‘Win for everyone’ as Netflix quits Warner Bros takeover battle
The market reaction suggests all parties have benefited, according to Matt Britzman, senior equity analyst at Hargreaves Lansdown.
With Netflix and Paramount both rising nearly 9% in pre-market trading, Britzman commented:
"The streaming takeover saga took a dramatic turn after Warner Bros. Discovery formally recognised Paramount Skydance’s offer as the superior bid, prompting Netflix to walk away almost immediately. After weeks of drama, meetings and speculation, Netflix’s decision to step aside brought an abrupt end to what had been one of the market’s most closely watched corporate chess matches. In the end, it underlined just how fast things can move when big money, regulators and strategic pride collide."
Netflix investors responded positively, with shares increasing 8.5% in after-hours trading. While there was potential for Netflix shares to rise further, management opted for discipline over expansion, removing a significant acquisition uncertainty that had weighed on the stock. The bid appeared to be a combination of offensive and defensive strategy—strengthening content and scale while preventing competitors from gaining advantage—but at a high cost. With that risk eliminated, investors can now focus on Netflix’s core strengths: pricing power, margins, and execution. The market currently views this outcome as a win for all involved.
Whether the Ellison family’s expanding influence in the media sector is a ‘win for everyone’ remains uncertain.
Canada’s economy contracts at year-end
New data reveals that Canada’s economy shrank at the end of last year.
Statistics Canada reported that the economy contracted at an annualized rate of 0.6% in the October-December quarter, equivalent to a 0.15% decline in GDP during the quarter. This followed 2.4% annualized growth (0.6% non-annualized) in the third quarter.
Streaming market impact of Discovery and Paramount merger
Streaming guide JustWatch analysed the potential effects of combining Discovery with Paramount:
- A merged Paramount+, HBO Max, and Discovery+ would control approximately 19% of the US SVOD (streaming video on demand) market, tying with Prime Video and nearly matching Netflix.
- Even excluding Discovery+, Paramount and HBO Max combined would hold 18%, nearly tripling Paramount+’s current 5% share.
- The merger would unite valuable intellectual properties such as Harry Potter, Game of Thrones, and DC.
- Warner Bros., New Line, and Paramount films collectively generate about 26% of all U.S. movie clickouts on JustWatch, accounting for over one in four streaming interactions.
- This consolidation would elevate Paramount from a mid-tier player to a direct competitor to market leaders.
Netflix shares jump, Warner Bros shares decline
On Wall Street, traders reacted to Netflix’s withdrawal from the Warner Bros acquisition, leaving Paramount as the clear contender.
Netflix shares rose 8.5% at market open, reaching $91.74, reflecting investor relief that Netflix maintained discipline and did not increase its offer in response to Paramount’s bid.
Paramount shares increased modestly by 1% to $11.35, despite earlier pre-market gains.
Warner Bros Discovery shares fell nearly 2% to $28.24 following the announcement, indicating concerns about regulatory approval and possible disappointment that Netflix did not engage in a bidding war.
Amazon experiences ordering issues
Amazon faced technical difficulties today, with Downdetector reporting a surge in complaints about problems completing purchases at checkout.
Some customers were unable to finalize orders, although the issues were not universal, as some users successfully placed orders.
I haven't been able to buy anything from Amazon today.@AmazonUK #outage
Bank of England’s Pill warns underlying inflation remains above target
Huw Pill, the Bank of England’s chief economist, cautioned that inflation has not yet been subdued.
Speaking at a webinar hosted by Britain’s Society of Professional Economists and Elgin Advisory, Pill stated:
"I think it is ... important to recognise that the [disinflation] process is still incomplete. We shouldn’t be lulled into a false sense of security by movements in headline inflation which are partly driven by fiscal events or other events.
Underlying inflation is probably still running above target," he added.
Barclays executive appointed deputy governor for prudential regulation
The UK government has appointed Katharine Braddick, a senior Barclays banker, as the next deputy governor for prudential regulation at the Bank of England. She will succeed Sam Woods when he steps down in June.
Currently Group Head of Strategic Policy and senior adviser to the CEO at Barclays, Braddick brings extensive City, regulatory, and policy experience aimed at maintaining UK financial safety while supporting growth and competitiveness.
