Business
WBD and Paramount may have an easier time winning regulatory approval than Netflix
The Paramount logo is displayed above an entrance to Paramount Studios on Feb. 23, 2026 in Los Angeles, California.
Justin Sullivan | Getty Images
A day after Paramount Skydance emerged as the winner to take over fellow media giant Warner Bros. Discovery, questions are mounting about the companies’ regulatory path forward.
The WBD board said on Thursday that Paramount’s revised $31-per-share offer was superior to an existing bid from Netflix, prompting the streamer to announce that it was walking away from the deal entirely and clearing the way for Paramount.
Paramount’s raised offer — up from $30 per share — was the latest in a series of moves it made after it launched a hostile bid late last year to buy WBD. It had initially lost out on a bidding war to Netflix, which offered $27.75 per share.
Paramount’s latest bid also included a $7 billion breakup fee if the deal doesn’t win regulatory approval. And according to a Friday filing, it has already paid the $2.8 billion breakup fee that WBD owed to Netflix if the deal fell through.
But media industry experts said it’s looking more likely that the Paramount deal will get through government scrutiny than it did when Netflix was in the picture.
Netflix vs. Paramount
Netflix co-CEOs Ted Sarandos and Greg Peters said Thursday that it was “no longer financially attractive” to match Paramount’s raised offer.
Though Netflix executives had said they were “highly confident” that their deal would win approval, the merger would have brought together two top streaming services — Netflix and Paramount+ — and could have potentially raised prices for consumers and decreased competition.
In early December, Trump said the Netflix-WBD deal “could be a problem” because of the increased market share Netflix would gain, saying he would be involved. He walked back those comments earlier this month, saying the deal would be at the sole discretion of the Department of Justice.
And while the size of a combined Netflix and WBD entity was one of the companies’ largest antitrust obstacles, that issue could still be raised for Paramount.
Both Paramount and WBD have sprawling portfolios of TV networks, in addition to Paramount+ hitting 78.9 million subscribers, according to its most recent earnings report, and HBO Max counting 131.6 million subscribers through the end of 2025.
Paramount executives argued one of the pros of their offer was that a deal with the media company would garner less government scrutiny. Paramount Skydance CEO David Ellison’s father, Oracle co-founder Larry Ellison, is known to have close relations with President Donald Trump.
Trump’s son-in-law, Jared Kushner, is backing the Paramount deal, according to a filing with the Securities and Exchange Commission.
Still, Paramount’s proposed deal had come under criticism for potentially being funded by the sovereign wealth funds of Saudi Arabia; Abu Dhabi, United Arab Emirates; and Qatar. The company has previously said that those entities have agreed to forgo all governance rights, including board representation.
California Attorney General Rob Bonta, a Democrat, warned on Thursday night that the merger was “not a done deal” and that the California Department of Justice, which has an open investigation into the deal, will be vigorous in its review.
And Democratic Sen. Elizabeth Warren of Massachusetts said in a statement that the Paramount and WBD merger is “an antitrust disaster threatening higher prices and fewer choices for American families.”
A potential for fewer concerns
Analysts from Raymond James said they believe the Paramount-WBD deal could pose far less of a risk for regulatory approval than a Netflix tie-up.
In a Friday note, the analysts said the regulatory path forward for Paramount is “meaningfully easier” than Netflix’s, though it would not be a “cakewalk.”
“Of course, there are new challenges with this deal around news, cable networks, international linear networks, etc., but we still feel the WBD/PSKY deal is more palatable all-in,” the analysts wrote. “And, particularly following the reaction to the WBD/NFLX agreement, we believe PSKY’s political standing with the current U.S. administration is much stronger than Netflix’s.”
The analysts noted that questions remain about how the competitive market for the companies will be defined by the DOJ, and they speculated that Netflix likely decided not to match Paramount’s superior offer because of what was “likely to be a brutal regulatory review.”
