BREAKING: The world is now experiencing its largest oil supply shock in history, losing nearly 20 million barrels of oil supply per day.
Top oil supply shocks:
1. Hormuz Closure (NOW): -20 million b/d
2. Iranian Revolution (1978): -5.5 million b/d
3. Yom Kippur War (1973): -4.5 million b/d
4. Iraq-Kuwait War (1990): -4.3 million b/d
5. Iran-Iraq War (1980): -4.0 million b/d
6. Russia-Ukraine War (2022): -2.0 million b/d
The current supply shock is roughly the same size as the top 2-6 COMBINED.
SCOOP: As reported @paramountco@Skydance is now looking to launch a hostile bid for @wbd because it feels its $30 a share all cash offer is actually higher than what @netflix offered in terms of cash, stock and the value of the spinoff of the cable business--sources. story developing
Full details of Netflix's acquisition of Warner Bros:
> enterprise value of ~$83B
> equity value is $72B (~20% premium on stock)
> deal closes in Q3 2026 when WBD spins off cable assets (CNN, Food Network) into separate public co
> Netflix will keep HBO Max around and theatre releases will also still happen
> Netflix will own the Warner TV/Film studios adding IP such as The Big Bang Theory, The Wizard of Oz, DC Universe, Harry Potter and HBO (The Sopranos, Game of Thrones, Succession, The Wire, Silicon Valley)
Netflix expects $2-3B cost savings per year.
This will almost certainly receive anti-trust attention and Netflix has agreed to a $5.8B breakup fee to Warner Bros Discovery if the deal falls through.
Netflix really became HBO before HBO could become Netflix.
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Link: https://t.co/KMasTDJCfC
From the Financial Times:
“Yields on the bonds of groups including L’Oréal, Airbus and Axa have sunk below those on French government debt of similar maturity in recent weeks, according to data compiled by Goldman Sachs, in a sign that investors may see them as a safer bet.”
More to follow on the why—and the so what—of corporate bond spreads trading inside those of their sovereign counterparts.
#economy #markets #debt #france @FT