Brew Markets – “Eli Lilly Joins an Exclusive Club & Does Netflix Really Want Warner Bros?”

Date: November 24, 2025
Host: Ann Berry
Producer/Co-host: John Croteau

Episode Overview

Ann Berry and producer John Croteau break down two of the biggest stories in markets today: pharmaceutical giant Eli Lilly joining the “Trillion Dollar Club,” and the heated battle among media giants (including Netflix) to potentially acquire Warner Brothers Discovery. The episode dives deep into the makeup of the world's largest companies, the strategic calculus behind mega-mergers in media, and how these developments might impact shareholders, the entertainment industry, and everyday investors. The hosts also share insights into the interplay of business, culture, and market forces, coupling hard data with behind-the-scenes expertise.

Key Discussion Points & Insights

1. The Trillion Dollar Club: Eli Lilly’s Historic Milestone

[00:53–04:37]

• Eli Lilly becomes the first healthcare company to reach a $1 trillion market cap (and still trades above it as of this episode).
• The “Trillion Dollar Club” is largely dominated by tech companies:
  • Apple: First US company to cross $1 trillion (2018), now $4 trillion.
  • Tech and Semiconductors: Nvidia, Broadcom, TSMC are also members.
  • Internet Utilities: Microsoft ($3.5T), Alphabet/Google ($3.8T), Amazon ($2.4T, sustained since 2020), Meta, Tesla.
  • Industrial Giants: State-owned Saudi Aramco and recent addition Berkshire Hathaway.
• Potential Contenders: Walmart is close but hasn’t crossed; historical “members” (when adjusting for inflation) include Standard Oil and the Dutch East India Company.
• Memorable Quote:

  “The story of the trillion dollar company is overwhelmingly the story of the most successful of the big tech names.”
  — Ann Berry (01:21)

• Perspective: The club is a mix of American and global business icons. Traditional companies, though fewer, are still a major force.

2. Warner Brothers Discovery Sale: Who Wants It, and Why?

[05:07–15:36]

Background and Bidders

• Warner Brothers Discovery is up for sale after a turbulent run (debt, poor performance).
• Major bidders: Netflix, Comcast (NBCUniversal), and Paramount/Skydance.
  • Netflix: ~$450B market cap
  • Comcast: ~$100B
  • Paramount: ~$17B (backs Skydance, David Ellison)
  • Warner Bros. Discovery: ~$56B
• Comparison:
  • Disney’s not bidding but clocks in at $185B market cap.
  • “I’ve actually not seen such a range in potential bidder sizes like this before, to be honest with you.” – Ann Berry (08:19)

Netflix’s Possible Moves

• Netflix has the cash and reach, could stream Warner’s deep IP catalog (Harry Potter, Friends, DC Comics).
• Concern in Hollywood: Direct-to-streaming could hurt theaters (stars often lose out on box office-linked bonuses).
  • Quote:

    “A lot of these artists and actors have compensation built into the back end where they can get a percentage of box office take. And so when there's no box office take… it really is a different agreement.”
    — John Croteau (09:18)

• Netflix claims it will honor existing contracts for theatrical releases, but industry skeptics remain unconvinced this signals a true commitment to theaters long-term.

Strategic Speculation

• Some analysts think Netflix’s bid might be tactical—driving up the price for rivals, not a genuine intent to buy.
  • Quote:

    “Some analysts believe that Netflix actually might be doing something extremely Machiavellian here and that this is all tactics and this is all pun intended theater.”
    — Ann Berry (10:46)

Comcast’s Perspective

• Comcast would likely merge Warner’s studio and streaming with NBCUniversal (bolstering Peacock, adding to Universal’s IP and theme parks).
• Recent leaks suggest Comcast wants only studio and streaming assets, moving away from cable.

Paramount/Skydance’s Bid

• Paramount bid multiple times, sparking the competitive process.
• Questions about how such a small player could afford the deal—answer: Skydance backed by David Ellison (and the Oracle/Ellison family fortune), possibly smoothing regulatory hurdles via connections.
  • Quote:

    "It’s the financial backing of Oracle’s Ellison family … Larry Ellison also has a very good relationship with President Trump, as we know, could help with any regulatory hurdles…"
    — Ann Berry (13:24)

Regulatory & Cultural Factors

• Comcast seen as least politically favored under Trump, due to NBC/MSNBC relationship.
• Paramount/Skydance perhaps culturally and politically better positioned.

