'Fast Money' traders on Netflix, Paramount shares amid WBD bidding war

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we start off with the latest chapter in the battle for warner brothers discovery WBD shares popping three and a half percent today after paramount skydance beefed up its bid for the media giant while the thirty dollars share cash offer stays the same larry ellison the father of

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peace guy CEO david ellison is stepping in personally guaranteeing over forty billion dollars in equity financing it comes almost a week after warner advised the shareholders to reject paramounts hostile bid citing concerns over the ellison family 's commitment to funding the

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deal paramount 's shares jumping over four percent today then there's netflix the streaming giant previously reaching an agreement to buy warner 's film studio and streaming businesses valuing those assets at almost eighty three billion dollars but shares falling more than a

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percent today even after refinancing part of its fifty nine billion dollar bridge loan to bolster its bid for the company so has paramount guidance pulled ahead for the fight in the fight for warner brothers and what does it tell us about the media landscape right now it's

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pretty convincing when larry ellison steps in and says you know what we'll provide you the the information we'll give you the documents to show you that we've got the funds to backstop this deal it's

Guy Adami (?) 01:06.680

funny because dan talks about do they have the money with it completely different context but that came up many months ago and now he's backing up and saying guess what we do and this makes the deal seemingly it should well i don't want to say fall in their lap it put should put

Guy Adami (?) 01:19.270

them into pole position but to answer your question about what does it tell you the importance of content in an AI world is really coming to the forefront and to me that's what's exciting we'll talk about a stock that we've talked about on this show in a few minutes i don't want

Guy Adami (?) 01:33.630

to bury the lead but we'll have somebody come on that talks much more intelligently than i about it yeah

Dan Nathan (?) 01:39.470

so somebody 's going to talk not intelligently about this deal i mean when you think about like oracle and the fact that obviously that's larry company and the stock sold off forty five percent since they got this big open AI deal and the concern was they don't have the money to

Dan Nathan (?) 01:53.750

fund the build out yet larry ellison the founder and i think he's like CTO of oracle now is willing to back and he's one of the wealthiest man in the world but to give forty billion dollars to his kids so he can buy this asset that was literally trading at like a hat size you

Dan Nathan (?) 02:07.950

know what i mean like sex nine months ago it just seems really odd you think he really circled the wagons around this oracle thing because this guy just said content in an AI world right if they can't build out the AI world i'm not sure what the content is going to be worth

Steve Grasso (?) 02:22.350

yeah i think what the relationship with the trump administration first of all i think trump has played this really down the middle of the fairway i can't tell who he wants at this point

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yeah

Steve Grasso (?) 02:31.870

i don't know maybe lately maybe lately he hasn't said much but i do think it's going to be an ellison win even though up until about a week ago it was probably sixty forty netflix 's way there's a good shot that ellison and and sky dance takes it from here but i think to guy 's

Steve Grasso (?) 02:52.550

point it's about content it's about streaming that's where the punk is going who's going to be the most competitive in five years after this deal right that's what you have to ask which side of the fence so i'm not sure if sky dance should be the most competitive i think netflix

Steve Grasso (?) 03:07.230

might be but i don't like it for netflix 's stock i don't like the price action either

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well i think it's interesting to see the reaction in netflix shares in particular today i mean declining on the thought that it might lose this because at first julie it was thought that why would netflix want this in the first place and does this signal sort of a lack of growth

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opportunities of you know going forward to the point where netflix has to reach out and make this deal

Julie Biel (?) 03:31.150

yeah i mean it's never been in their history to be very acquisitive and so it did feel a little bit out of left field i think it makes sense when you're able to have this subscriber base that is as large and as deep as theirs to recognize that the opportunities to monetize an

Julie Biel (?) 03:44.870

existing library as well as an organization that can really put together even more content helps them you know be differentiated but you know how hath no fury like a father whose sons multi billion dollar offer has been scorned right it's not and we're sort of acting like this

Julie Biel (?) 04:01.830

is just the backstop off of you know i want a new condo dad can you cosign on my loan is that all right with you it's a strange situation but i actually think that what really does matter is who can get this deal over from a regulatory standpoint and i think both have good

Julie Biel (?) 04:17.230

arguments for them the thing is is that it's more problematic for paramount if they don't get this deal than it is for netflix i think netflix is just fine they can sort it out they know how to make content but i think paramount is in a lot of well if they can't get this deal