Warner Bros Has Words With Paramount & Turning Losses into Tax Advantages

Brew Markets – December 17, 2025

Episode Title: Warner Bros Has Words With Paramount & Turning Losses into Tax Advantages
Host: Ann Berry
Podcast: Brew Markets (Morning Brew)

Overview of Main Theme

This episode dives into major stock market stories making waves:

The heated M&A drama between Warner Bros. Discovery and Paramount Skydance, as Warner's board publicly rebuffs Paramount’s offer and sides with Netflix.
The “study session” on the Coursera-Udemy merger and what this means for the competitive edtech landscape.
An investor-focused explainer on tax loss harvesting with Fidelity’s Josh Krugman, ahead of year-end tax planning.
Market updates including Jabil’s strong AI-driven performance, Medline’s blockbuster IPO, and a check on AI’s market winds following a big Oracle-OpenAI funding story.

Packed with wit, clarity, and practical breakdowns, Ann Berry guides listeners through the day’s must-know stories, market trends, and actionable investor tips.

Key Segments and Insights

1. Warner Bros. vs. Paramount: M&A Drama Unfolds

Starts at 00:14

Main Points:

Warner Bros. Discovery’s board issued a scathing rejection of Paramount Skydance’s acquisition offer, favoring Netflix instead.
The board questioned the legitimacy and enforceability of Paramount’s financing, specifically the Ellison family’s “unknown and opaque revocable trust.”
- Quote: “Paramount Skydance has consistently misled Warner Brothers shareholders that its proposed transaction has a full backstop for the Ellison family. It does not and never has.” (Ann Berry quoting Warner Bros board letter, 01:07)
Even if the money is real, Warner Bros. highlights that liability for a breach is capped at just 7% (~$3B) of the total commitments, far less than the damage such a failed deal could cause.
- Quote: “In the event that this blows up ... that's only a fraction of the $108 billion plus offer and a fraction of what the board would expect would come about as ‘damage to Warner Brothers and its stockholders.’” (01:58)
The offer is called “illusory,” subject to change or termination at any time and not a binding merger agreement.
Board also notes an additional $2.8 billion termination fee payable to Netflix if the deal with Paramount succeeds.
Ann urges listeners to read the full letter and SEC filings, noting interesting details like bidders’ identities, timeline breakdowns, and executive compensation.

Memorable Moment:

Ann, tongue-in-cheek: “If you thought that corporate deal making was boring, this is one example of M & A drama that may change your mind.” (00:44)

Market Impact (02:53):

Netflix shares ended nearly flat.
Paramount Skydance down 4%; market wary about deal prospects.
Warner Bros. Discovery down 2% but has “seen its stock price rocket in the wake of this bidding war.”
Affinity Partners (Jared Kushner’s private equity arm) backed out of the Paramount bid.
Paramount could go hostile by appealing directly to Warner Bros. shareholders.

2. Coursera & Udemy Merge: EdTech Rivals Join Forces

Starts at 06:38

Main Points:

Coursera and Udemy have agreed to merge, creating a $2.5B edtech company, operational by mid-2026.
Coursera shareholders will control 59%, Udemy 41%.
The new firm retains the Coursera name, ticker “COUR,” and Coursera’s leadership (CEO Greg Hart, Chairman Andrew Ng).
Contrasting business models:
- Coursera: Partners with universities and organizations for professional, credentialed courses.
- Udemy: Marketplace for user-generated content—anyone can upload a course.
  - Notable Detail: Udemy had “hundreds of Deep Seq AI courses” uploaded within weeks of launch, highlighting its dynamism (08:22).
- Ann questions the quality/curation issue for users with so much user-generated content.
The deal aims to marry Udemy’s scale with Coursera’s credibility and curation.
Anticipated annual cost synergies: $115M within two years (09:08).
Ann sees the deal as partly defensive: both companies face growing pressure from AI tools and free platforms like YouTube, with struggling competitors (Chegg, Duolingo).
- Chegg shares down 43% this year, 99% in five years; Udemy stock down 35% for the year, Coursera down 5% YTD, 80% since IPO (12:02).

