Breaking down Paramount's $108bn hostile bid for WBD in PSKY / NFLX bidding war + Don’t call it QE: The Fed’s new playbook

Dec 13, 2025

Kristen and Jen dive deep into the intense bidding war for Warner Brothers Discovery. They explore the peculiarities of Paramount’s $108 billion bid, highlighting its leveraged buyout nature and financing strategies. The discussion then shifts to the Fed’s recent rate cuts, emphasizing a significant transition in liquidity support and its historical context. Additionally, they discuss upcoming tax changes that could benefit charitable donations, making donor-advised funds particularly notable for high earners.

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INSIGHT

Paramount Bid Is Essentially An LBO

Paramount's $30/share hostile bid functions like a classic leveraged buyout rather than a traditional M&A acquisition.
The deal would be a record-sized LBO funded largely by external equity and debt, not by Paramount's own capital.

INSIGHT

Paramount Is The Vehicle, Not The Bankroller

Paramount itself is small and highly leveraged, so outside investors and banks supply most of the transaction capital.
Pro forma equity splits show sovereign funds and Jared Kushner at ~43% and Larry Ellison/Redbird at ~30% economically.

INSIGHT

Economics ≠ Control In Media Deals

Ownership economics differ from voting control; non-voting shares can hide foreign influence while legally complying.
Even non-voting investors can exert soft influence through back-channel conversations and board access.

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0-21:30: PSKY / WBD Deal breakdown
21:30-51:08 The Fed Breakdown
51:08-56:27: Donor Approved Funds for Charity

In this episode, Kristen and Jen continue to unpack Warner Brothers Discover bidding war from what the media is constantly getting wrong including missing the non apples to apples bids from PSKY and NFLX as well as why Paramount’s bid looks nothign like traditional M&A and is basically a straight-up leveraged buyout. They also break down the question everyone’s up in arms about: who is in control when this deal goes through.

Then Jen shifts gears into the Fed…and why the headlines are missing what actually matters. Yes, there was a 25bp rate cut — but the bigger story is the Fed’s new plan to support funding markets through reserve management purchases (RMPs) and short-dated Treasury buying. Jen translates the Fed’s most painfully dry policy language into plain English, explains what “ample reserves” really means, and walks through why the Fed is stepping in now — with historical parallels to 2019’s repo market stress and the post-2008 era of balance-sheet whiplash. The takeaway: this isn’t a red-alert crisis moment, but it is a meaningful shift in liquidity support… and it sets up some very interesting asymmetry heading into 2026.

Finally, they end with a practical PSA that could save high earners real money: a tax change coming in 2026 (and why there’s urgency before year-end) makes donor-advised funds newly relevant if you give to charity consistently. They explain how “bunching” donations can potentially maximize deductibility — and how donating appreciated stock can help you avoid capital gains taxes while still supporting the causes you care about. Not tax advice (seriously: ask your CPA), but if you’re philanthropic and market-savvy, this is one of those “tiny line in a bill, huge impact” moments you don’t want to miss.

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