deal

If Zelensky’s Claim Of Using Homegrown Ballistic Missile For First Time Is True, It’s A Big Deal

Ukraine’s President Volodymyr Zelensky has announced that his country has begun using homegrown Sapsan (which means peregrine falcon) ballistic missiles in combat against Russia. While the claim may be disinformation, such a weapon would give Ukraine a highly valuable new standoff strike option, unlike any other in its inventory. It would also not be subject to any foreign restrictions on its use, as it continues to be the case with many longer-ranged weapons supplied by the United States and other Western partners.

Ukraine’s Sapsan ballistic missile is now in combat, Zelenskyy confirms. Russians often mistake strikes for cruise missiles

480-kg warhead — more than double ATACMS. Speed: 5.2 Mach. Expert verdict: “There’s no way they can intercept it” ⤵️

🔗 https://t.co/QE3tKU0Ioy pic.twitter.com/YhOQGJBcBH

— Euromaidan Press (@EuromaidanPress) December 10, 2025

“Ukraine is already using the Neptune, the long-range Neptune, the Palyanytsya, the Flamingo. And also, the Sapsan, I’ll be honest — we’ve begun using it,” Zelensky told journalists. The Ukrainian president added that he would not disclose how many of these weapons have been deployed, or what they targeted.

“Because for now we don’t want the enemy to know all the precedents and all the details,” Zelensky added.

As well as the Sapsan, Zelensky referred to four domestically produced weapons that we already knew had been used operationally. These are the land-attack version of the Neptune anti-ship cruise missile, the extended-range version of the same weapon, known as the Long Neptune, the Palyanytsya jet-powered missile/drone hybrid, and the very long-range Flamingo cruise missile.

President Zelensky showed the Palianytsia drone missile, which was first revealed yesterday.

All of its specifications are classified. What is known from the information in the video:

▪️ “Palianytsia” has a turbojet engine;
▪️ is launched from a ground platform;
▪️ the… pic.twitter.com/GyIEVFw52Q

— Slava 🇺🇦 (@Heroiam_Slava) August 25, 2024

It’s clear, too, that Zelensky wants to promote confusion among Russian authorities as to which of these weapons are being used in any given strike.

“There are many cases when our enemy believes a strike was carried out with a Neptune… And let them continue thinking that,” he added.

With that in mind, we should also consider the possibility that the Sapsan has not actually been used in combat. So far, there doesn’t seem to be any confirmed evidence of wreckage from impact sites in Russia, although the Russian Ministry of Defense has previously claimed that it successfully shot down examples of Ukrainian ballistic missiles over Crimea.

On the other hand, using the Sapsan in combat would certainly make sense, given Ukraine’s extensive efforts to ramp up domestic arms production, with a particular focus on the ability to hit targets deeper inside Russia.

As well as the aforementioned long-range missiles, Ukraine has also made use of an extensive array of domestically produced long-range kamikaze drones, as well as other munitions that blur the line between those weapons and traditional cruise missiles, like the Peklo ‘missile drone’.

As for Ukraine’s domestic ballistic missile program, the results remain much less clear, but we have been waiting to see a weapon of this kind deployed for a long time now. Perhaps, its development has also been accelerated by help from Western partners.

In August of 2024, Zelensky announced the first successful test of a new domestically developed ballistic missile, now understood to be the Sapsan.

Ukraine conducted the first sucessful test of a domestic-produced ballistic missile, Ukrainian President Zelensky announced on Tuesday. pic.twitter.com/Z4t675mQ27

— Status-6 (Military & Conflict News) (@Archer83Able) August 27, 2024

While details of the Sapsan remain scarce, the missile is closely related to the Hrim-2 (also written Grim-2 and which translates as Thunder-2 in English).

In fact, the Hrim-2 was developed as an export version of the original Sapsan, which had been intended for Ukrainian use.

The origins of the Hrim-2 and its immediate predecessors date back to the late 2000s, with development apparently accelerated after Russia’s annexation of the Crimean peninsula in 2014. A rocket motor test associated with the design occurred in 2018, and the two-round, 10-wheeled transporter-erector-launcher (TEL) for the missile, or at least a mockup, appeared at a parade that same year.

