Denisa Sokova, a cross-asset reporter from Bloomberg News, joins to discuss major market shifts. Netflix's revolutionary acquisition of Warner Bros. is a highlight, marking a bold new chapter for the streaming giant. They delve into the implications of owning iconic properties like HBO and its hit shows. The discussion also touches on Microsoft's slip regarding its AI marketplace and the subsequent investor concerns. Lastly, Denisa reviews Salesforce's impressive revenue outlook and the early adoption of AI tools, amidst lingering market anxieties.
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Netflix's Transformative Studio Move
Netflix's acquisition of Warner Bros. marks a historic pivot from pure streaming to owning major studio and IP assets.
The deal raises antitrust questions and shifts Netflix into content ownership and studio operations.
question_answer ANECDOTE
15-Second Sopranos Claim To Fame
Alexis Christophorus shares a personal story about appearing in an episode of The Sopranos while at Bloomberg.
The 15-second clip still draws recognition decades later, illustrating lasting cultural reach.
insights INSIGHT
AI Spending Fears Hit Microsoft
Microsoft shares fell after a report it lowered expectations for enterprise AI marketplace revenue, despite disputing claims.
The market reacted nervously because AI spending trends ripple across suppliers of chips and servers.
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On this episode of Stock Movers, we look at some of the biggest movers of the week:
- Netflix (NFLX) agreed to buy Warner Bros. Discovery (WBD), marking a seismic shift in the entertainment business as a Silicon Valley-bred streaming giant tries to swallow one of Hollywood’s oldest and most revered studios. The acquisition, which confirmed a Bloomberg report Thursday, presents a strategic pivot for Netflix, which has never made a deal of this scope in its 28-year history. With the purchase, Netflix becomes owner of the HBO network, along with its library of hit shows like The Sopranos and The White Lotus. Warner Bros. assets also include its sprawling studios in Burbank, California, along with a vast film and TV archive that includes Harry Potter and Friends. Netflix shares were down 3.5% Friday afternoon in New York. They have declined about 17% since the streaming leader emerged as an interested party in October. Some investors and analysts have interpreted this deal to mean Netflix was worried it couldn’t expand its current business, a theory co-CEO Greg Peters dismissed. Warner Bros. stock was up about 5.2% midday in New York. It has almost doubled since reports of deal talks with Paramount emerged in September.
- Microsoft (MSFT) shares slid on Wednesday after the Information reported that the software maker has lowered expectations for getting business customers to spend money on the cloud unit’s marketplace for artificial intelligence models and agents. The stock fell as much as 3% in New York on Wednesday, but pared the drop as analysts and investors digested the Information report.
- Salesforce (CRM) gave an outlook for revenue in the current period on Wednesday that topped analysts’ estimates, suggesting the software company is persuading customers to buy its AI tools. The revenue forecast includes 3 percentage points of growth from Informatica, a data integration software maker that Salesforce acquired last month in an $8 billion deal. The outlook for current remaining performance obligations includes 4 percentage points from Informatica. The shares gained about 5% in extended trading after closing at $238.72 in New York. The stock has dropped 29% this year through Wednesday’s close as investors have grown concerned about AI disrupting incumbent application software makers. It continued to rally through trading on Friday.
Stock Movers