Chancellor Rachel Reeves commented:
"Katharine Braddick is an accomplished pro-business leader with the experience to keep our financial system safe while backing the investment and lending that drives growth.
She understands the City and regulation, and will help ensure the UK remains one of the best places in the world to do business.
I want to thank Sam Woods for his dedicated service and the strength he has brought to the UK’s prudential regime. Katharine will build on that record — keeping standards high while driving a competitive, growth-focused approach to regulation."
Braddick’s career includes serving as head of banking policy at the Financial Services Authority from 2001 to 2011 and seven years at the Treasury as director general for financial services.
Concerns over job losses amid Warner Bros Discovery takeover
The Bectu union expressed worries that the Discovery takeover could result in job cuts.
Philippa Childs, head of Bectu, responded to Netflix’s withdrawal from its Warner Bros Discovery bid:
"Whoever takes over Warner Bros, continuing consolidation within the creative industries is worrying for anyone who values competition and a plurality of voices and stories in entertainment and the media.
I am concerned that the takeover will have a negative impact on jobs and add to uncertainty in what is already an incredibly precarious sector to work in.
We also need to be increasingly vigilant to prevent further homogenisation of content and the loss of any more of the UK’s unique and distinctive output.
Such developments highlight the importance of the BBC, which continues to provide a unique UK voice as well as playing a fundamental role in our cultural ecosystem. With the BBC charter currently under review, now is a critical opportunity to protect the independence of the creative sector. People in the industry should make their heard and respond to the government’s consultation on charter renewal."
Paramount has previously indicated it could achieve $9 billion in synergies and cost savings from acquiring Warner Bros Discovery, much of which could come from job reductions.
CBS News and CNN staff express concerns as Paramount leads Warner Bros bid
Netflix’s exit from its $83 billion bid for Warner Bros Discovery has caused anxiety among CBS News and CNN employees, who fear the future of their networks under Paramount Skydance’s ownership.
With Paramount emerging as the leading bidder, pending shareholder and regulatory approvals, staff worry about network consolidation and potential job losses.
Some CNN employees are also apprehensive about Paramount’s ownership, which is perceived as Trump-friendly, and possible ideological shifts in programming, especially with CBS News editor-in-chief potentially gaining a significant role.
Bloomberg Intelligence highlighted antitrust considerations related to Paramount’s acquisition of Discovery. Jennifer Rie, senior litigation analyst, noted:
"Paramount has already cleared one hurdle -- clearance from the US Justice Department -- but still needs nods from the EU and UK before it can close, which could take another 10-13 months. Though an outright block is unlikely, remedies may be necessary."
Trust in UK government remains low
New data from the Office for National Statistics (ONS) shows trust in the UK government remains low following Labour’s election victory.
Approximately 21.9% of adults in Great Britain reported trust in the government between December 2025 and January 2026, a statistically significant decline compared to the same period the previous year.
Trust had risen to 27.6% after the July 2024 General Election but steadily declined to its lowest level since before the election by late 2025. The measure fell to 19.5% in November 2023.
The ONS notes that data only extends back to January 2023, so it is unclear if these fluctuations are typical.
The report also highlights a decline in living standards, with UK GDP per capita falling in the third and fourth quarters of 2025.
Hannah Spencer, the Green Party’s new MP for Gorton and Denton, referenced this issue in her victory speech:
"Working hard used to get you something. It got you a house, a nice life, holidays, it got you somewhere."
The ONS further found that mean life satisfaction remains below its pre-pandemic peak, and the percentage of adults reporting good or very good health has significantly decreased from 76.0% in Q4 2020 to 70.9% in Q4 2025, indicating a sustained post-pandemic decline in overall health.
UK government bond prices show slight improvement
UK government bond prices have rallied modestly, reflecting a lack of market panic following the Gorton and Denton by-election.
This rally has reduced yields on UK 10-year and 30-year bonds by two basis points (0.02 percentage points), indicating a slight decrease in the UK’s borrowing costs.
Mark Dowdin of RBC BlueBay Asset Management commented:
"In the UK, the Labour party suffered a humiliating defeat at the Gorton byelection. This outcome was largely expected, but the margin of defeat continues to heap pressure on Prime Minister Starmer.
Nevertheless, gilts have continued their recent outperformance, helped by an improving inflation narrative, which may also, in turn, benefit the outlook for UK government finances."