A Friday note by Morningstar analysts echoed those thoughts. The analysts said the move was right for both Netflix and Paramount because they believed Netflix was unnecessarily overpaying for WBD’s streaming and studios.
Notably, Paramount aimed to buy the entirety of WBD, including its pay-TV networks, such as CNN, TBS and TNT, while Netflix only wanted the company’s studio and streaming assets.
“This is the best outcome for Warner shareholders, in our view, as we’ve felt that, with a higher likelihood of prompt regulatory approval and uncertainty surrounding the value and risk of the network business they would have retained, the best offer would have been $30 in cash,” the analysts wrote.
The analysts added that they don’t expect Paramount to face any regulatory issues during the approval process.
‘Horizontal consolidation’
Joseph Kalmenovitz, an assistant professor of finance at the Simon Business School at the University of Rochester, said Paramount’s timing for the bid was likely strategic.
“David Ellison didn’t just outmaneuver a Hollywood board — he timed the regulatory cycle perfectly,” Kalmenovitz said. “The populist, big-is-bad philosophy is out; the deal-friendly establishment is back in.”
Still, Paren Knadjian, a partner at advisory firm EisnerAmper, said the regulatory path forward for Paramount remains nuanced and isn’t a done deal. While concerns over the Netflix-WBD deal focused largely on library content, the Paramount-WBD deal is far more of a “horizontal consolidation” effort between cable TV, sports, streaming and news, he said.
“I think the biggest thing we’re going to focus on is the concentration of intellectual property under one roof,” Knadjian told CNBC. “What power does that give this new entity in terms of the ability to charge more?”
Knadjian said Paramount will also be facing political concerns, not only from state and federal politicians, but between CNN and CBS combining under one roof, in addition to concerns over blockbuster franchises like “Star Trek” and “Harry Potter.”
Ultimately, the approval of the deal will come down to which concessions the two companies will have to make in order to assuage any fears over a possible media monopoly.
“The regulatory pressure, the political pressure, those are the things that will certainly delay the deal and will make it more complicated, and I think there’s going to have to be significant concessions for it to go through.
There’s so many factors to this. It’s much more complicated than many of the other deals we’ve seen in the past,” Knadjian said.
– CNBC’s Lillian Rizzo contributed to this report.
Business
From early flop to Hollywood heavyweight, Skydance eyes Warner Bros takeover after 20-year rise – The Times of India
Two decades after debuting with a box office failure that drew harsh reviews, Skydance Productions is now poised to become one of the most powerful forces in global entertainment, with a proposed takeover of Warner Bros. Discovery marking the latest chapter in its dramatic rise, according to news agency AP report.Founded in 2006 by David Ellison, son of Oracle co-founder Larry Ellison, the studio began as a relatively obscure entrant in Hollywood. Its first film, Flyboys, a World War I drama starring Ellison himself, failed commercially and critically, prompting early doubts about the company’s future.Yet the studio steadily built momentum through partnerships, strategic financing and franchise-driven successes. Today, following its merger with Paramount and a fresh bid to acquire Warner Bros. Discovery, Skydance stands on the verge of transforming into a media powerhouse spanning film, television, streaming and news assets.“It’s only a surprise to those who haven’t been paying attention to the long game,” said Walter Nicoletti, founder of film production company Voce Spettacolo. “This is a sort of a silent takeover. Skydance didn’t start as a predator. It started as an essential partner.”
From outsider to industry player
When Ellison launched Skydance at age 23, the company barely registered in Hollywood’s competitive landscape. Early criticism of Flyboys was scathing, with reviewers calling it “cloyingly formulaic” and an “inflated wannabe epic.”Despite setbacks, Ellison continued investing in large-scale productions and partnerships with major studios and platforms including Paramount, Netflix and Apple. Over time, Skydance produced a string of commercially successful films and series, culminating in the billion-dollar hit Top Gun: Maverick in 2022 starring Tom Cruise.Jason Squire, a former studio executive and emeritus professor at the University of Southern California, said Ellison’s rise reflected both persistence and financial backing.“One of the traditions of entering the movie business is serious wealth, or access to serious wealth,” Squire said, AP quoted. “But once you get a foothold, you have to demonstrate that wealth — by buying things, acquiring projects… They became a player.”He added, “He became a member at the table when these partnerships and the infusion of dollars really set him up on a really strong trajectory. It’s quite amazing.”