Memorable Quotes:

John (on the changing Edtech landscape): “If you want to learn about something, it's easy to go on YouTube and get a tutorial there. And so I think these higher education online platforms have been suffering for a while now.” (10:07)
Ann (on the merger): “I salute them for acknowledging there's a problem… trying out at least doubling down on scale for a shot at actually turning things around, stronger, perhaps together than they are going to be apart.” (12:18)

Market Reaction:

Udemy shares soared 18% on the announcement (“Udemy shareholders frankly delighted to see an exit path here”).
Coursera up nearly 1%, market “still trying to figure out just how this is going to work out post integration.” (12:18)

3. Jabil’s “Old-School” Manufacturing: Riding the AI Wave

Starts at 13:29

Main Points:

Jabil (Ticker: JBL) is a diversified manufacturer (medical, automotive, data center equipment), founded in 1966; now $25B market cap, 140,000+ employees.
Earnings beat: EPS surpassed expectations by $0.15, revenue up ~19% YoY, now projecting $32B FY2026 revenue (up from $31.3B).
Growth driven by demand from “AI and cloud computing infrastructure customers.”
- Acquisition of Hanley Energy Group ($725M) to bolster data center infrastructure business.
CEO Mike Daster: “Our intelligent infrastructure remains a major growth engine and in that sector alone the net revenue was up 54% year over year.” (15:49)
Jabil focuses on profitable growth, not just topline AI hype; projects Hanley’s annual revenue at ~$400M with mid-to-high teens EBITDA margins.
Diverse product lines: liquid cooling, switches, power management for data centers.
Ann draws parallels to GE Vernova: “Traditional companies now getting a little bit of extra juice from AI optimism.” (17:13)
Jabil shares up nearly 50% YTD.
Interesting angle: Other “AI trade” stocks (like GE Vernova) suffered today due to funding jitters and uncertainty.

4. Tax Loss Harvesting: Year-End Investing Strategy

Starts at 20:17
Guest: Josh Krugman, Head of Brokerage Product Strategy, Fidelity

Main Points:

Tax loss harvesting: Selling positions at a loss to offset capital gains and reduce taxable income.
- Quote: “It is a way to minimize your long term or short term capital gains in your brokerage account…” (20:17)
Key tax rule: You cannot immediately buy back a “substantially similar” security (“wash sale” rules).
While popular in December, automated tools and managed accounts may harvest throughout the year; can be used by investors at all wealth levels.
Fidelity offers digital/automated solutions and self-directed tools for tax loss harvesting.
End-of-year financial planning: Focus first on maximizing tax-advantaged vehicles like 401(k)s, IRAs, 529s (college-saving); harvest losses where appropriate.

Memorable Quote:

Josh Krugman: “It doesn't take a lot of money to get the benefits of tax loss harvesting.” (23:22)

Key Takeaway:

Make a plan, focus on consistent savings and don’t let short-term volatility deter your long-term approach.

5. Quick Market Headlines & IPOs

Starts at 25:55

Main Points:

S&P 500 fell 1.21%.
Medline IPO: Biggest since Rivian, raising $6.25B, $50B+ valuation, stock up nearly 40% on debut (ticker: MDLN).
Private equity (Blackstone, Carlyle, Hellman & Friedman) bought Medline for $30B in 2021, marking a major exit.
Amazon reportedly to invest $10B in OpenAI, using Amazon’s AI chips.
Oracle shares dropped 5% after Blue Owl (private credit) pulled out of a $1B data center funding deal for OpenAI, partially due to debt concerns—a key factor in today's "AI selloff."

Ann’s Perspective:

“I actually welcomed the sign that Blue Owl is showing some caution… showing that there is real diligence and thought going in to stroking those credit checks or not when it comes to these AI investments.” (28:24)

