WSJ What’s News (PM Edition)
Episode: Paramount Goes Hostile in Fight for Warner Bros. Discovery
Date: December 8, 2025
Host: Alex Osoleff
Episode Overview
This episode delivers a concise rundown of the day’s biggest business and political headlines. The central theme is Paramount’s dramatic hostile takeover bid for Warner Bros. Discovery, challenging an existing merger with Netflix. Other segments include shifts in pharmaceutical sales methods, US-China trade tensions, innovative school district housing projects for teachers, and new insights on 401(k) millionaires. The tone is brisk, authoritative, and focused on practical impacts for listeners.
Key Segments & Insights
1. Paramount’s Hostile Bid for Warner Bros. Discovery
[01:28–02:26]
- Main Development: Paramount launched a $78 billion hostile takeover offer for Warner Bros. Discovery, aiming to override Warner's prior $72 billion merger agreement with Netflix.
- Paramount’s Argument: CEO David Ellison claims the deal would create a formidable competitor for streaming giants and is more likely to win regulatory approval.
- Quote:
“What we’re creating by putting these two companies together is a real competitor to Netflix, a real competitor to Amazon, a real competitor to Disney.”
—David Ellison, Paramount CEO [01:52]
- Quote:
- Reactions:
- Netflix: “Paramount’s bid was expected,” but they remain confident in their own deal closing.
- Warner Bros. Discovery: Recommends shareholders support the Netflix agreement but will respond officially within 10 business days.
2. Pharmaceutical Companies Selling Direct to Patients
[02:26–05:01]
Guest: Peter Loftus, WSJ Pharma Reporter
- Trend: Drug manufacturers are bypassing pharmacy benefit managers (PBMs), selling directly to consumers through dedicated websites.
- How it Works:
- Patients can visit a manufacturer’s website, either upload prescriptions or consult with provided doctors, and order discounted medication.
- Example: Popular for weight-loss drugs, manufacturers offer prices as low as $150–$200/month compared to uninsured list prices over $1,000.
- Quote:
“There is a segment of patients that just either doesn’t have insurance or doesn’t have great insurance... Sometimes it’s to their advantage for the companies to offer those patients a significant cash discount.”
—Peter Loftus [03:14]
- Winners: Patients with limited/no insurance benefit from lower costs; manufacturers expand direct sales.
- Losers: PBMs like CVS Caremark, Express Scripts, and OptumRx who risk losing negotiating power and influence over pricing.
- PBM industry defends its role: lower net pricing & extra patient safety.
- Quote:
“The drug companies say that that can really distort the pricing. And so, by going directly to the patient, that’s a way to get around the middlemen and just offer a discounted price. That is what it is.”
—Peter Loftus [04:06]
3. Market and Trade Updates
[05:08–06:21]
- Markets:
- Major US indexes closed slightly lower; Dow down around 0.5%.
- U.S.–China Trade:
- China’s 2025 trade surplus in goods exceeds $1 trillion for the first time, maintaining export dominance despite tariffs.
- Tariffs have hurt US agriculture; $12 billion in federal aid announced for US farmers.
- Noteworthy: U.S. soybean exports to China fell to zero earlier in the year before a partial recovery.
4. Supreme Court Case on Presidential Power Over Regulators
[06:40–07:08]
- Supreme Court appears ready to let the president fire the heads of many regulatory agencies, based on arguments around Trump’s dismissal of Rebecca Slaughter from the FTC.
- Expect a ruling by July 2026.
5. Auto Safety Recalls & Unfixed Defects
[07:08–07:49]
- WSJ analysis: About 2.5 million vehicles with recalled airbags (from 2014–2024) remain unrepaired—roughly 1 in 5 affected cars.
- Broader issue: 1 in 3 cars recalled for any reason aren’t fixed.
- Notable: The National Highway Traffic Safety Administration can only issue recalls, not force repairs.
6. Teacher Housing Crisis: School Districts Become Landlords
[07:49–10:59]
Guest: Scott Calvert, WSJ National Affairs Reporter
- Story: Monterey, CA school district spent $35 million on an apartment complex to provide affordable housing for staff.
- Rents are 30% below market rates ($1,500/mo for a one-bedroom).
- Why? Teacher turnover rates approached 20% annually due to high housing costs; solution aims to increase staff stability.
- Quote:
“Having that workforce housing just creates the continuity with teachers because I know there’s... a lot of turnover. People stay here for year, people leave. And having that stability helps not just the people working, but also kids like learning.”
—Teacher Albert Platt via Scott Calvert [09:13]
- Quote:
- Context:
- Similar housing projects across California—1,000 teacher units built; 1,800 more planned.
- Districts using bond issues (e.g., $340 million in Monterey) to finance these projects.
- Drawbacks/Concerns:
- Housing is conditional on employment.
- Privacy concerns (“living among colleagues”).
- Teachers’ unions want more measures (mainly higher salaries), not just housing.
7. The Rise of 401(k) Millionaires
[11:07–12:15]
- Record number of Americans have become “401(k) millionaires” due to robust stock gains and steady saving.
- 654,000 such accounts at Fidelity as of Q3 2025.
- Most are “moderate millionaires”—wealthy on paper, but with middle class lifestyles.
- Term: “psychological wealth threshold” cited by UBS Global Wealth Management.
Notable Quotes
- David Ellison, Paramount CEO:
“There will be no more competition in Hollywood if this [Netflix–Warner] deal is allowed to come to pass.” [01:52]
- Peter Loftus, on direct pharma sales:
“...It’s better than not getting any business from the patient, essentially.” [03:14]
- Scott Calvert, quoting a Monterey teacher:
“Having that workforce housing just creates the continuity with teachers... having that stability helps not just the people working, but also kids.” [09:13]
Timestamps for Key Segments
- [01:28] Paramount’s Hostile Bid for Warner Bros. Discovery
- [02:26] Pharmaceutical Companies Selling Direct to Patients
- [05:08] Market and Trade Updates
- [06:40] Supreme Court Considers Presidential Power Over Regulators
- [07:08] Unfixed Car Recall Crisis
- [07:49] School Districts as Landlords—Teacher Housing Crisis
- [11:07] 401(k) Millionaires on the Rise
Conclusion
This episode highlights seismic shifts in the media, pharmaceutical, and education sectors, along with developments in trade, regulation, and personal finance. With competitive high-stakes mergers, new business models in healthcare, and bold solutions to the cost-of-living crisis, the WSJ What’s News team delivers a snapshot of the evolving economic and policy landscape—always with practical context and authoritative voices.