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Tom Jones

Netflix has granted Warner Bros. a 7-day waiver to resume deal talks with Paramount to hear out its best and final offer

Warner Bros. Discovery will resume talks with Paramount Skydance to hear out its best and final offer after Netflix granted a limited weeklong waiver, according to a statement released Tuesday morning.

The Warner Bros. Discovery board, per the statement, continues to unanimously back the merger with Netflix, while the streamer will retain its rights to match or exceed any forthcoming offer from Paramount. This fresh negotiation period ends on February 23.

Shares of Warner Bros. Discovery rose on the news, up 2.6% as of 7:46 a.m. ET. Netflix shares also gained about 1% following the press release — suggesting that investors think the streaming giant might be overpaying at the originally agreed-upon price, and that losing out to Paramount could be a blessing in disguise.

Warner Bros. Discovery also confirmed that a Paramount representative told the company it would be willing to pay $31 per share “pending engagement” — that would be up about 3% from the current $30-per-share offer and also doesn’t constitute PSKY’s “best and final” proposal, per the representative.

The headline offer price had, up until now, proved a sticking point for both sides of the Paramount/Warner deal, while a clause covering the $2.8 billion breakup fee with Netflix in PSKY’s most recent offer could also prove enticing.

WBD shareholders will vote on the proposed Netflix merger on March 20. Interestingly, though the WBD board continues to “unanimously recommend” taking the Netflix deal, some prediction markets have now swung to place Paramount as the favorite in the acquisition battle.

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(Event contracts are offered by Robinhood Derivatives, LLC. Data is sourced from KalshiEX LLC.)

Warner Bros. Discovery Agrees to Engage With Paramount in Sales Talks, but for Now Still Backs Netflix Deal as It Sets March 20 Shareholder Vote

Warner Bros. Discovery Agrees to Engage With Paramount in Sales Talks, but for Now Still Backs Netflix Deal as It Sets March 20 Shareholder Vote

Shares of Warner Bros. Discovery rose on the news, up 2.6% as of 7:46 a.m. ET. Netflix shares also gained about 1% following the press release — suggesting that investors think the streaming giant might be overpaying at the originally agreed-upon price, and that losing out to Paramount could be a blessing in disguise.

Warner Bros. Discovery also confirmed that a Paramount representative told the company it would be willing to pay $31 per share “pending engagement” — that would be up about 3% from the current $30-per-share offer and also doesn’t constitute PSKY’s “best and final” proposal, per the representative.

The headline offer price had, up until now, proved a sticking point for both sides of the Paramount/Warner deal, while a clause covering the $2.8 billion breakup fee with Netflix in PSKY’s most recent offer could also prove enticing.

WBD shareholders will vote on the proposed Netflix merger on March 20. Interestingly, though the WBD board continues to “unanimously recommend” taking the Netflix deal, some prediction markets have now swung to place Paramount as the favorite in the acquisition battle.

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(Event contracts are offered by Robinhood Derivatives, LLC. Data is sourced from KalshiEX LLC.)

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Luke Kawa

Sandisk drops after Western Digital confirms plan to unload $3 billion in stock

Western Digital is cashing in more of its Sandisk position.

The hard drive seller is exchanging more than $3 billion in Sandisk shares as part of a debt-for-equity swap.

The two companies were once one, but Western Digital spun off a little more than 80% of its flash drive business in February 2025, and already exchanged the lion’s share of what remained in a separate debt-for-equity swap in June.

This move was very, very well telegraphed by Western Digital, which recently confirmed plans to monetize its Sandisk position before the one-year anniversary of that split (February 21). And Sandisk’s press release makes clear that the company is not the ones selling more stock or making any money off this.

That being said, being a high flying stock that has a Bloomberg headline with “secondary offering” in it could, in theory, spark some turbulence.

Shares of Sandisk have indeed extended the day’s losses to more than 8% in the after-hours session before paring some of that decline.

Western Digital announces additional $4 billion in share buybacks, with management poised to unload its remaining stake in Sandisk

The two companies were once one, but Western Digital spun off a little more than 80% of its flash drive business in February 2025, and already exchanged the lion’s share of what remained in a separate debt-for-equity swap in June.

This move was very, very well telegraphed by Western Digital, which recently confirmed plans to monetize its Sandisk position before the one-year anniversary of that split (February 21). And Sandisk’s press release makes clear that the company is not the ones selling more stock or making any money off this.

That being said, being a high flying stock that has a Bloomberg headline with “secondary offering” in it could, in theory, spark some turbulence.

Shares of Sandisk have indeed extended the day’s losses to more than 8% in the after-hours session before paring some of that decline.

markets
Luke Kawa

Cadence Design Systems jumps after Q4 earnings, 2026 profit outlook, and sales backlog exceed estimates

Cadence Design Systems jumped in after-hours trading on Tuesday, briefly erasing the day’s big losses, after posting better-than-expected Q4 earnings, a big pipeline of future business, and a solid profit outlook for 2026.

For Q4, the electronic design automation company reported:

  • Sales of $1.44 billion (estimate: $1.42 billion).

  • Adjusted earnings per share of $1.99 (estimate: $1.91).

  • Remaining performance obligations (RPO) of $7.8 billion (estimate: $7.25 billion).

Management said that 2026 adjusted earnings per share would range between $8.05 and $8.15, above the consensus call for $8.03.

In recent weeks, investors have worried that Cadence’s software business, which is used by chip designers, could suffer competitive pressure from AI tools. At the very least, that RPO figure says there’s billions of dollars standing between Cadence and any more disrupted future.

Luke Kawa
Final Boss
55m
Infleqtion CEO Matt Kinsella on how the newly public quantum computing company is “following in the footsteps of Nvidia”

Infleqtion shares gained double digits in their opening session, while peers sold off.

US-AI-SCIENCE-NVIDIA
Tasha Matsumoto
2h
Stocks erase morning losses in volatile trading session

The S&P 500 posted a small gain, the Nasdaq 100 posted a small loss, and the Russell 2000 finished flat.

Josh Giddey #3 of the Chicago Bulls grabs a rebound during the second half against the Detroit Pistons on October 22, 2025 at the United Center in Chicago, Illinois.
Max Knoblauch

Oil prices dip, sending airline stocks climbing amid US-Iran talks

An agreement between the US and Iran on a “set of guiding principles” following talks between officials from the two countries on Tuesday is sending oil prices lower. That, in turn, is boosting airline stocks.

West Texas Intermediate crude futures were down 1.1% Tuesday afternoon. Shares of airlines, including United Airlines, American Airlines, Alaska Air, JetBlue, and Delta Air Lines were up.

Southwest Airlines, which also received an upgrade to “buy” and a price target hike to $73 from $51 by UBS on Tuesday morning, was up more than 7%.

Iran said it temporarily closed the Strait of Hormuz for live fire drills on Tuesday as the talks began. About 20% of the world’s oil passes through the key choke point waterway. Later in the day, however, Iran’s foreign minister expressed optimism that a deal could be reached with the US, saying “a new window has opened.”

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