After months of jabs and feints, the white gloves may have truly come off in Netflix and Paramount's multibillion-dollar battle for control of Warner Bros. Discovery.
President Donald Trump demanded that Netflix fire board member Susan Rice or "pay the consequences." Rice argued during a podcast last week that "it is not going to end well" for corporations, news organizations, and law firms that "bent the knee" to Trump, and that their deference is unpopular.
Netflix has underperformed the S&P 500 by a substantial margin since the company announced a 10-for-1 stock split last October, but most analysts think the stock is undervalued. The market is worried about Netflix's $83 billion bid to buy Warner Bros.
President's comments come as Netflix tries to win a deal, and antitrust approval, to buy Warner's studios and HBO streaming service
Netflix co-CEO Ted Sarandos accused director James Cameron of spreading misinformation about Netflix's proposed Warner Bros. Discovery acquisition after Cameron criticized the deal.
Netflix (NFLX) closed at $78.67 in the latest trading session, marking a +2.17% move from the prior day.
The biggest drama in Hollywood in recent months hasn't been on the silver screen but in the boardrooms of two of the most powerful companies in the industry.
If Netflix can't land WBD, it's NBD.
Netflix Inc (NASDAQ:NFLX, XETRA:NFC) held an analyst briefing this week to make the case that its proposed merger with Warner Bros. Discovery has a cleaner regulatory path than the competing Paramount Skydance bid, deploying its chief global affairs officer and a senior antitrust lawyer from Skadden to push the argument.
Cinemark CEO Sean Gamble said Wednesday he is “apprehensive” about Netflix's Warner Bros. bid. He said Netflix's commitment to keep movies in theaters for 45 days is “some element of encouragement,” but questioned “how contradictory they now are to many of the other disparaging remarks that” the company has made about theaters over the years, citing comments Sarandos made last year that theatrical distribution is “outdated.
Netflix has ample cash and could increase its offer for HBO Max owner Warner Bros Discovery if rival bidder Paramount Skydance ups its own offer, two people with knowledge of the matter said.
Netflix (NFLX) reported earnings 30 days ago. What's next for the stock?