Netflix is down amid reports it’s leading the Warner Bros. bidding war as Paramount cries foul
Netflix’s charm offensive appears to be working.
Netflix is reportedly emerging as the leader in the bidding war for Warner Bros. Discovery after second-round bids this week, edging out entertainment juggernaut rivals Comcast and Paramount Skydance.
Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.
Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.
Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.
Investors don’t appear psyched by the streaming leader’s turn of fortune: the stock is down on Thursday morning, a day after closing down nearly 5% following reports that scooping up HBO Max wouldn’t necessarily result in a big market share boost.
Paramount, which has reportedly made five bids for Warner Bros. Discovery, doesn’t love the current state of play, either. The company sent WBD a letter questioning the “fairness and adequacy” of the process, highlighting reports that WBD’s board favors Netflix and is resisting Paramount.
Any offer would be subject to regulatory approval — a fact that may have weighed against Netflix’s offer given that cofounder Reed Hastings’ politics are vocally to the left, very much at odds with the current regulatory regime. Paramount seems confident in its ability to get approval, reportedly boosting its breakup fee to $5 billion should its potential acquisition fall apart in the regulatory process.
Delta says the government shutdown will cost it $200 million in Q4
The 43-day government shutdown that ended last month will result in a $200 million ding for Delta Air Lines, the airline said in a filing on Wednesday.
That’s about $100,000 per shutdown-related canceled flight. (Delta previously said it canceled more than 2,000 flights due to FAA flight reductions.) When the company reports its fourth-quarter earnings, the shutdown will lop off about $0.25 per share.
Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.
The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”
Delta’s shares were up over 2% as of Wednesday’s market open.
Delta initially stayed calm about the shutdown, with CEO Ed Bastian stating in early October that the company was running smoothly and hadn’t seen any impacts at all. One historically long shutdown later, Delta wasn’t able to remain untouched.
The skies have since cleared, though, and Delta’s filing states that booking growth has “returned to initial expectations following a temporary softening in November.”
Delta’s shares were up over 2% as of Wednesday’s market open.
Archer adds Miami to its list of planned US air taxi network hubs
Archer has previously announced its plans for US air taxi networks in Los Angeles and New York City.
Ford drops as its EV sales tumble more than 60% year over year on the end of the tax credit
As expected, Ford’s EV sales continued to fall in November, dropping more than 60% year over year to 4,247 vehicles. That’s around 10% less than October’s figure. Ford shares are down about 2% on Tuesday morning.
Ford sales are being weighed down by the elimination of the $7,500 EV tax credit at the end of September, as well as the aluminum fires at the New York plant of its primary aluminum supplier.
The company’s total November sales figure ticked down 0.9% to 164,925 vehicles, about 10,000 below October’s total.
Instacart falls as Amazon announces ultrafast delivery testing in major US cities
Shares of Instacart were down as much as 4% in early trading on Tuesday after e-commerce giant Amazon outlined plans to test ultrafast delivery offerings in parts of Seattle, Washington, and Philadelphia, Pennsylvania.
On Monday, Amazon released a statement announcing that deliveries of “household essentials and fresh grocery items” in approximately 30 minutes or less are now available in certain areas.
The ultrafast offerings come as part of Amazon Now, the company’s same-day grocery delivery service, which has been looking to expand since moving into selling perishable goods like eggs, milk, and fresh produce earlier this year.
While Instacart had a stronghold on rapid grocery delivery for years — following a solid debut on the Nasdaq back in 2023, the stock has risen gradually on some better-than-expected results — analysts have been wary that its retail offerings won’t be able to match Amazon’s incredible reach.
Amazon’s ultrafast service will build on its Prime model, with the statement detailing that Prime members will get discounted delivery fees, starting at $3.99 per order — compared with $13.99 for non-Prime customers.
Far from the first, and certainly not the last, it seems that Instacart might have just gotten “Amazoned.”
Eli Lilly slashes Zepbound vial prices on its direct-to-consumer platform
It’s the latest move in an ongoing price war between the two drugmakers that sell the incredibly lucrative medications.
The idiot’s guide to AI jargon
Don’t like politics at the Thanksgiving table? Here’s some performative AI jargon for you to weaponize so you can win the day.
Ford dips as another large fire breaks out at the New York Novelis aluminum plant
Shares of US auto giant Ford are down more than 2% on Thursday morning following reports of another major fire at its primary aluminum supplier’s plant in Oswego County, New York.
Local media reported that a four-alarm fire broke out at the Novelis plant, which supplies 40% of the aluminum sheet for the US auto industry, on Thursday morning.
Last month, Ford said a September fire at the plant would hit its earnings by between $1.5 billion and $2 billion in the fourth quarter. The company said it would be able to mitigate about $1 billion of that next year.
As of 10:15 a.m. ET, local officials said the fire is under control and everyone had been safely evacuated. Novelis previously said it would be able to restart operations at the part of the plant most damaged by the September fire next month.
Last month, Ford said a September fire at the plant would hit its earnings by between $1.5 billion and $2 billion in the fourth quarter. The company said it would be able to mitigate about $1 billion of that next year.
As of 10:15 a.m. ET, local officials said the fire is under control and everyone had been safely evacuated. Novelis previously said it would be able to restart operations at the part of the plant most damaged by the September fire next month.
Archer Aviation strikes deal to supply electric propulsion system to Anduril, bolstering its path to revenue
Archer Aviation announced its new agreement with Anduril after the market closed on Monday.
Ford partners with Amazon to sell its used vehicles online
Beginning today, many Amazon shoppers can add a pre-owned Ford to cart.
The partnership, announced by the two companies on Monday, will begin in Los Angeles, Dallas, and Seattle, with plans to expand.
According to Ford, every vehicle sold through Amazon will have been “inspected, reconditioned, and comes with a Ford warranty, Ford Rewards points, and in some cases, a money-back guarantee.”
Shares of used car retailers Carvana and CarMax dipped in early trading on the news. Similar patterns occurred when Amazon Autos announced a partnership with Hyundai late last year, and another with rental giant Hertz in August.
According to Ford, every vehicle sold through Amazon will have been “inspected, reconditioned, and comes with a Ford warranty, Ford Rewards points, and in some cases, a money-back guarantee.”
Shares of used car retailers Carvana and CarMax dipped in early trading on the news. Similar patterns occurred when Amazon Autos announced a partnership with Hyundai late last year, and another with rental giant Hertz in August.
Walmart falls after CEO of more than a decade steps down
Walmart’s stock fell as low as 3% this morning in premarket trading on news that its longtime CEO, Doug McMillon, who helped the company beef up its e-commerce segment against Amazon, will be stepping down.
While Walmart’s sales came in above expectations last quarter, it missed on quarterly earnings. It’s also facing an increasingly dominant Amazon, which is pushing further into Walmart’s territory with same-day grocery delivery in more than 1,000 cities and towns in the US, with plans to expand to 2,300 by the end of the year.
And unlike Walmart, Amazon, in addition to e-commerce and physical stores, has a number of other, much higher-income revenue streams — most notably its fast-growing cloud business, AWS. Earlier this year, Amazon nudged ahead of Walmart in overall revenue, and is expected to continue to build on that lead when Walmart reports Q3 earnings next week.