Jennifer Saba

David Ellison’s expanding empire wants to buy his larger rival before David Zaslav splits HBO and studios from CNN and other networks. The parts would be worth about $30 a share combined in two years, Breakingviews estimates. That means $24, or a 33% premium, to seal a deal now.

NEW YORK (Reuters Breakingviews) - David Ellison's mission: grab Warner Bros Discovery before it splits.

Starbucks, Nike and Apple are among those that overexpanded and now face stiffer competition in the Asian behemoth. Defying the trend is the fashion brand draped in stars and stripes. The many pitfalls, however, include market realities that often undercut grand sales plans.

The streaming giant’s 17% rise in quarterly revenue and chunky operating margin belie a looming threat. YouTube attracts more TV viewers and it’s widening the lead. Netflix bested its rivals in the world of traditional shows and movies. Short-form video is its Achilles’ heel.

Microsoft, Alphabet and Meta spent another $60 bln combined in the quest to conquer machine learning. The Windows maker can best handle investment trending toward 75% of cash flow while Google’s owner takes a more prudent approach. Danger lurks most in Mark Zuckerberg’s empire.

The broadcaster took an 8% stake in rival Scripps, adding pressure to takeover talks. Cost savings of $300 mln, if valued richly, are tantalizing for the target. Yet lumbering debt and a history of aggressive dealmaking gone awry urge a calmer approach.

Spending some $70 bln to buy HBO and the 'Harry Potter' studio would be out of step for a streaming titan that has shunned big deals. Co-CEO Ted Sarandos deserves some benefit of the M&A doubt, but the implied return is just 3%. The defensive posturing makes it extra curious.

The streaming giant is buying the storied film studio and rival HBO for $83 bln, including debt. Even if it overcomes political and regulatory hurdles, the implied return with chunky savings looks weak. Hollywood temptation that hurt AOL, AT&T and Discovery strikes again.

The studio behind ‘The Godfather’ bypassed its takeover target’s board and appealed directly to shareholders with a $108 bln proposal. Boss David Ellison is dangling more cash than Netflix and including the cable networks at a reasonable valuation, too. It’s an easy choice.

The latest rejection of Paramount’s $108 bln takeover bid, citing debt concerns, rings hollow. After all, HBO's owner is the one that hinted cash is king and the rival suitor has acquiesced to every demand. Moreover, Comcast's cable spinoff suggests Netflix's offer falls short.