An image from a 2018 test of a rocket motor tied to the development of the Hrim-2/Sapsan missile. Government of Ukraine via Mil.in.ua
An artist’s rendition of the Hrim-2 TEL (as offered for export) from the Ukroboronexport webpage with the 2015 copyright date. Ukroboronexport

You can read more about what is known about the Hrim-2 and its development in this past War Zone piece, which followed speculation that Ukraine might have employed some of those missiles in an attack on Russia’s Saki Air Base in 2022.

While we don’t know what the Sapsan missile looks like, it is likely broadly similar to what we’ve seen of the Hrim-2 and preceding related designs, which, in turn, bear a superficial resemblance to Russia’s Iskander-M.

A picture of a test article associated with the development of the Hrim-2/Sapsan or one of their predecessors. Pivdenne Design Bureau
A Russian Iskander-M short-range ballistic missile. Russian Ministry of Defense

In terms of performance, the Hrim-2 reportedly has a range of at least 174 miles (280 kilometers) and possibly up to 310 miles (500 kilometers), and the same could well hold true for the Sapsan.

On the other hand, in 2023, Ukraine’s then-Minister of Defense Oleksii Reznikov also said that the country had a new long-range missile in development that could have a range of up to 620 miles (1,000 kilometers). This could also have been a direct reference to the Sapsan.

Regardless, it would seem highly likely that the Sapsan is in the category of short-range ballistic missiles (SRBM), which are traditionally defined as having maximum ranges of no more than 620 miles (1,000 kilometers).

Since the full-scale invasion, Ukraine has had only limited access to ballistic missiles, and none of these have come from domestic production.

The Ukrainian Armed Forces have been employing Soviet-era Tochka-U SRBMs, as well as even older Tochka types, both of which have the NATO reporting name SS-21 Scarab. These only have maximum ranges of 43 miles (70 kilometers) and 75 miles (120 kilometers), respectively, a fact that spurred the original development of the Sapsan/Hrim-2.

Точка-У: как ракетные удары ВСУ останавливают армию России в Украине | Донбасс Реалии




Furthermore, Ukraine has been receiving small numbers of ATACMS from the United States, which it has used to good effect.

Details from missile debris shown by Russia confirm Ukraine launched ATACMS at Voronezh region on November 18, marking the first use of U.S.-made missiles on Russian territory during Trump’s presidency. According to the Russian MoD, S-400 and Pantsir-S1 systems helped repel the… pic.twitter.com/8SeQCo9OEO

— NOELREPORTS 🇪🇺 🇺🇦 (@NOELreports) November 19, 2025

However, in common with additional types of ground and air-launched standoff munitions supplied to Ukraine by the U.S. government and other foreign partners, there are strict limitations imposed on the use of those weapons on targets deeper inside Russia.

Putting all this together, the utility of a ballistic missile of domestic production becomes very clear, as part of a multi-pronged effort to strike key targets outside of Ukraine’s borders (as well as further beyond the front lines, in Russian-controlled territory).

As we have noted in the past, a new source of ballistic missiles that are more capable and longer ranged than the Tochka family, and that are not subject to any Western restrictions like ATACMS, would be a key breakthrough for Ukraine.

A battery of three Ukrainian Tochka-U SRBMs fly off towards their Russian targets, as a Ukrainian soldier with a Stinger MANPADS keeps watch for enemy drones…🔥🇺🇦 https://t.co/68LnGr0W06

— Jimmy Rushton (@JimmySecUK) June 23, 2022

While long-range drones, cruise missiles, and drone/missile hybrids are valuable, ballistic missiles offer the advantage of very high speeds in the terminal phase of flight. This makes them much harder for enemy air and missile defenses to defeat. Ballistic missiles with unitary high-explosive warheads can also burrow down deeper into hardened targets or impart greater force on reinforced structures above ground, like bridges, thanks to that speed.

