What we’re reading (12/6)
“How A Netflix-Warner Deal Would Change Everything In Hollywood—Again” (Wall Street Journal). “On Friday, Netflix agreed to acquire Warner Bros. for $72 billion after the entertainment company splits its studios and HBO Max streaming business from its cable networks, beating rival bidders Paramount and Comcast. The deal stunned Hollywood, where many assumed David Ellison’s Paramount was the most likely suitor. After Paramount’s aggressive unsolicited approaches to buy all of Warner Discovery prompted the company to put itself up for sale, Netflix’s winning bid came together at a breakneck pace.”
“The Regulatory Path Ahead For A Netflix And Warner Bros. Deal Could Get Dicey” (CNBC). “The size of the deal makes it ripe for scrutiny, from both industry insiders and U.S. lawmakers. The Trump administration is viewing the merger with ‘heavy skepticism,’ CNBC reported Friday, and Sen. Elizabeth Warren has already called for an antitrust review.”
“Beware Of The Unwinding Japanese Carry Trade” (American Enterprise Institute). “The challenge to world financial markets is that the narrowing of the interest rate spread between Japanese bonds and US bonds could lead to an unwinding of the Japanese carry trade and to the repatriation of capital to Japan by that country’s financial institutions. That process could be reinforced by a meaningful appreciation of the Japanese yen, which is currently estimated to be undervalued by between 15 and 20 percent.”
“Main Street Bust Threatens The Entire Economy” (Axios). “More small businesses are filing for bankruptcy under a special federal program this year than at any point in its six-year history. Subchapter V filings, which allow firms to shed debt faster and cheaper, are up 8% from last year, Bloomberg reported, citing data from Epiq Bankruptcy Analytics. Chapter 11 filings — a process used by larger businesses — are up roughly 1% over the same time frame…‘Small firms are the leading indicator what's going on nationally and right now they're signaling weakness,’ says ADP chief economist Nela Richardson.”
“Private Equity Fundraising Remains Glum, Four Years On” (Institutional Investor). “As 2025 nears its end, private equity firms are facing the fourth year of a slide in fundraising. During the first nine months these funds have raised $906.9 billion, down from more than $1.7 trillion in 2022, the year fundraising first began to decline, according to new data from PitchBook. Hilary Wiek, senior strategist at PitchBook, noted that both the number of funds closing and the amount of capital raised remain weak.”
