Netflix Paramount - Acquisition war - What You need to know. Netflix is selling off because it announced a massive, high‑risk acquisition of major Warner Bros. Discovery assets — and the market hates the price, the leverage, and the regulatory risk.
The bid is in the range of $72-$82 Billion.
Trump tweeted last night putting the deal under scrutiny.
This tweet comes on the back of Paramount Skydance announcing a hostile take over bid $108B of warner bros discovery. Trumps son in law Jared Kushner hold private equity in Para and would benefit from the takeover.
Netflix is sitting pretty as the stock has sold off in anticipation of higher cap ex. If the deal doesn't go through it will likely rebound.
Netflix wont have to pay the 5.8 Billion break up fee if WBD board votes down their deal. In fact Netflix will receive $2-$3 Billion.
Warnerbros
Netflix Buys Warner Bros in Historic $82.7B TakeoverNetflix’s $82.7B Warner Bros Discovery Takeover Signals a Historic Power Shift in Hollywood
Netflix (NASDAQ: NFLX) has officially struck a landmark deal to acquire the film and streaming divisions of Warner Bros. Discovery (WBD) in a transaction valued at $82.7 billion, including debt — the biggest entertainment acquisition in modern history. The deal, approved unanimously by both boards, will hand Netflix ownership of HBO, Warner Bros studios, HBO Max’s extensive library, and key franchises like Harry Potter, Game of Thrones, and DC. The agreement excludes cable channels such as CNN and TNT, which WBD will spin off into a separate entity called Discovery Global before the sale is completed.
Netflix co-CEO Ted Sarandos emphasized that the merger is a “rare opportunity” to reshape content dominance for decades, projecting $2–$3 billion in synergies through operational efficiencies. HBO’s premium brand will remain intact, although Netflix hinted at future integration strategies. Meanwhile, Warner Bros executives noted that joining forces with Netflix ensures the industry’s most compelling storytelling remains globally accessible.
However, the acquisition is expected to face significant regulatory scrutiny. Analysts warn the merger could reduce industry-wide film and TV output, pressure cinemas, and eventually raise subscription costs for consumers. Despite these concerns, Netflix remains confident the deal will clear regulatory hurdles within 18 months.
Technical Outlook
NETFLIX is currently trading near $100, sitting directly on a long-term ascending trendline that has acted as a major support for over a year. Price has retraced sharply from the $134 high and is now testing this structural trendline along with the 9-SMA overhead. Two key scenarios emerge:
• Bullish case: A bounce from $100–$103 could trigger a recovery back toward $120–$134, resuming the broader uptrend.
• Bearish case: A clean break below the trendline opens a drop toward the $82–$88 demand zone, where heavy accumulation previously formed.
RSI remains weak, suggesting momentum favors sellers until a strong reversal candle forms.
NETFLIX ($NFLX): Key Technical Zone With Strong ConfluenceNETFLIX ( NASDAQ:NFLX ): Key Technical Zone With Strong Confluence
Netflix has retraced to a notable support area after reaching an all-time high on June 30th, 2025. The current structure suggests a potential continuation of the long-term bullish trend, supported by technical and fundamental developments.
Why This Zone Matters
The current price region aligns with multiple significant technical factors:
1. Ascending Trendline Support
This trendline originated in mid-October 2023 and has repeatedly acted as a strong support throughout the uptrend.
2. $100 Psychological Price Level
Round numbers often serve as key decision zones for market participants, influencing order flow and trader sentiment.
3. Fibonacci 61.8% Retracement Zone
This level aligns closely with the trendline and psychological level, adding strength to the support.
4. Multi-Factor Confluence
The combination of the trendline, Fibonacci level, and psychological support creates a high-value technical confluence area, often associated with trend continuation or major reversals.
Market Catalyst
Recent reports of Netflix acquiring Warner Bros. Discovery add a potential fundamental driver supporting bullish momentum.
Trade Plan
Entry $100
Take Profit 1 $126
Take Profit 2 $133
Stop Loss $92
Risk-to-Reward (TP1) 1:3.3
Risk-to-Reward (TP2) 1:4
This trade plan is based on the TA that price respects the current support confluence and resumes upward momentum.
Trade with care. Please like, share your thoughts, and kindly follow me.