While we don’t know how Ukraine has employed Sapsan so far, provided that it has, a likely scenario would see the ballistic missiles combined with other types of missiles and drones in complex attacks to make it even harder for enemy forces to deal with. This would follow the same pattern that Russia routinely uses in large-scale attacks on Ukrainian targets.

If Ukraine is able to produce the Sapsan in meaningful numbers, and provided that it works to its full potential, the results could be significant, if it’s anything like the precedent set by Ukraine’s employment of American ATACMS.

Seems like 🇺🇦did another ATACMS strike near Kuban, Luhansk.

Action starts at 03:50. A dud and 3 hits within a minute. pic.twitter.com/aGP4cWKY07

— JB Schneider (@JohnB_Schneider) May 1, 2024

Even with the restrictions imposed by the U.S. government, Ukrainian ATACMS strikes have led to major changes in Russian operating procedures, especially at airbases within range of those missiles. It has also forced Russia to move additional air and missile defenses to the theater, including the S-500, the most advanced surface-to-air missile system in the country’s inventory today.

At this point, we still need to await independent verification of the Sapsan ballistic missile being used in combat. However, the value of such a weapon for the Ukrainian military is unquestionable, providing a powerful new vector for launching standoff strikes into Russia without any foreign restrictions. Provided it is being used operationally, we likely won’t have to wait too much longer for positive confirmation of this.

Contact the author: thomas@thewarzone.com

Thomas is a defense writer and editor with over 20 years of experience covering military aerospace topics and conflicts. He’s written a number of books, edited many more, and has contributed to many of the world’s leading aviation publications. Before joining The War Zone in 2020, he was the editor of AirForces Monthly.




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Homeland Security signs deal to buy 6 planes for deportations

Department of Homeland Security Secretary Kristi Noem took a tour of CECOT in Tecoluca, El Salvador, in March. This week, the Department of Homeland Security signed a contract to buy six planes with which to deport people. File Photo by Tia Dufour/U.S. Department of Homeland Security | License Photo

Dec. 10 (UPI) — The Department of Homeland Security has inked a deal to buy six Boeing 737 planes to deport immigrants.

U.S. Immigration and Customs Enforcement has used charter planes in the past for deportation flights, but this deal will allow it to operate its own fleet.

The money comes from the $170 billion that Congress authorized for Trump’s immigration control plans in a spending bill earlier this year, according to the Washington Post.

In late October, DHS announced it had deported nearly 600,000 people this year.

DHS spokesperson Tricia McLaughlin said in a statement to The Post that the planes would save money “by allowing ICE to operate more effectively, including by using more efficient flight patterns.” She said it would save $279 million in taxpayer dollars, though she didn’t elaborate.

“We are delighted to see The Washington Post is highlighting the Trump administration’s cost-effective and innovative ways of delivering on the American people’s mandate for mass deportations of criminal illegal aliens,” she said in a statement.

She added that Trump and Homeland Security Secretary Kristi Noem “are committed to quickly and efficiently getting criminal illegal aliens OUT of our country.”

In November, The Wall Street Journal reported that Noem and her chief adviser, Corey Lewandowski, directed ICE officials to buy 10 planes from Spirit Airlines for deportation flights and their own travel. But Spirit didn’t own the planes, which did not have engines.

The DHS contract is with Virginia-based Daedalus Aviation, created in February 2024, according to corporate records, The Post reported. Daedalus’s website says it “offers a full range of commercial and charter aviation services” and “provides comprehensive responsive flight operations tailored to the unique needs of each mission.”

John Sandweg, former acting director of ICE under President Barack Obama, said the purchase shows that ICE has a lot of money, but isn’t likely to be cost-effective.

“It’s so much easier to issue a contract to a company that already manages a fleet of airplanes,” Sandweg told The Post. “So this move I’m surprised by because what the administration wants to accomplish, by and large, can be accomplished through charter flights already.”

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WTA Tour and Mercedes-Benz sign potentially largest partnership deal in women’s sport

The Women’s Tennis Association has announced a long-term partnership with Mercedes-Benz which has the potential to be the largest in women’s sport.

The German car manufacturer will become the premier partner of the WTA and pour $50m (£37.5m) per year into women’s tennis for up to 10 years.

