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Warner Brothers To Put Itself Up For Sale
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Paramount launches hostile takeover bid for Warner Bros. Discovery at $30 per share, trying to upend Netflix deal

Paramount is taking its Warner Bros. Discovery purchase effort straight to shareholders.

The war to buy Warner Bros. Discovery may not be finished just yet. Paramount Skydance, which seemed like the runaway winner of the deal until late last month, has now launched a hostile takeover offer for the entertainment giant, hoping to stop Netflix in its tracks.

Paramount said Monday it has commenced an all-cash tender offer to buy WBD shares from existing shareholders at $30 each. It’s worth noting that the value is just $2.25 per share better than Netflix’s agreed-upon deal — but Paramount is seeking to buy all of WBD, not just its streaming and studio businesses like Netflix.

Warner values Netflix's offer at around $31 to $32 a share because Warner shareholders would also get several dollars of value out of the cable business that gets split off, The Wall Street Journal reported last week, citing people familiar with the matter.

“Despite Paramount submitting six proposals over the course of 12 weeks, WBD never engaged meaningfully with these proposals which we believe deliver the best outcome for WBD shareholders. Paramount has now taken its offer directly to WBD shareholders and its Board of Directors to ensure they have the opportunity to pursue this clearly superior alternative,” Paramount said in a statement.

While hostile takeovers are generally a long shot, this situation is a bit different as the move is an attempt to leapfrog a different takeover. Netflix is also facing a wall of opposition to its deal. President Trump over the weekend said the Netflix-WBD merger “could be a problem” and that he would speak to economists about it.

When asked in an interview Monday morning if the President was in his corner, Ellison said on CNBC: “What I would say is I'm incredibly grateful for the relationship I have with the president. And I also believe he believes in competition. And when you fundamentally look at the marketplace, allowing the No. 1 streaming service to combine with the No. 3 streaming service is anticompetitive.”

Shares of Paramount and Warner Bros. spiked in response to the news on Monday morning. Shortly after the open, Warner Bros. was trading at $27.80, still well below the tender offer’s price.

Shares of Netflix were recently down about 3%.

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Ford raises its full-year guidance, receives $1.3 billion tariff refund

Ford reported its first-quarter results after markets closed on Wednesday. The automaker’s shares climbed roughly 7% in after-hours trading on the news.

For Q1, Ford reported:

  • Adjusted earnings of $0.66 per share, compared to the $0.18 per share expected by Wall Street analysts polled by FactSet. The figure includes Ford’s tariff reimbursement.

  • $43.25 in total revenue, vs. the $42.66 billion consensus forecast. Automotive revenue came in at $39.8 billion, compared to estimates of $38.9 billion.

  • A $1.3 billion tariff refund.

Ford boosted its full-year guidance for adjusted earnings before interest and taxes to between $8.5 billion and $10.5 billion, up from between $8 billion and $10 billion.

Late last year, Ford announced it would take $19.5 billion in charges — one of the largest write-downs ever — relating mostly to its EV business. Of those charges, $7 billion will be spread across this year and next, the company said.

Earlier this month, Ford recorded an 8.8% drop in Q1 sales from the same period last year, a similar result to Detroit rival GM, which posted a 9.7% sales drop.

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Microsoft beats on revenue and earnings in Q3, but only meets expectations for cloud growth

Microsoft shares dipped after the company reported strong Q3 earnings postmarket Wednesday, posting ​​sales of $82.9 billion for the quarter, beating FactSet analyst estimates of $81.4 billion. Earnings per share were $4.27, handily beating estimates of $4.05. 

In a closely watched number, Microsoft’s Azure cloud business increased 40% year on year, just above the 39.7% estimated. The metric technically beat expectations, but may not be the beat investors were looking for.

Total capital expenditure for the quarter was $31.9 billion, up 49% year on year, above estimates of $27.5 billion and down from Q2’s $37.5 billion.

One thing investors were eager to find out: how is the company doing in its effort to fulfill the billions in backlogged commercial bookings? Last quarter, the company reported a staggering $625 billion in remaining performance obligations, and 45% of that was for just one customer — OpenAI.

For the third quarter, Microsoft reported a backlog of $627 billion, up 99% year on year. The company said the RPO increase was 26% — in line with “historical seasonality” — when excluding OpenAI.

Breaking down the results by the company’s business lines:

  • ☁️ 🤖 Intelligent Cloud (Azure, server products): $34.7 billion in revenue, up 30% year on year.

  • 📝 📊 Productivity and Business Processes (Microsoft 365, LinkedIn, Dynamics): $35 billion in revenue, up 17% year on year.

  • 💻 🎮 More Personal Computing (Windows, Xbox, Bing): $13.2 billion in revenue, down 1% year on year.

Microsoft CFO Amy Hood said in the earnings release:

“We delivered results that exceeded expectations across revenue, operating income, and earnings per share, reflecting strong execution and growing demand for the Microsoft Cloud.”

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