Breaking: Netflix to Acquire Warner Bros Inc (WBD) is up 3.7%In a shocking turn of event, Netflix is set to acquire Warner Bros Inc. (WBD).
Netflix announced that it will acquire the HBO Max streaming service as well as the Warner Bros. film studio from Warner Bros. Discovery. The deal values the company at $27.75 per share, which implies a $72 billion equity valuation for the assets. The company will also assume $10.7 billion in net debt on Warner Bros. Discovery's balance sheet.
The acquisition is a cash-and-stock deal. Warner Bros. Discovery shareholders will receive $23.50 in cash for each share they own, plus $4.50 in Netflix stock.
Netflix investors should be aware that the company is financing this deal primarily with debt. In addition to the $10.7 billion in net debt the acquired company brings, Netflix is taking on an additional $50 billion in debt to fund the purchase.
Technical Outlook
as of the time of writing, NASDAQ:WBD is up 3.44% breaking out of a bullish symmetrical triangle as the stock eyes the $50 resistant zone. However, with the RSI at 74 possible drawback might occur before the leap.
About WBD
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market
Warner Bros. Discovery Partners With Charter CommunicationsWarner Bros. Discovery Inc. (NASDAQ: NASDAQ:WBD ) and Charter Communications Inc. ( NASDAQ:CHTR ) have unveiled a groundbreaking, multi-year distribution partnership that is set to reshape the future of video. This strategic alliance promises to revolutionize how content is delivered to customers, integrating linear video and direct-to-consumer streaming services. With this early renewal, the two giants are positioning themselves to deliver more value and flexibility in video bundles, catering to evolving viewer preferences and potentially driving significant growth.
A Strategic Partnership for the Future
The newly announced partnership between Warner Bros. Discovery and Charter Communications is a strategic move that seeks to align with changing consumer habits, particularly the growing demand for streaming services. This partnership expands the distribution of Warner Bros. Discovery's Max (Ad Lite) service, which includes HBO, Discovery+, and other premium content, to Spectrum’s millions of Select customers at no extra cost. This addition, valued at nearly $60 per month, is expected to significantly enhance Spectrum’s bundle proposition, which already includes popular streaming platforms like Disney+, ESPN+, Paramount+, and AMC+.
David Zaslav, President and CEO of Warner Bros. Discovery, emphasized the value of their linear content and the significant investments in premium programming, sports, and news. This agreement not only extends Spectrum's carriage of Warner Bros. Discovery's linear network portfolio, including TNT, CNN, Food Network, HGTV, and more, but also positions Max as a preferred partner for marketing and selling direct-to-consumer (DTC) apps and bundles to broadband subscribers.
Charter’s President and CEO, Chris Winfrey, highlighted the evolution of the linear and broadband video distribution model, noting that this partnership supports Spectrum’s efforts to provide flexible packages that cater to a variety of customer needs. Spectrum’s DTC distribution plan, set to fully roll out in 2025, is expected to boost the reach of Warner Bros. Discovery's premium content across its vast customer base.
The partnership comes as a timely boost for Warner Bros. Discovery, which has faced challenges with its traditional TV business due to ongoing cord-cutting and a slow recovery in the advertising market. Despite these challenges, this strategic agreement reflects the company’s adaptability and commitment to leveraging new opportunities in the streaming space.
Technical Outlook
Technically, Warner Bros. Discovery's stock ( NASDAQ:WBD ) has seen a substantial increase, rising 8.43% as of the latest trading session. This uptick is significant, especially considering the stock has been in a prolonged downtrend for much of the year. The recent gains have been driven by investor optimism surrounding the new partnership, which is seen as a pivotal move that could enhance Warner Bros. Discovery's market position.
Currently, WBD’s stock holds a Relative Strength Index (RSI) of 44.28, indicating that the stock is in neutral territory but poised for further growth as buying momentum builds. The RSI value, nearing the 50 mark, suggests that the stock is transitioning out of oversold conditions, potentially signaling the beginning of a new upward trend. If the stock continues to gain traction, it could break key resistance levels, further bolstering investor confidence.
