Two stories will dominate this week. One is playing out in the Nevada desert, where 130,000 people are descending on Las Vegas for CES. The other is playing out in boardrooms and on shareholder lists, where the fate of Warner Bros. Discovery hangs in the balance.
The visible debate is about technology and entertainment. The real story is about power—who has it, who wants it, and what they're willing to do to get it.
Paramount's hostile tender offer for Warner Bros. Discovery has been extended to January 21. But the real action is this week. The WBD board meets to formally reject the amended bid—despite Larry Ellison's $40.4 billion personal guarantee and a breakup fee raised to $5.8 billion to match Netflix. The board has already called the $108.4 billion bid "illusory" and backed Netflix's $82.7 billion friendly offer instead.
But here's what makes this interesting: President Trump has inserted himself into the decision. He called Netflix co-CEO Ted Sarandos "fantastic"—then warned that a combined Netflix-Warner would have "a very big market share." He also said he opposes any deal where WBD keeps CNN. The Ellisons are Trump allies. The outcome is now neck and neck.
This is the first major hostile takeover attempt in Hollywood in decades. The outcome will tell us whether power still resides in the boardroom—or whether it's shifted to whoever can write the biggest check and has the right friends in Washington.
This Week
CES opens. Bosch, LG, Hisense, Hyundai press conferences. Congress returns.
Watch for how many companies lead with AI vs. actual products.
Lenovo keynote at the Sphere. Sony Honda unveils the Afeela 1.
Sony's move into cars is a power play against traditional automakers.
WBD board meets to reject Paramount's amended bid.
The formal rejection sets up a three-week showdown before the Jan 21 tender deadline.
CES final day. Initial jobless claims.
Low claims give the Fed cover to keep rates high.
December jobs report.
A strong report could spook markets worried about inflation.
The Signal
Watch for whether Paramount sweetens its bid after WBD's rejection.
The Ellisons haven't raised the base offer above $30/share despite adding a $40 billion personal guarantee. Wall Street expects them to go higher. If they don't, it signals they're bluffing. If they do, the question becomes: will Netflix counter? Analysts say the race is "neck and neck." The next two weeks will determine whether hostile takeovers are truly back in Hollywood.
Continuing Stories
The Hollywood Hostile Takeover. David Ellison texted David Zaslav on December 4: "It would be the honor of a lifetime to be your partner." Zaslav never responded. Hours later, Netflix announced the deal. The Ellisons went hostile. The WBD board accused them of "misleading" shareholders. Now Trump is weighing in, and WBD owes Netflix a $2.8 billion breakup fee if it switches lanes. This isn't just a business dispute anymore. It's personal, political, and expensive.
AI Spending. CES will be wall-to-wall AI announcements. The question isn't whether AI is real. It's whether the spending frenzy is sustainable. Last year, Sam Altman admitted that investors are "overexcited about AI." Then he kept raising money. Watch for cracks in the narrative. The first major cloud provider to announce a capex cut will be the signal that the party is ending.
The Unwritten Rule
Observation: In a crisis, people look for leadership. But what they're really looking for is clarity.
The Rule: The person who provides the clearest narrative—even if it's not the most accurate one—often wins.
Implication: When you're in a complex situation, don't just communicate facts. Frame a narrative. The side that tells the most compelling story about what's happening and why will have an outsized influence on the outcome.
If you love The Closer, check out Whale Hunting, where the team at Project Brazen explore the hidden world of money and power.