The deal has been described as the “most significant” in the WTA’s history, and could ultimately be worth up to half a billion dollars (£375m).

The National Women’s Soccer League in America signed a $240m (£180m) four-year media rights deal in November 2023, while Nike has invested $350m (£262m) across multiple women’s football leagues.

Announced on Wednesday, the WTA deal will help with the tour’s commitment to have equal prize money at events where both men and women feature by 2027 and at non-combined events by 2033.

Equal prize money was one of the key goals when the WTA was founded in 1973.

American tennis great Billie Jean King, who founded the WTA and was its first president, said the deal shows the tour “continues to lead the way in women’s sport”.

“Our mission statement when we founded the WTA was that any girl born in this world, if she was good enough, would have a place to compete, be respected and make a living playing tennis,” King told BBC Sport.

“This is a real partnership and Mercedes are in it for the long term.

“Seeing a brand like that stand with us sends a message that echoes far beyond tennis.”

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Take a swing? Two Buss brothers consider investing in MLB’s Athletics

Could two members of the Buss family add some green and gold to their purple and gold?

Joey and Jesse Buss, fired last month as Lakers executives, have explored pursuing an ownership stake in baseball’s Athletics, according to two people familiar with the discussions but not authorized to speak publicly about them.

The discussions were described as preliminary, and it is unclear whether they might result in a deal. Jesse Buss did not reply to a message seeking comment.

In September, Joey and Jesse – sons of legendary Lakers owner Jerry Buss – announced the launch of Buss Sports Capital “to pursue high-impact investment opportunities across the global sports ecosystem.” The announcement said Buss Sports Capital would aim “to partner with forward-thinking professionals to unlock new opportunities in professional sports.”

Joey and Jesse Buss retain their stakes of Lakers ownership. In October, Dodgers owner Mark Walter closed his purchase of majority ownership in the Lakers, in a deal that valued the Lakers at $10 billion. Walter tasked Dodgers president of baseball operations Andrew Friedman and former general manager Farhan Zaidi to assess the Lakers’ front office operations.

Last month, Joey Buss was dismissed as vice president of research and development and Jesse Buss as assistant general manager.

The A’s left Oakland after the 2024 season. They plan to move from their temporary Sacramento home to Las Vegas in 2028, and construction there is underway on an enclosed 30,000-seat stadium originally estimated to cost $1.5 billion. In July, team owner John Fisher told the Nevada Independent the cost had risen into “the $2 billion range.”

Fisher obtained $380 million in public funding. He is responsible for the balance of construction costs. In 2023, The Times first reported that Fisher hoped to generate $500 million toward stadium costs by valuing the A’s at $2 billion and selling 25% of the team to minority investors.

Fisher has since used a higher valuation in soliciting investors. CNBC last year estimated the A’s franchise value at $2 billion, Forbes at $1.8 billion, and Sportico at $1.6 billion.

The A’s have posted four consecutive losing seasons. They say they are rebuilding toward their planned 2028 arrival in Las Vegas, and they have an impressive core of position players, including first baseman Nick Kurtz — the American League rookie of the year — shortstop Jacob Wilson, catcher Shea Langeliers, designated hitter Brent Rooker, and outfielders Lawrence Butler and Tyler Soderstrom.

Times staff writer Broderick Turner contributed to this report.

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The Netflix and Warner Bros. tie-up is not a done deal. What could stop this merger

It was just last Friday that Netflix announced a blockbuster $72-billion deal to acquire Warner Bros. film and television studios, HBO and HBO Max — a tie-up that could fundamentally change Hollywood.

Yet on Monday, the stakes got even higher, as Paramount swooped in with a $78-billion hostile takeover bid it plans to take directly to Warner Bros. Discovery’s shareholders.

Paramount Chief Executive David Ellison called the Netflix deal an “inferior proposal,” saying in a statement that it “exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process.”

It all sets the stage for a long and potentially bruising fight. And the Netflix deal would have to overcome some significant regulatory hurdles, experts told me.

