full-service airline, leveraging acquisition synergies and expanded routes.
  • Aspirations to join the ranks of major US global carriers, adding premium service and international destinations.

Airline Industry Trends for 2026

• Premium seating expansion could saturate the market; loyalty programs remain crucial.
  • Mergers between large carriers (e.g., Alaska and Southwest) would face significant regulatory scrutiny.

Memorable Quotes & Notable Moments

• On the need for a “sweetened bid:”
  “[Warner Bros.] do need a sweetened offer... this just presents too many risks and too many uncertainties.”
  — Geetha Ranganathan [02:16]

• On media M&A brinksmanship:
  “We used to call that the final final offer.”
  — Carol Massar [04:39]

• On the decline of cable networks:
  “The TV network business is bleeding. Not a slow death anymore. This is really happening fast and furious.”
  — Geetha Ranganathan [06:28]

• On CES atmosphere:
  “The main thing, guys, I cannot walk without seeing a humanoid robot of some sort.”
  — Caroline Hyde [12:52]

• On regulatory chaos in new betting markets:
  “It’s confusing... state vs federal. Ultimately, I think this heads to the Supreme Court.”
  — Brian Eggers [19:06]

Timestamps for Segments

• Media M&A: Warner Bros., Paramount, Netflix: [01:43 – 07:12]
• CES and AI/Chip Industry: [10:09 – 14:13]
• Sports Betting & Prediction Markets: [16:48 – 22:51]
• Aviation: Alaska Airlines & Boeing: [25:05 – 30:29]

Closing

This episode offers a deep dive into media’s ongoing transformation, the fierce competition among industry giants, and how tech trends and legal ambiguity are reshaping other major markets. The hosts and Bloomberg Intelligence experts provide actionable insights and forward-looking perspectives for investors, executives, and industry watchers alike.