Good morning from the Financial Times.
Today is Friday, February 27th, and this is your FT News Briefing.
Netflix is walking away from the battle for Warner Bros.
Discovery.
And some tech companies can't buy semiconductors outright, so they're turning to rentals.
Plus, investors are using a workaround to dodge AI volatility.
So planning for the future is incredibly hard,
so investors are looking for insurance of whatever kind.
I'm Mark Filipino, and here's the news you need to start your day.
It looks like we have a winner in the bidding war to take over Warner Brothers' discovery.
Netflix said late on Thursday, it is not going to sweeten its offer to buy the company.
That decision to bow out paves the way for Paramount to triumph in its battle to take control of the storied Hollywood studio.
It comes after Warner Brothers earlier in the day declared Paramount's $31 per share offer to be,
quote, superior to Netflix's proposal.
It's a stunning turnaround for Paramount.
It first approached Warner Brothers last year about a takeover That kicked off a months long and brutal bidding war for the company.
Paramount's latest offer would cover the $2.8 billion termination fee owed to Netflix.
And oh yeah, the deal is for the entire business, which includes CNN, HBO, and other cable networks.
Netflix shares sword in after hours trade on the news.
The AI arms race has sparked a new kind of lending.