Expansion through mergers and deals
Rather than being acquired by a larger studio, Skydance ultimately became the acquirer. After years of collaboration, it merged with Paramount last year, gaining control of networks including MTV, Comedy Central, Nickelodeon and CBS.Since then, Ellison has expanded aggressively, securing agreements ranging from streaming rights for Ultimate Fighting Championship to partnerships with creators of the hit series Stranger Things.Netflix had also been viewed as a potential buyer of Warner Bros. Discovery, but Skydance ultimately emerged as the winning bidder after the streaming giant withdrew its offer. Regulatory approval remains the final hurdle.Tre Lovell, a Los Angeles media lawyer, described the company’s ascent as unprecedented. “This was absolutely a meteoric rise. Two decades from its formation to its current position to become one of the most powerful media companies in the world is nothing less than incredible,” he said.
A reshaped media landscape
If the Warner deal is finalised, Ellison would oversee an expansive portfolio including HBO, HGTV, Food Network and CNN, significantly expanding Skydance’s footprint across entertainment and news.The move also highlights shifting industry dynamics, with consolidation raising concerns among some executives about reduced competition. Squire said he was “no fan” of the takeover despite acknowledging Skydance’s remarkable trajectory.Warner Bros. enters the deal from a position of creative strength, having secured 30 Oscar nominations and a 21% domestic box-office share in 2025, compared with Paramount’s 6%.For Ellison, the transformation marks a striking reversal from the early days when the failure of Flyboys reportedly left him hospitalised with atrial fibrillation. Two decades later, the studio once dismissed as a vanity project now stands at the centre of Hollywood’s biggest power shift.“Hollywood has seen David-versus-Goliath moments before,” said Vikrant Mathur, co-founder of streaming company Future Today.
Two of the largest U.S. gym operators delivered the same headline in their latest earnings reports: strong growth.
But beneath the surface, Life Time Group Holdings and Planet Fitness told very different stories about the American consumer. They highlighted a widening divide between higher-income households that continue to spend freely and more price-sensitive consumers who are beginning to show signs of strain.
The Planet Fitness logo is seen on the outside of its gym at the Loyal Plaza in Loyalsock Township, Pennsylvania.
Paul Weaver | Lightrocket | Getty Images
Both companies reported double-digit percentage revenue growth, rising memberships and expanding footprints in 2025. Their respective outlooks for 2026, however, point to a “K-shaped” economy, a term used to describe a split in spending trends between higher and lower-income groups. Here’s what we learned.
Life Time: Affluent consumers keep spending
Life Time’s earnings reinforced that affluent Americans are still shelling out, especially on their health and wellness.
In the fourth quarter, the company’s total revenue rose 12.3% year over year to $745.1 million. CFO Erik Weaver attributed the increase to “continued execution in our centers,” including higher average dues and stronger utilization of in-center businesses.
The company, which operates large-format fitness clubs with amenities like pools, spas and cafes, increased membership dues last year by roughly $10 to $30 per member. The change did not slow demand — membership and engagement have continued to climb.
A growing share of Life Time’s revenue is coming from in-center spending, which topped $191 million in the fourth quarter. Members are taking full advantage of additional personal training, spa services and food and beverage as they treat the space as a lifestyle destination.
Average revenue per center membership was $882, up 10.8%.
“It’s a super engaged membership model instead of a non-use membership model,” said Life Time Group Holdings CEO Bahram Akradi. “We are basically operating at optimal levels of that right now.”