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Highlighted Quote | |---|---|---| | 00:44 | Ann Berry | “If you thought that corporate deal making was boring, this is one example of M & A drama that may change your mind.” | | 01:07 | Ann (quoting) | “Paramount Skydance has consistently misled Warner Brothers shareholders that its proposed transaction has a full backstop for the Ellison family. It does not and never has.” | | 10:07 | John | “If you want to learn about something, it's easy to go on YouTube and get a tutorial there. And so I think these higher education online platforms have been suffering for a while now.” | | 12:18 | Ann Berry | “I salute them for acknowledging there's a problem… doubling down on scale for a shot at actually turning things around, stronger, perhaps together than they are going to be apart.” | | 15:49 | CEO Mike Daster | “Our intelligent infrastructure remains a major growth engine and in that sector alone the net revenue was up 54% year over year.” | | 20:17 | Josh Krugman | “It is a way to minimize your long term or short term capital gains in your brokerage account…” | | 23:22 | Josh Krugman | “It doesn't take a lot of money to get the benefits of tax loss harvesting.” | | 28:24 | Ann Berry | “I actually welcomed the sign that Blue Owl is showing some caution…” |

Timestamps for Major Segments

Warner Bros/Paramount M&A Drama – 00:14 to 05:54
Coursera + Udemy Merger Analysis – 06:38 to 12:18
Jabil & the ‘AI Dividend’ – 13:29 to 17:39
Tax Loss Harvesting w/ Fidelity – 20:17 to 25:43
Market Recap & Medline IPO – 25:55 to 28:57

Podcast Tone & Style

Ann Berry’s sharp, informative, and occasionally playful tone keeps the episode lively while delivering concise breakdowns on complex market news. Co-host John brings data points and context, while guest expert Josh Krugman adds straightforward, actionable advice for all levels of investors.

Summary Takeaways

Bidding wars and public boardroom brawls are heating up around Warner Bros. Discovery as the industry restructures.
The edtech space is consolidating rapidly to meet the dual challenges of scaling content and surviving the AI-driven disruption.
Traditional manufacturing giants like Jabil are getting a second wind from the AI infrastructure rush—profitability matters as much as topline AI stories.
Year-end is a critical moment for tax optimization; tax loss harvesting is practical for investors of all sizes, especially with modern tools.
AI investments are under scrutiny, with financial markets looking for real diligence in capital expenditures, and guardrails to keep the “AI bubble” at bay.

For full letters, topical deep-dives, and more, Ann Berry suggests checking the investor relations sections, reading SEC filings, and even poking around dedicated deal battle websites (like www.strongerhollywood.com).

Brew Markets – December 17, 2025

Episode Title: Warner Bros Has Words With Paramount & Turning Losses into Tax Advantages
Host: Ann Berry
Podcast: Brew Markets (Morning Brew)

Overview of Main Theme

This episode dives into major stock market stories making waves:

The heated M&A drama between Warner Bros. Discovery and Paramount Skydance, as Warner's board publicly rebuffs Paramount’s offer and sides with Netflix.
The “study session” on the Coursera-Udemy merger and what this means for the competitive edtech landscape.
An investor-focused explainer on tax loss harvesting with Fidelity’s Josh Krugman, ahead of year-end tax planning.
Market updates including Jabil’s strong AI-driven performance, Medline’s blockbuster IPO, and a check on AI’s market winds following a big Oracle-OpenAI funding story.

Packed with wit, clarity, and practical breakdowns, Ann Berry guides listeners through the day’s must-know stories, market trends, and actionable investor tips.

Key Segments and Insights

1. Warner Bros. vs. Paramount: M&A Drama Unfolds

Starts at 00:14

Main Points:

Warner Bros. Discovery’s board issued a scathing rejection of Paramount Skydance’s acquisition offer, favoring Netflix instead.
The board questioned the legitimacy and enforceability of Paramount’s financing, specifically the Ellison family’s “unknown and opaque revocable trust.”
- Quote: “Paramount Skydance has consistently misled Warner Brothers shareholders that its proposed transaction has a full backstop for the Ellison family. It does not and never has.” (Ann Berry quoting Warner Bros board letter, 01:07)
Even if the money is real, Warner Bros. highlights that liability for a breach is capped at just 7% (~$3B) of the total commitments, far less than the damage such a failed deal could cause.
- Quote: “In the event that this blows up ... that's only a fraction of the $108 billion plus offer and a fraction of what the board would expect would come about as ‘damage to Warner Brothers and its stockholders.’” (01:58)
The offer is called “illusory,” subject to change or termination at any time and not a binding merger agreement.
Board also notes an additional $2.8 billion termination fee payable to Netflix if the deal with Paramount succeeds.
Ann urges listeners to read the full letter and SEC filings, noting interesting details like bidders’ identities, timeline breakdowns, and executive compensation.

