00:00I want to bring another piece of breaking news to our audience here on Bloomberg TV and radio
00:03pertaining to the saga we're seeing between Netflix, Paramount, and the assets, Warner Brothers
00:08Discovery. Netflix is declining to raise its offer for Warner Brothers, which of course had declared
00:13Paramount's offer the superior deal. Netflix said a deal with Warner Brothers Discovery would have
00:18created a holder value but is no longer financially attractive. We are seeing a market reaction to
00:24this in the postmarket. Netflix shares soaring about 10 percent. Paramount Skydance is getting
00:28a bit as well up about four percent. It's worth noting that the Netflix co-CEO Ted Sarandos was
00:34just at the White House this afternoon and now Netflix is taking this position, making me wonder
00:38what exactly was the conversation inside the White House. And Arshi, this also comes after David
00:42Ellison was a guest of Senator Lindsey Graham at the State of the Union on Tuesday. Usually this
00:48would be a story we focus on from a business perspective, but it actually has become quite
00:52a political one as well. Absolutely. And there have been a lot of twists and turns and I went for
00:56clothes and a few more. So I think this is something that we're going to continue to develop. It's I
01:00think
01:01quintessential Trump in terms of keeping everybody guessing and trying to see where this goes.
01:07Annalise, what do you think of this to the point that Kaylee is making? You've got Ellis in the front
01:12row at the State of the Union. Sarandos in the Oval Office today. Was this Donald Trump's
01:17decision? And if it wasn't, do these companies need to make that clear?
01:22Yeah, I mean, I don't think it's Donald Trump's direct decision, but I think Arshi's right.
01:26He does like to involve himself in these things and, you know, a very loud way. And I do think
01:32it
01:32would be beneficial for, you know, CEOs and companies to clarify, you know, how they're talking
01:38about this with the administration and with lawmakers and make that distinction clear. I do think that's
01:43important. Yeah. And Joe, it's it's remarkable to consider this because obviously we are having a much
01:50wider conversation actively in this country right now between about the administration and various
01:54regulators that are part of this administration, including, for example, the FCC and its relationship
01:58specifically with media. And yes, we're talking about a massive archive of movies and various shows
02:04as well. But there is a media element as well here, which is something that when we're thinking about
02:08from a journalistic standpoint, could could have major consequences. You talk about CNN, Kaylee. It's a big
02:13one. The president was asked about it in the Oval Office just a couple of weeks ago. And again,
02:17on Air Force One, remember what he said? It should be sold. He wants it to have a new ownership.
02:23And when you consider the potential ball and chain that this could have been for Netflix. And I know
02:29that there's a big argument in the media world about what that would mean for the company.
02:34Netflix is flying right now. It's up 12 percent in almost a relief rally, knowing that the company
02:41won't have to endure this. Yeah, we are seeing definitely a massive move after hours. Right
02:47now, Netflix is up about 10 percentage points. But I would imagine this is going to be a big
02:51narrative when we begin the trading day tomorrow. I would note, as we continue to contend with this
02:56breaking news here, which again is that Netflix is not raising its offer for Warner Brothers
02:59discoveries. It seems that they no longer think this deal is attractive. Ted Sarandos, the Netflix
03:04co-CEO, was not the only person who was at the White House today meeting with President Trump.
03:08We also saw the mayor of New York City, Zoran Mamdani there, someone who President Trump
03:13on Tuesday called a communist. How are these two still so buddy-buddy, Arshi? I'm a little
03:18confused. Is this a good look for Mamdani? I think in many ways they understand each other
03:24and they're two sides of the same coin. And so it's an interesting dynamic because we saw
03:30it earlier and we saw a very similar shot on this meeting too. Also, New York and the federal
03:36government, there is a very big nexus point there. So they do have to work together.
03:40So I think in this day and age, communication is always good and we see more and more there's
03:45less communications between the two parties. So I think from that perspective, it's a very
03:50positive piece.
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