Bloomberg Tech Podcast Summary
Episode: Paramount Makes Hostile Bid for Warner Bros. Discovery
Date: December 9, 2025
Hosts: Caroline Hyde (NY) & Ed Ludlow (SF)
Notable Guests: Lucas Shaw, Brandon Katz, Jennifer Reid, Rich Greenfield, Sarah Olam, Roger Zakheim, Geetha Ranganathan
Episode Overview
In this fast-moving episode, Bloomberg Tech covers breaking news: Paramount Skydance’s $30/share hostile bid to acquire Warner Bros. Discovery, a move that comes just days after Warner reached an agreement to sell key assets to Netflix. The discussion spans deal details, antitrust implications, foreign money in Hollywood, and broader industry shifts. There are also deep dives into proposed US federal AI policy, IBM’s $9.3B purchase of Confluent, and an insightful segment on JP Morgan's commitment to US defense innovation.
1. Paramount’s Hostile Bid for Warner Bros. Discovery
[01:39, 02:22, 03:00]
Key Facts
- Paramount Skydance Hostile Bid: $30/share for all of Warner Bros. Discovery (WBD).
- Netflix Bid (previous week): $27.75/share, targeting just the streaming and studio assets, with legacy cable assets to be spun off.
- Paramount’s bid marks the sixth attempt and the first hostile move after repeated rejections.
Behind the Bids: Financing & Structure
- Paramount Skydance: Backed by David Ellison (Skydance), Larry Ellison, and significant Middle Eastern wealth funds—up to three contributing $24B total, with Larry Ellison providing a $12B backstop.
- Netflix: No foreign capital; considered less controversial from a US regulatory standpoint but raises antitrust flags due to market dominance in streaming.
Key Quote:
"David Ellison is coming back and going hostile with the same bid that was just rejected...Paramount Skydance has now made six different attempts at buying Warner Brothers Discovery."
—Lucas Shaw, [03:22]
Government & Antitrust Considerations
- President Trump (referenced as the current POTUS) has been notably balanced regarding the Netflix deal, praising CEO Ted Sarandos but insisting any deal must undergo antitrust review for market dominance.
- Netflix + HBO/WBD would create a formidable streaming giant, but Paramount + WBD would mean large overlap in traditional TV and film assets.
Key Quote:
"The president's comments...were sort of balanced. On the one hand, he praised Netflix...but he did say that it would need to be reviewed."
—Lucas Shaw, [04:26]
The Role of Foreign Money
- Paramount's bid features significant Middle Eastern investment; Chinese funds reportedly sidelined.
- WBD is wary: more foreign capital adds CFIUS review risk and regulatory complexity.
Key Quote:
"The Middle Eastern money is probably the most interesting part...You do have a lot of Middle Eastern money in this bid."
—Lucas Shaw, [05:41]
2. Streaming Industry Impact & What’s at Stake
[06:32–13:22]
Guest: Brandon Katz, Greenlight Analytics
- Deal Dynamics:
- If Netflix + WBD goes through: New integration of very different businesses—uncertainty on theatrical releases, legacy TV licensing.
- If Paramount + WBD: More redundancies, more predictable, pushes Paramount into top 3 media companies by scale.
- Cable Assets:
- Legacy channels (“fossils,” exemplified by Friends reruns) are cash-generating but seen by Wall Street as a strategic liability.
- Consumer Impact:
- Major mergers might not yield the “one subscription to rule them all” outcome for consumers.
- Netflix might offer HBO as a premium upsell, mimicking Amazon Channels’ aggregator model.
Memorable Analogy:
"Ross was a famous paleontologist in the show, which means he loved fossils, which means he would love the cable network assets."
—Brandon Katz, [11:14]
Market Reactions
- Paramount shares up, Netflix down—investors show more faith in Paramount’s fit.
- If Netflix doesn’t win, “they would still be the number one streaming subscription video service in the world and for the foreseeable future.”
—Brandon Katz, [13:22]
3. US Federal AI Policy—One Rule to Rule Them All?
[16:55–23:50]
Breaking News
- President Trump plans an executive order (EO) to limit state-level AI regulations, establishing a unified federal standard.
- Draft EO would empower the DOJ to sue states and cut funding if state rules are found unconstitutional or overly restrictive.
Key Analysis:
- Mike Shepard, Bloomberg Senior Tech Editor:
- Over 38 states have enacted nearly 100 separate AI-related measures this year.
- Tech industry leaders (OpenAI, Google, NVIDIA) strongly favor a single national approach.
Notable Quote:
"They really would like to rein in what they call a patchwork of state level rules."