The early renewal of the multi-year deal with Charter Communications has already had a positive impact on the stock’s performance. Warner Bros. Discovery's ability to secure distribution for Max and Discovery+ without additional cost to customers enhances its competitive edge against rivals. Moreover, the broader inclusion of these streaming services in Spectrum’s bundle could attract new subscribers, increase viewer engagement, and ultimately contribute to revenue growth.
The Road Ahead: Will Warner Bros. Discovery Sustain Its Momentum?
The partnership with Charter Communications represents a significant step forward for Warner Bros. Discovery as it navigates the evolving media landscape. By integrating traditional linear TV with cutting-edge streaming services, the company is not only adapting to current market trends but also setting a new standard for value and flexibility in video content distribution.
From a technical perspective, the recent positive movement in WBD stock reflects growing market confidence in the company's strategic direction. With a strong lineup of content, innovative partnerships, and a focus on consumer-friendly bundle offerings, Warner Bros. Discovery is well-positioned to capitalize on future opportunities.
However, challenges remain, particularly in the highly competitive streaming market where rivals like Disney, Netflix, and Paramount are also vying for market share. Warner Bros. Discovery will need to continue innovating and expanding its content offerings to maintain its momentum.
Overall, the early renewal agreement with Charter Communications has provided a much-needed boost to Warner Bros. Discovery’s outlook, both fundamentally and technically. Investors will be closely watching how this partnership evolves and its impact on Warner Bros. Discovery's bottom line in the coming quarters. If the company can successfully leverage this agreement to drive growth, it could mark a turning point for WBD, setting the stage for a brighter future in the ever-evolving world of media and entertainment.
Warner Bros. Discovery Stock Dips 12% on $10 Bln Quarterly LossKey Takeaways:
- Warner Bros. Discovery ( NASDAQ:WBD ) shares plunged sharply after announcing a staggering $10 billion loss for Q2.
- The loss was largely driven by a $9.1 billion write-down in the value of its cable networks, such as CNN and TNT, as they struggle against the rise of streaming giants like Netflix.
- Revenue missed analysts' expectations, falling to $9.71 billion from $10.36 billion a year earlier.
Warner Bros. Discovery's stock took a nosedive, losing over 10% in value after the entertainment conglomerate reported a nearly $10 billion loss for the second quarter. This development has sent shockwaves through the industry, highlighting the growing challenges faced by traditional media companies in an increasingly digital landscape.
A Massive Write-Down and Revenue Misses
The heart of the issue lies in a substantial $9.1 billion non-cash goodwill impairment charge tied to the company's cable networks. This write-down reflects the diminishing value of legacy television channels like CNN and TNT, which have been struggling to maintain relevance in an era dominated by streaming services. As Netflix and other platforms continue to capture viewers' attention, traditional cable networks are facing an existential crisis.
Warner Bros. Discovery's Q2 performance also disappointed on the revenue front, generating $9.71 billion, down from $10.36 billion in the same period last year. Analysts had hoped for a more modest decline, with predictions hovering around $10.17 billion. The company's widening loss, up from $1.24 billion a year ago to $9.99 billion, underscores the gravity of its current predicament.
Cord-Cutting and Competitive Pressure
The decline of cable networks isn't unique to Warner Bros. Discovery. The entire industry is grappling with the rapid pace of cord-cutting, as more consumers ditch traditional cable subscriptions in favor of streaming alternatives. Disney, for example, recently reported a 7% year-over-year decline in revenue from its linear TV networks, despite profitable streaming ventures like Disney+.
The challenges for Warner Bros. Discovery ( NASDAQ:WBD ) extend beyond just declining viewership. The company's TNT Sports division recently lost a high-profile bidding war for an 11-year NBA media rights deal, which could further strain its revenue streams moving forward.
A Company in Transition
Warner Bros. Discovery was born out of the 2022 merger between WarnerMedia and Discovery, a move that was supposed to create a powerhouse in the media landscape. However, two years into its existence, the company finds itself in the throes of a difficult transition. CEO David Zaslav acknowledged the hurdles in an earnings call, emphasizing that while there have been notable progress points, the company is still grappling with "tough challenges."
One of the major issues is the difference between the market capitalization and book value of the company, which triggered the massive write-down. This discrepancy underscores the market's skepticism about the future value of traditional media assets in a world increasingly dominated by digital content.