Memorable Moment:

Ann, tongue-in-cheek: “If you thought that corporate deal making was boring, this is one example of M & A drama that may change your mind.” (00:44)

Market Impact (02:53):

Netflix shares ended nearly flat.
Paramount Skydance down 4%; market wary about deal prospects.
Warner Bros. Discovery down 2% but has “seen its stock price rocket in the wake of this bidding war.”
Affinity Partners (Jared Kushner’s private equity arm) backed out of the Paramount bid.
Paramount could go hostile by appealing directly to Warner Bros. shareholders.

2. Coursera & Udemy Merge: EdTech Rivals Join Forces

Starts at 06:38

Main Points:

Coursera and Udemy have agreed to merge, creating a $2.5B edtech company, operational by mid-2026.
Coursera shareholders will control 59%, Udemy 41%.
The new firm retains the Coursera name, ticker “COUR,” and Coursera’s leadership (CEO Greg Hart, Chairman Andrew Ng).
Contrasting business models:
- Coursera: Partners with universities and organizations for professional, credentialed courses.
- Udemy: Marketplace for user-generated content—anyone can upload a course.
  - Notable Detail: Udemy had “hundreds of Deep Seq AI courses” uploaded within weeks of launch, highlighting its dynamism (08:22).
- Ann questions the quality/curation issue for users with so much user-generated content.
The deal aims to marry Udemy’s scale with Coursera’s credibility and curation.
Anticipated annual cost synergies: $115M within two years (09:08).
Ann sees the deal as partly defensive: both companies face growing pressure from AI tools and free platforms like YouTube, with struggling competitors (Chegg, Duolingo).
- Chegg shares down 43% this year, 99% in five years; Udemy stock down 35% for the year, Coursera down 5% YTD, 80% since IPO (12:02).

Memorable Quotes:

John (on the changing Edtech landscape): “If you want to learn about something, it's easy to go on YouTube and get a tutorial there. And so I think these higher education online platforms have been suffering for a while now.” (10:07)
Ann (on the merger): “I salute them for acknowledging there's a problem… trying out at least doubling down on scale for a shot at actually turning things around, stronger, perhaps together than they are going to be apart.” (12:18)

Market Reaction:

Udemy shares soared 18% on the announcement (“Udemy shareholders frankly delighted to see an exit path here”).
Coursera up nearly 1%, market “still trying to figure out just how this is going to work out post integration.” (12:18)

3. Jabil’s “Old-School” Manufacturing: Riding the AI Wave

Starts at 13:29

Main Points:

Jabil (Ticker: JBL) is a diversified manufacturer (medical, automotive, data center equipment), founded in 1966; now $25B market cap, 140,000+ employees.
Earnings beat: EPS surpassed expectations by $0.15, revenue up ~19% YoY, now projecting $32B FY2026 revenue (up from $31.3B).
Growth driven by demand from “AI and cloud computing infrastructure customers.”
- Acquisition of Hanley Energy Group ($725M) to bolster data center infrastructure business.
CEO Mike Daster: “Our intelligent infrastructure remains a major growth engine and in that sector alone the net revenue was up 54% year over year.” (15:49)
Jabil focuses on profitable growth, not just topline AI hype; projects Hanley’s annual revenue at ~$400M with mid-to-high teens EBITDA margins.
Diverse product lines: liquid cooling, switches, power management for data centers.
Ann draws parallels to GE Vernova: “Traditional companies now getting a little bit of extra juice from AI optimism.” (17:13)
Jabil shares up nearly 50% YTD.
Interesting angle: Other “AI trade” stocks (like GE Vernova) suffered today due to funding jitters and uncertainty.