“This is a deal that never should have left the boardroom,” said David Balto, an antitrust attorney and a former policy director at the Federal Trade Commission during the Clinton administration. “The competitive concerns are profound. This is going to face a lot of opposition at the Justice Department.”

For one, antitrust regulators are expected to scrutinize the market share that would be controlled by a combined Netflix and HBO Max.

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Netflix outlasted its rivals in the so-called streaming wars to become the dominant platform in a crowded space. That position has led to concern that gobbling up HBO Max would give Netflix outsized power in the streaming space — potentially more than 30% — which would cross a threshold under antitrust law, according to a recent letter from Rep. Darrell Issa (R-Vista) to Atty. Gen. Pam Bondi and Federal Trade Commission Chairman Andrew N. Ferguson.

Netflix executives have argued that analysis of its market share should include YouTube.

In a UBS investor conference Monday, Netflix Co-Chief Executive Greg Peters pointed to Nielsen data, which show Netflix’s shares of U.S. TV viewing is still behind YouTube‘s. Netflix represents just 8% of U.S. TV viewing in October, behind YouTube’s 12.9%.

If Netflix were to combine with Warner Bros. Discovery’s 1.3% share of U.S. TV viewing, its 9.2% would still be less than that of YouTube. (Other Nielsen data show that Warner Bros. Discovery channels have greater viewership, but Netflix is only interested in one channel, HBO).

“We think there’s a strong fundamental case here for why regulators should approve this deal,” Peters said. (The deal’s overall value is $82.7 billion due to the absorption of debt)

But who would regulators consider a competitor to Netflix? Is it YouTube, with its emphasis on shorter-form content? Or would the main competitors be other streaming services with films and series, like Disney+, Paramount+ and Peacock?

“The analytical issue there is, how do you define the market?” said George Hay, a professor of law at Cornell University and former director of economics in the Justice Department’s antitrust division. “What is their combined market share, what do they compete in and what are the alternatives available to consumers?”

The consumer angle would also invite involvement from the Federal Trade Commission. With a shrinking marketplace, the agency would likely investigate whether this could increase streaming prices for customers.

“What keeps Netflix honest is knowing there’s an HBO Max that’s right over its shoulder,” Balto said. “But once they get rid of that, they can lead the easy life, and the need to cut prices or provide better services or bid aggressively for film content — all of that will be diminished.”

Meanwhile, Hollywood unions and the Cinema United trade group have also raised concerns that a Netflix ownership of Warner Bros. would lead to fewer films being released in theaters, due to the company’s longstanding resistance to traditional movie releases. Netflix has said it would honor Warner Bros.’ theatrical release commitments and that future films without those existing deals will also go to theaters.

Beyond the U.S. concerns, Netflix would also need the blessing of regulators across the globe, and could be challenged by even state attorneys general who might have a significant number of entertainment workers in their areas who would question the effect on industry jobs.

Then, there’s the politics of it all.

President Trump himself has said he “would be involved” in his administration’s decision to bless any deal and that the combined market share of Netflix and Warner Bros. “could be a problem.”

As my colleagues Meg James and Stacy Perman have reported, Trump has openly favored Paramount’s bid for Warner Bros. Discovery, though word of Paramount backer Larry Ellison’s close ties with Trump dampened enthusiasm for the bid in Hollywood. Trump’s son-in-law, Jared Kushner, is now also one of the investors participating in the renewed Paramount bid.

Despite this involvement, the Trump administration may not have the final say on the deal, just as in the case of the AT&T deal for Time Warner.

For his part, Netflix Co-Chief Executive Ted Sarandos has also been trying to make his own case to Trump and ventured to the White House last month, Bloomberg reported.

“It’s a case in which the political issues are going to play a role,” Hay said. “They’re so front and center, and Trump has shown an inclination to get involved.”

About the only thing that’s clear is that it’s not going to be a quick process.

“This entire matter is not going to get resolved in a hurry,” said Corey Martin, managing partner at Granderson Des Rochers. “The resolution of this matter is very likely to take place over months and potentially years, and not days and weeks.”