Despite having far fewer locations than Planet Fitness, the company generates significantly more revenue, underscoring the higher spending power of its customer base.
“The model proved its resilience throughout a macro-challenged 2025 in which in-center revenue grew,” said Mizuho analyst John Baumgartner. “And see downside risks limited by a memberships skew favoring high-income households and differentiated club activities.”
The results suggest higher-income consumers remain relatively insulated from broader economic pressures and continue prioritizing discretionary wellness spending.
Planet Fitness: Sales grow, but outlook disappoints
The strength area of the new Planet Fitness at 226 Harvard Avenue in Allston.
Pat Greenhouse | Boston Globe | Getty Images
Planet Fitness also reported strong growth, adding 1.1 million new members in 2025 and delivering double-digit percentage revenue gains.
Investors, however, focused on its outlook, which fell short of Wall Street expectations. The company projected slower fiscal 2026 revenue growth of 9% and weaker same-store sales than expected at 4% to 5%, which raised demand concerns.
However, Planet Fitness remained positive about growth, saying the anticipated pullback in membership was temporary.
“Our join trends were impacted by the storms and cold weather in late January across many of our markets, and we experienced a slightly higher cancel rate last month than anticipated,” said Planet Fitness CFO Jay Stasz. “Notably, recent attrition trends are returning in line with our expectations.”
Planet Fitness has also been testing price hikes in some markets, which it expects to fully roll out in summer 2026. It’s also investing in new amenities like red light therapy and additional classes to increase revenue per member and attract younger members.
That strategy could support long-term growth, but some analysts are skeptical, saying the “guidance gap” between Planet Fitness’ results and Wall Street expectations is particularly frustrating.
“The company now faces a credibility hurdle,” said Stifel analyst Chris Cull. “Is 2026 guidance conservative, or are the out-year targets unrealistic? Until the company provides a clearer path to acceleration, we expect the stock will likely churn.”
A softened 2026 outlook suggested some uncertainty about how much further its core customers can stretch their spending.
The widening consumer divide
Together the results highlight a broader shift in the U.S. economy.
Higher-income consumers, reflected in Life Time’s performance, continue to absorb price increases and spend on premium experiences. Meanwhile, Planet Fitness suggest even though price-sensitive customers are engaged, they’re more reluctant to spend.
That’s not a problem unique to fitness and has appeared across industries. Airlines are racing to build out luxury offerings as higher-income travelers continue to spend. Meanwhile, fast-food companies are leaning on value meals to attract more price-sensitive customers, reinforcing the idea of a K-shaped economy.
Planet Fitness’ performance in the coming quarters could serve as an indicator of how much discretionary spending capacity remains for lower- and middle-income consumers.
William Blair analyst Sharon Zackfia lowered her firm’s projections for Planet Fitness’ 2026 member growth to 800,000 from 1 million given projected weakness in the first quarter, which typically accounts for 60% of full-year sign-ups. Still, the guidance did not dampen the firm’s optimism about the company.
“We reiterate our Outperform rating and continue to view the brand’s long-term outlook as robust given its industry-leading low-price/non-intimidating club format,” said Zackfia.
For now the fitness industry is offering a clear signal: Consumer spending remains strong, but is increasingly divided.
The extremely tense situation in the region due to the joint attacks of the US and Israel on Iran has increased investment interest in gold and silver.
According to the All Pakistan Sarafa Gems and Jewelers Association, the price of gold per tola has increased by Rs 10,000 to Rs 550,562.
The price of 10 grams of gold in Pakistan has increased by Rs 8,574 to Rs 447,018.
Along with this, the price of gold in the global market has increased by $ 100 to $ 5,278 per ounce.
With an increase of Rs 388, the price of one tola of silver has reached Rs 9,862.
According to experts, due to the global economic situation and the increasing interest of investors in gold, price fluctuations are likely to continue.
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