Looking Ahead
With its stock down nearly 40% this year, Warner Bros. Discovery is at a crossroads. The company must find a way to navigate the shifting media landscape, where streaming reigns supreme and legacy media faces mounting pressure. The Q2 results serve as a stark reminder that the road ahead is fraught with difficulties, but they also present an opportunity for the company to innovate and adapt.
Technical Outlook
Since the onset of the first quarter of 2022, Warner Bros Discovery stock (NASDAQ: NASDAQ:WBD ) has exhibited a consistent pattern of descending wedge formations, subsequently followed by a phase of consolidation. The daily price chart reveals a Relative Strength Index (RSI) of 32.99, indicative of an oversold market position. Notably, Warner Bros Discovery stock (NASDAQ: NASDAQ:WBD ) has maintained a prolonged oversold status, leading to a substantial 40% decline in its valuation since the commencement of this year.
For now, investors are left to wonder whether Warner Bros. Discovery can successfully reinvent itself or if it will continue to struggle in the face of relentless competition from streaming giants. As the company continues its long-term transition, the future remains uncertain, but one thing is clear: the media industry is changing, and Warner Bros. Discovery must change with it.
Despite Growth in Streaming, Warner Bros. Misses Q1 EstimatesWarner Bros. Discovery ( NASDAQ:WBD ) reported first-quarter results that missed analyst expectations on both the top and bottom lines, despite strength in its streaming unit. The company's stock fell nearly 4% in premarket trading. The company, which owns streaming service Max, a portfolio of cable TV networks including TNT and Discovery, and a film studio, said revenue fell 7% to $9.96 billion compared to the same quarter last year. The net loss attributable to the company was $966 million, or 40 cents per share, an improvement from the year-ago quarter when it reported a loss of $1.07 billion, or 44 cents per share.
The company said total adjusted earnings before interest, taxes, depreciation and amortization were down roughly 20% during the first quarter to $2.1 billion, noting its "Suicide Squad: Kill the Justice League" video game generated significantly lower revenues. Streaming growth was strong, with 2 million direct-to-consumer streaming subscribers added during the quarter, bringing its total to 99.6 million. Advertising revenue for streaming proved to be a bright spot, increasing 70%, boosted by higher engagement on Max in the U.S. due in part to subscriber growth in the streaming service’s ad-lite tier and the launch of sports on the app.
The earnings release follows an announcement this week that Warner Bros. Discovery ( NASDAQ:WBD ) would bundle its streaming services with those of Disney, tying together Max, Disney+, and Hulu, and offer it to consumers this summer, a callback to the traditional pay-TV package. Pricing has yet to be disclosed, but it will be offered at a discount. This marks the first time two media giants are joining forces to offer a streaming bundle as the push to make streaming profitable continues.
On the sports front, CEO David Zaslav said that media rights negotiations with the NBA are still ongoing, and he is “hopeful to reach an agreement that makes sense for both sides.” NBCUniversal recently made an offer to once again own the rights, and Warner Bros. Discovery ( NASDAQ:WBD ) began offering NBA games on Max last fall.
TV networks revenue was down 8% to $5.13 billion, with advertising revenue down 11%. While the ad market has been soft for some time now, recent quarterly earnings show there has been improvement for digital and streaming while traditional TV lags behind. Warner Bros. Discovery’s studio segment revenue was down 12% to $2.82 billion compared to the same quarter last year, weighed down by the lackluster release of the latest iteration of “Suicide Squad” and the lingering effects of the Hollywood writers and actors strikes last year.
Warner Bros. Discovery ( NASDAQ:WBD ) has been working to reduce its debt load, which now stands at $43.2 billion, stemming from the merger of Warner Bros. and Discovery in 2022.
Warner Bros Discovery Faces Setbacks Amid Streaming SuccessWarner Bros Discovery ( NASDAQ:WBD ) emerges as a significant player, amalgamating the powerhouse entities of WarnerMedia and Discovery. However, recent quarterly results have painted a complex picture of triumphs and challenges for the conglomerate, sending ripples through the industry.