4. Tax Loss Harvesting: Year-End Investing Strategy

Starts at 20:17
Guest: Josh Krugman, Head of Brokerage Product Strategy, Fidelity

Main Points:

Tax loss harvesting: Selling positions at a loss to offset capital gains and reduce taxable income.
- Quote: “It is a way to minimize your long term or short term capital gains in your brokerage account…” (20:17)
Key tax rule: You cannot immediately buy back a “substantially similar” security (“wash sale” rules).
While popular in December, automated tools and managed accounts may harvest throughout the year; can be used by investors at all wealth levels.
Fidelity offers digital/automated solutions and self-directed tools for tax loss harvesting.
End-of-year financial planning: Focus first on maximizing tax-advantaged vehicles like 401(k)s, IRAs, 529s (college-saving); harvest losses where appropriate.

Memorable Quote:

Josh Krugman: “It doesn't take a lot of money to get the benefits of tax loss harvesting.” (23:22)

Key Takeaway:

Make a plan, focus on consistent savings and don’t let short-term volatility deter your long-term approach.

5. Quick Market Headlines & IPOs

Starts at 25:55

Main Points:

S&P 500 fell 1.21%.
Medline IPO: Biggest since Rivian, raising $6.25B, $50B+ valuation, stock up nearly 40% on debut (ticker: MDLN).
Private equity (Blackstone, Carlyle, Hellman & Friedman) bought Medline for $30B in 2021, marking a major exit.
Amazon reportedly to invest $10B in OpenAI, using Amazon’s AI chips.
Oracle shares dropped 5% after Blue Owl (private credit) pulled out of a $1B data center funding deal for OpenAI, partially due to debt concerns—a key factor in today's "AI selloff."

Ann’s Perspective:

“I actually welcomed the sign that Blue Owl is showing some caution… showing that there is real diligence and thought going in to stroking those credit checks or not when it comes to these AI investments.” (28:24)

Notable Quotes & Memorable Moments

Timestamps for Major Segments

Warner Bros/Paramount M&A Drama – 00:14 to 05:54
Coursera + Udemy Merger Analysis – 06:38 to 12:18
Jabil & the ‘AI Dividend’ – 13:29 to 17:39
Tax Loss Harvesting w/ Fidelity – 20:17 to 25:43
Market Recap & Medline IPO – 25:55 to 28:57

Podcast Tone & Style

Summary Takeaways

Bidding wars and public boardroom brawls are heating up around Warner Bros. Discovery as the industry restructures.
The edtech space is consolidating rapidly to meet the dual challenges of scaling content and surviving the AI-driven disruption.
Traditional manufacturing giants like Jabil are getting a second wind from the AI infrastructure rush—profitability matters as much as topline AI stories.
Year-end is a critical moment for tax optimization; tax loss harvesting is practical for investors of all sizes, especially with modern tools.
AI investments are under scrutiny, with financial markets looking for real diligence in capital expenditures, and guardrails to keep the “AI bubble” at bay.

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Summary

Brew Markets – December 17, 2025

Overview of Main Theme

Key Segments and Insights

1. Warner Bros. vs. Paramount: M&A Drama Unfolds

Main Points:

Memorable Moment:

Market Impact (02:53):

2. Coursera & Udemy Merge: EdTech Rivals Join Forces

Main Points:

Memorable Quotes:

Market Reaction:

3. Jabil’s “Old-School” Manufacturing: Riding the AI Wave

Main Points:

4. Tax Loss Harvesting: Year-End Investing Strategy

Main Points:

Memorable Quote:

Key Takeaway:

5. Quick Market Headlines & IPOs

Main Points:

Ann’s Perspective:

Notable Quotes & Memorable Moments

Timestamps for Major Segments

Podcast Tone & Style

Summary Takeaways

Summary

Brew Markets – December 17, 2025

Overview of Main Theme

Key Segments and Insights

1. Warner Bros. vs. Paramount: M&A Drama Unfolds

Main Points:

Memorable Moment:

Market Impact (02:53):

2. Coursera & Udemy Merge: EdTech Rivals Join Forces

Main Points:

Memorable Quotes:

Market Reaction:

3. Jabil’s “Old-School” Manufacturing: Riding the AI Wave

Main Points:

4. Tax Loss Harvesting: Year-End Investing Strategy

Main Points:

Memorable Quote:

Key Takeaway:

5. Quick Market Headlines & IPOs

Main Points:

Ann’s Perspective:

Notable Quotes & Memorable Moments

Timestamps for Major Segments

Podcast Tone & Style

Summary Takeaways