Valuation & Board Dynamics

• Recent Paramount offer: $23.50/share (WBD now at $24/share), but CEO wants $30/share.
• Ann Berry on board rooms:
  • Boards must maximize shareholder value but weigh risk of deals falling through (distractions, lost operations focus, cost).
  • Slicing up the company could yield higher returns but increases dealmaking risk and potential disruption, possibly lowering overall value if pieces don’t all sell.
    • Quote:

      “If you take a bet that you’re going to accept an offer at a sky high valuation, but there’s a real chance it doesn’t go ahead, it’s really disruptive.”
      — Ann Berry (15:39–17:45)

  • The process is time- and energy-consuming; everyone from top execs to “armies of people” become involved.

Market Reaction

• WBD stock up 117% YTD on M&A rumors; rest of media sector lags or soars based on merger prospects.
• Netflix: +17% YTD; Paramount/Skydance: +47%.

3. Industry Insider Reflections: Producer John’s Hollywood Roots

[19:31–21:00]

• John Croteau’s background: Late Night with Conan O’Brien, moved from Universal to Warner Brothers lots in LA, worked in the heart of Hollywood for 13 years.
• Personal view: Paramount/Skydance could be best for “Hollywood” (jobs, culture, industry tradition); Ellison is passionate about movies and LA.
  • Quote:

    “The Paramount bid might be best for Hollywood. It might save the most jobs. It might mean more movies being released. David Ellison really is into movies, and about Hollywood and Los Angeles.”
    — John Croteau (20:43)

• Ann notes family/private capital gives more leeway for emotional, legacy-driven decisions than publicly-traded corporates beholden to shareholders.

4. Ann Berry on TV Appearances and Market Communication

[21:38–26:06]

• Ann shares her experience as a frequent business-TV guest (Fox, Bloomberg, BBC, etc).
• TV is unpredictable—sometimes goes in cold, sometimes called for specific expertise.
• Her job (on TV or podcasting): decode financial jargon and business news for everyone, demystifying finance.
  • Quote:

    “Very little of this is rocket science, and I think we’re just made to feel like it’s this mysterious thing, this sort of strange subject matter that only really expert people can unpack. And I actually truly, truly believe that pretty much anyone can unpack this.”
    — Ann Berry (25:10)

5. Quick Market Recap & Final Thoughts

[26:17–28:28]

• Markets: Major tech rebound; S&P 500 up 1.5%, Nasdaq rallies, Dow up modestly.
• Novo Nordisk plunges 12% after their oral Semaglutide (weight loss drug) fails Alzheimer’s trial.
  • Quote:

    “Really disappointing news, not just from a market perspective but from so many people, so many families are affected by Alzheimer’s.”
    — Ann Berry (26:51)

• Gemini (Google’s AI model): Ann highlights how Alphabet’s new LLM could challenge OpenAI, with mysterious but possibly significant financial implications for Microsoft, Intuit, and others who’ve heavily invested in OpenAI integrations.
  • Quote:

    “I could not help but think, if it turns out that Gemini is so much better … what does it mean for all these companies who've already paid out a whole bunch of money to OpenAI, or signed up to do so, to integrate ChatGPT when they now know it may not be the superior product?”
    — Ann Berry (27:30)

Notable Quotes & Memorable Moments

• Eli Lilly making history:

  “Eli Lilly became the first health care company to join the club on Friday and has been trading there again today. A major moment for the pharmaceutical giant…”
  — Ann Berry (00:58)

• On Netflix’s real intentions:

  “Some analysts believe that Netflix actually might be doing something extremely Machiavellian here and that this is all tactics…”
  — Ann Berry (10:46)

• Paramount as the ‘Hollywood’ choice:

  “It might save the most jobs. It might mean more movies being released. There’s been talk that David Ellison really is into movies, that he cares about movies and about Hollywood and Los Angeles.”
  — John Croteau (20:43)

• Market communication philosophy:

  “It’s my job as a communicator ... to explain it. And if someone still can’t understand it, either I’m doing a bad job or something is truly inexplicable.”
  — Ann Berry (25:10)

Timestamps for Key Segments

• The Trillion Dollar Club & Eli Lilly: 00:53–04:37
• Warner Bros Discovery Bids Overview: 05:07–09:51
• Netflix’s Theatrical Dilemma & Tactics: 09:16–11:27
• Comcast & Paramount/Skydance Bid Details: 11:28–15:16
• Boardroom Decision-Making & Deal Risks: 15:39–18:10
• Insider Reflections (John Croteau): 19:31–21:00
• Ann Berry on Media & Communication: 21:38–26:06
• Market Recap & Gemini AI Note: 26:17–28:28

Overall Tone & Takeaways

Conversational, energetic, and filled with real-world anecdotes, the episode blends industry expertise with accessible explanations. Ann Berry’s mission is to make complex business news decipherable, while John’s Hollywood experiences bring the entertainment merger drama to life. The show balances numbers and narrative, letting listeners understand both market stakes and human consequences.