Bigger-than-Expected Loss Amid Studio Struggles
The latest quarterly report from Warner Bros Discovery ( NASDAQ:WBD ) has revealed a bigger-than-expected loss. This loss, attributed to a weak advertising market and the repercussions of Hollywood strikes on content production, has investors on edge. The conglomerate's studio business revenue plummeted by 17%, highlighting the struggle to replicate the success of blockbuster hits amidst production disruptions.
Pinning Hopes on Future Releases
Despite the setbacks, Warner Bros Discovery ( NASDAQ:WBD ) remains resilient, pinning its hopes on upcoming releases such as the highly anticipated second installment of the sci-fi epic "Dune." Delays stemming from the Hollywood strikes have underscored the challenges faced by the conglomerate, yet optimism persists for a resurgence with strategic releases in the pipeline.
Streaming Surges Amidst Industry Shifts
While the studio business grapples with challenges, Warner Bros Discovery's ( NASDAQ:WBD ) streaming division stands as a beacon of success. With an impressive 97.7 million global customers and a notable shift from losses to profits over the years, the streaming arm exemplifies resilience and adaptability in the face of evolving consumer preferences.
Exploring Strategic Partnerships
In a bid to capture younger audiences and diversify its offerings, Warner Bros Discovery ( NASDAQ:WBD ) has embarked on strategic partnerships. The joint venture with Walt Disney and Fox to launch a sports streaming service reflects a proactive approach to staying ahead in a competitive market. Additionally, discussions with Paramount's parent company, National Amusements, signal potential consolidation efforts amidst industry buzz.
Looking Ahead
As Warner Bros Discovery ( NASDAQ:WBD ) navigates the landscape of media and entertainment, its resilience and strategic vision remain at the forefront. Despite quarterly setbacks, the conglomerate's streaming division continues to thrive, showcasing adaptability and potential for future growth. With upcoming releases and strategic partnerships on the horizon, Warner Bros Discovery ( NASDAQ:WBD ) is poised to weather challenges and emerge stronger in the dynamic realm of entertainment.
Warner Bros Discovery's ( NASDAQ:WBD ) recent quarterly results underscore the dichotomy of challenges and successes in the ever-evolving media landscape. While setbacks in the studio business cast a shadow, the streaming division's resilience and strategic initiatives offer a glimmer of hope for investors and industry observers alike. As the conglomerate navigates uncertainties and explores new opportunities, its ability to innovate and adapt will be crucial in shaping its future trajectory amidst a rapidly transforming entertainment landscape.
"THE DARK KNIGHT WILL RISE"_WARNER BROS to DOUBLE??The stock of the film and entertainment giant - Warner Bros set out in an impulsive Wave 1 in Dec of last year and had a 80% rally till Feb 2023. That was the end of Wave 1 for the stock and then since then the stock has only seen darkness. But darkness only makes the dark knight stronger (:P).
The stock has given up on almost all the gains it made during the Wave 1 rally and has retraced 90% of it!!! With where the stock is currently placed this is a long term bet that cannot be missed/ignored because of the unmatchable risk/reward it is offering at the moment.
The Wave 3 target for the stock is projected to be around 22-25$ mark.
BEHOLD!!
Note*- This analysis is based on personal observations/opinions. Kindly do your own research before making any financial decisions.
S&P 500 Index Sees Substantial Options Trading Acts occurring Warner Bros Discovery Inc traded an impressive 265,486 contracts, equivalent to approximately 26.5 million underlying shares. This figure represents a whopping 140.1% of its average daily trading volume over the past month. The $11 strike put option, expiring on October 13, 2023, was particularly noteworthy with a high volume of 150,113 contracts.
As a prominent player in the Entertainment industry, Warner Bros Discovery Inc operates with a moderate level of debt, as per InvestingPro Tips. The company's stock price movements are quite volatile, which is reflected in its P/E Ratio of -3.88 and the adjusted P/E ratio for LTM2023.Q2 of -6.81, according to InvestingPro data. Despite not being profitable over the last twelve months, analysts predict the company will be profitable this year, a promising outlook for potential investors.
WBD Warner Bros Discovery Options Ahead of EarningsAnalyzing the options chain of WBD Warner Bros Discovery prior to the earnings report this week,
I would consider purchasing the 15usd strike price Calls with
an expiration date of 2024-1-19,
for a premium of approximately $2.00.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.











