We're offering a 2-week trial of WrapPRO for $1. If you’ve been wanting to check out our full coverage, now’s the time. Greetings!Netflix had a busy Tuesday, adjusting its $83 billion offer for Warner Bros. Discovery to a more straightforward all-cash deal, followed by its fourth-quarter report in the shadow of a dismal stock drop in recent months. Netflix posted strong results, disclosing it had reached 325 million paid subscribers, up nearly 8% from 301.6 million customers it last reported at the end of 2024. Earnings and revenue both topped expectations for the year. Still, shares fell more than 4% in after-hours trading on the results, with the stock down just slightly during a day when the broader market sank amid fears of escalating tensions over President Trump's threat of tariffs over Greenland. Co-CEOs Ted Sarandos and Greg Peters largely stuck to the script, reiterating their confidence in the Warner Discovery deal getting regulatory approval and, most importantly for the exhibitors, that they would stick with the 45-day window for Warner Bros. films. The comments mark the first time the CEOs have discussed the deal since Paramount filed its lawsuit against Warner Bros. Discovery and threatened a proxy war. Paramount wasn't referenced on the conference call, which employs a unique structure where an executive reads pre-submitted analyst questions on a live video feed (i.e.: no surprise questions). Sarandos and Peters are likely feeling comfortable, with their all-cash offering backing Paramount into a corner. While Paramount CEO David Ellison will continue to insist his offer is superior and tout the easier regulatory path his transaction would have, the latest move by Netflix muddies his math, which requires you to believe that Discovery Global is essentially worthless. It's a harder case to make after WBD offered more financial information on the business, with a new estimated value range of $1.33 and $6.86 a share (as well as details on specific assets like CNN, see below). The new range is higher than what most analysts expect, unlike Paramount's range which offered a measly 50 cents a share based on the prospect someone would buy it. If you think the range for Discovery Global is too aggressive, keep in mind WBD shares were trading at $12.54 prior to news of Paramount’s offer in early September. It’s now more than double at $28.70, with Paramount offering $30 a share. To be sure, Discovery Global's shrinking cable TV business isn't in the same boat as Warner Bros.'s legendary studio and profitable streaming business. But these last few months have shown us that having a few interested parties can do wonders for the value of any company's share price. Roger Cheng 
Netflix posted strong fourth-quarter results, and Greg Peters and Ted Sarandos took care to stress that the company still has a lot of room for organic growth... 
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