—Mike Shepard, [17:18]
- Sarah Olam, Tech Policy Institute:
- Describes a “matrix” of over 1,000 state AI laws in various categories, making compliance hard for all but the largest firms.
Policy Nuance:
- Executive action seen as a fallback after Congress removed a moratorium on state AI laws from key spending bills.
- Current US approach contrasts with EU’s precautionary regulatory stance and China’s near-silence on AI governance.
4. IBM’s Big Enterprise Bet: Confluent Acquisition
[18:18, 25:07]
Deal Overview:
- IBM acquires data streaming platform Confluent for $9.3 billion (enterprise value: $11B).
- Seen as an infrastructure play to enhance IBM’s Watson AI platform and support real-time data needs as large foundational AI models proliferate.
5. Industry Analysis: Antitrust & Market Definition
[26:45–36:36]
Antitrust Review Process
Jennifer Reid, Bloomberg Intelligence:
- DOJ will use horizontal merger guidelines—defining the market is key (“the broader the market, the lower the combined share…”).
- There’s regulatory flexibility, it’s predictive: DOJ must anticipate the future and then convince a judge.
Rich Greenfield, LightShed Partners:
- Paramount bid “not a simple equation”—depends on investor appetite for cash vs. legacy assets.
- Streaming industry faces seismic change: “movie theater attendance is down 50% from before COVID.” Consolidation considered necessary.
Market Definitions Dilemma:
- Do streaming and linear TV compete?
- Is YouTube (with Sunday Ticket and vast distribution) a competitor to Netflix or legacy TV?
Quote:
"There’s three layers to this: is streaming a distinct market, is streaming and linear TV the same thing...It gets very challenging to define what the market is.”
—Rich Greenfield, [35:43]
6. Defense, JP Morgan, and Tech Policy
[39:07–45:49]
JP Morgan’s $10B Commitment
- JP Morgan (CEO Jamie Dimon) forms a new strategic investment group targeting defense, aerospace, healthcare, energy.
Quote:
“Europe has a problem...They've gone from 90% of the GDP of America to 65%. That's not because America did anything bad to them. It's their own bureaucracy...”
—Jamie Dimon, [39:37]
US National Security & Tech
Roger Zakheim, Reagan Institute:
- US defense innovation surged; most new defense tech companies didn’t exist five years ago.
- “79% view China as the adversary of the United States.”
- Both defense tech industry and policymakers see AI as vital, with a strong preference for “private sector-driven” innovation.
7. The Bidding War: What Happens Next?
[46:12–48:21]
Keith Orang, Bloomberg Intelligence:
- Paramount’s offer “looks superior” (all cash, $30/share, regulatory haste), but Netflix’s bid may provide better total value depending on how cable spinoffs are valued.
- Paramount still may need to raise its bid; as of air time, Warner Bros. Discovery had not responded to the hostile offer.
Quote:
“Paramount kind of removing a lot of what they thought would potentially spark regulatory problems…but again, I don’t know whether shareholders necessarily view this as a superior deal.”
—Geetha Ranganathan, [46:47]
Notable Quotes & Memorable Moments
- "They are adamant and have been for days now that their offer is better than Netflix’s…they’re not going down without a fight." —Lucas Shaw, [03:38]
- “‘Ross was a famous paleontologist in the show...he would love the cable network assets.’” —Brandon Katz, [11:14]
- “Paramount is trying to be a top three contender in the last man standing in the streaming wars...they probably have the most to gain by getting WB.” —Brandon Katz, [13:22]
- “The Department of Justice does tend to define markets narrowly...If the market is defined narrowly...Netflix has a problem. The president is correct. It's a big market share.” —Jennifer Reid, [27:33]
Timestamps for Key Segments
- Paramount Bid and Bidding Dynamics: [01:39–06:32]
- Streaming Integration & Consumer Impact: [06:32–13:22]
- Federal AI Regulation Debate: [16:55–23:50]
- IBM/Confluent Acquisition: [18:18, 25:07]
- Wall Street & Antitrust Analysis: [26:45–36:36]
- Defense Sector Investment: [39:07–45:49]
- What’s Next in the WBD Bidding War: [46:12–48:21]
Conclusion
This episode offers a sweeping, in-depth look at the shifting tectonics within tech and media—zeroing in on the headline-making Paramount versus Netflix faceoff for Warner Bros. Discovery, the future of streaming, US tech regulatory policy, and the broader implications for American innovation and national security. The interplay of foreign money, political oversight, and rampant industry consolidation signal a pivotal era for global entertainment and technology.