WEBVTT - Warner Bros. Poised To Reject Paramount, Affirm Rallies, Estee Lauder Rises

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>The Stock Movers report, your roundup of companies making moves

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<v Speaker 2>in the stock market, harnessing the power of Bloomberg Data.

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<v Speaker 1>I'm Carol Masser along with Tim Stanevik. Let's get to

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<v Speaker 1>you some moves in among specific stocks with us is

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<v Speaker 1>Bloomberg crosss at Reporter M. L. Grafeyo.

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<v Speaker 2>How are you.

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<v Speaker 3>I'm good. I'm a little cold in here.

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<v Speaker 2>I'm going to tell you something themed.

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<v Speaker 4>I think the temperature is perfect.

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<v Speaker 1>Yeah, I'm you know, I'm thinking about those things you

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<v Speaker 1>put in when you're hiking and it's cold. I'm going

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<v Speaker 1>to get them, and I think put hand lingers. Yeah,

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<v Speaker 1>you hit them and they warm up.

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<v Speaker 4>They degrees.

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<v Speaker 3>I mean, I'm not wearing Jackie here.

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<v Speaker 4>It's perfect, Carol, not too far away.

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<v Speaker 1>My nose is called. All right, let's get to some

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<v Speaker 1>stocks on them move the pursuit of Warner Brothers Discovery

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<v Speaker 1>A Sex been moving around.

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<v Speaker 3>Yeah, so that stock dropped almost three percent today, and

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<v Speaker 3>then in the postmark it's down about five tenths of

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<v Speaker 3>one percent. We're, of course talking about Warner Brothers, Tiker, WBD,

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<v Speaker 3>so it's at about twenty eight dollars and seventy five

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<v Speaker 3>cents a share. Now, remember the Netflix bid was twenty

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<v Speaker 3>seven seventy five and Paramount's original bid their idea was

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<v Speaker 3>thirty dollars a share, So it's bouncing around, but there's

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<v Speaker 3>some key levels to take into consideration. But the latest

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<v Speaker 3>on this media deal saga is Warner Brothers planning to

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<v Speaker 3>reject Paramount's hostile takeover bid due to concerns about financing

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<v Speaker 3>and other terms. This is a bloomberg scoop, according to

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<v Speaker 3>people familiar with the matter. So the Warner Brothers board

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<v Speaker 3>still views the company's existing agreement with Netflix as offering

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<v Speaker 3>greater value. And one sticking point here is that Warner

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<v Speaker 3>Brothers is concerned about the financing proposed by Paramount, which

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<v Speaker 3>of course led by David Ellison. A lot of that

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<v Speaker 3>equity that they're providing is backstop by a trust that's

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<v Speaker 3>managed by the wealth of Larry Ellison, and because it's

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<v Speaker 3>a revocable trust, the assets can be taken out. So

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<v Speaker 3>the idea here, I guess it adds some uncertainty to this,

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<v Speaker 3>and Warner Brothers is saying, why would we go with

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<v Speaker 3>that if we have the money from Netflix? We also

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<v Speaker 3>got another headline that has to do with Warner Brothers,

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<v Speaker 3>just basically at the same time that the Paramount news

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<v Speaker 3>came out, but also that Jared Kushner's Affinity Partners exiting

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<v Speaker 3>from their takeover battle.

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<v Speaker 1>Yeah, it's it's interesting. You need a whiteboard. But we're

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<v Speaker 1>not done yet, right, so we'll keep an eye on

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<v Speaker 1>this one. Well.

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<v Speaker 4>And still even if Affinity Partners is out, Paramount's offer

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<v Speaker 4>is being bankrolled by a list of influential media Middle

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<v Speaker 4>Eastern investors, Sadi Abi's public Investment Fund, Guitar Investment Authority,

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<v Speaker 4>the Abu Dhabi group called Lamot Lemot Holding Company, So

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<v Speaker 4>there's still it's still a diverse group. I guess the

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<v Speaker 4>question is does the group change if they if Paramount

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<v Speaker 4>says okay, well, actually, really we really do want this. Yeah, well,

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<v Speaker 4>sell some Oracle stock and pony up the deal.

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<v Speaker 3>I don't know, should get in there, Tim tell them

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<v Speaker 3>what to do. I'll also note that Netflix in the

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<v Speaker 3>post market, it's up zero point six percent, so it's

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<v Speaker 3>not a huge move, but we did see a little

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<v Speaker 3>spikee on these headlines.

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<v Speaker 1>Okay, let's go to a firm that one talk to

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<v Speaker 1>us about what is on your radar with this one.

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<v Speaker 3>Okay, so this is a buy now, pay later company.

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<v Speaker 3>They had a industry event today. It's not doing much

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<v Speaker 3>in the post market trade, but it was up about

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<v Speaker 3>twelve percent in the regular trading session. The company's CFO

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<v Speaker 3>said at an industry event, quarter to date trends were healthy.

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<v Speaker 3>And this is according to an Evercore ISI unless that

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<v Speaker 3>was at this event. I watch companies like this that

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<v Speaker 3>do buy now, pay later because it's like, okay, like

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<v Speaker 3>the company's doing well. But does that mean that maybe

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<v Speaker 3>the consumer is more constrained because people are pushing off

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<v Speaker 3>paying for whatever their food, their Christmas presents, agreed, they

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<v Speaker 3>don't have that money in their wallet. Bloomberg Intelligence also

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<v Speaker 3>had some research out today about affirm. They said that

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<v Speaker 3>Apple's multi lender partnerships and adoption among millennials and gen

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<v Speaker 3>Z can help buy now, pay later companies, including a firm.

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<v Speaker 1>Okay, the same thing. We've had that conversation too, that

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<v Speaker 1>if their business is off and running, what does it

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<v Speaker 1>mean that consumers are just you know, doing buy now,

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<v Speaker 1>pay later for more and more things. I feel like

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<v Speaker 1>you go and buy anything online, there's always a buy now,

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<v Speaker 1>pay late later option. Including if you go to sd latter.

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<v Speaker 4>Oh, that's right, good segue.

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<v Speaker 3>And maybe more people will be going to sdy Lauder

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<v Speaker 3>now because Bank of America has raised their price target

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<v Speaker 3>on the stock ticker EO. It was up over three

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<v Speaker 3>percent today in the regular trading session. The company said

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<v Speaker 3>it's its top pick in beauty for twenty twenty six,

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<v Speaker 3>citing improved beauty demand in China and the US.

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<v Speaker 1>Shina is a I mean, this stock is on a tear.

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<v Speaker 1>It's had some issues, but China is a really important

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<v Speaker 1>market for them, So that's that's kind of interesting to see.

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<v Speaker 2>The stock movers report from Bloomberg Radio. Check back with

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