Stuff We Wrote

Film shoots

Stacked bar chart shows the number of weekly permitted shoot days in the Los Angeles area. The number of weekly permitted shoot days in the area was down 40% compared to the same week last year. This year, there were a total of 166 permitted shoot days during the week of December 01 - December 07. During the same week last year (December 02-08, 2024), there were 277.

Number of the week

sixty-three million dollars

Universal Pictures and Blumhouse-Atomic Monster’s horror sequel “Five Nights at Freddy’s 2” ruled the domestic box office this weekend with a $63 million haul in the U.S. and Canada. While it doesn’t surpass the first movie’s $80 million opening weekend in 2023, it’s a massive boost for theaters, which have seen a string of slower months.

Menacing animatronic figures weren’t the only thing that brought moviegoers to theaters this weekend. Disney’s animated “Zootopia 2” brought in about $43 million domestically in its second outing. Globally, the sequel has now brought in a total of $915 million.

The strong recent showings for films such as “Zootopia 2” and “Wicked: For Good” have helped push 2025’s year-to-date domestic box office total to a little over $8 billion, up just barely — 0.8%, in fact — compared with last year.

Finally …

My colleague, Jeanette Marantos, wrote about the 105th anniversary of Altadena’s Christmas Tree Lane lighting ceremony and festival this past weekend, a bittersweet memorial for the community after a year of heartbreak.

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Dodgers downplay Teoscar Hernandez rumors, assess bullpen options

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It’s been an offseason of few acquisitions thus far for the Dodgers.

So much so that, on the first day of MLB’s annual winter meetings at the Signia by Hilton Orlando on Monday, the most intriguing rumor surrounding the team had to do with a potential subtraction from their big-league roster.

According to multiple reports, Teoscar Hernández has come up in the Dodgers’ trade talks with other teams this winter. USA Today went as far as saying the club was “shopping” the two-time All-Star, who is entering the second season of the three-year, $66-million deal he signed last offseason.

However, both manager Dave Roberts and general manager Brandon Gomes downplayed that notion while addressing reporters on Monday.

Dodgers right fielder Teoscar Hernandez hits a sacrifice fly to score Dodgers' Will Smith during the World Series.

Dodgers right fielder Teoscar Hernández hits a sacrifice fly to score Dodgers’ Will Smith during the Game 7 of the World Series against the Toronto Blue Jays on Nov. 1.

(Robert Gauthier/Los Angeles Times)

“Teo certainly fits [our roster still],” Roberts said. “He’s helped us win two championships. He’s one of my favorites.”

“That doesn’t feel likely,” Gomes added of the possibility of trading Hernández. “Obviously, you can never say never on those types of things. I know that’s come up [in reports]. But that’s not something we anticipate at all.”

The idea of the Dodgers trading Hernández has felt like a long shot from the start. Though the 33-year-old slugger suffered an inconsistent and injury-plagued regular season in 2025 — both at the plate, where he had 25 home runs but hit only .247, and especially defensively, where he had several notable lapses after moving to right field — the 10-year veteran has made crucial contributions in each of the Dodgers’ two World Series runs the last couple years, and has served in a mentor role to young players in the clubhouse; none more so than Andy Pages.

Granted, moving Hernández could help the Dodgers get younger, which has been a goal for the front office this offseason as they try to navigate their aging and expensive roster. And his salary could be repurposed if the team were to make a splashier free-agent signing.

But for now, the Dodgers continue to express belief in their current core, with Roberts noting Monday that “we’re very confident with where the roster is right now” and that “there’s really no big splash we feel needs to be made.”

Plus, moving Hernández would also only further exacerbate the team’s pre-existing need for outfield help, as the club continues to evaluate both the free agent market (where players such as Cody Bellinger or Harrison Bader figure to be better, and more affordable, fits than a likely $400-million signing of top free-agent option Kyle Tucker) and trade possibilities (such as Brendan Donovan or Lars Nootbaar of the St. Louis Cardinals, Jarren Duran or Wilyer Abreu of the Boston Red Sox or — in a less likely scenario — Steven Kwan of the Cleveland Guardians).

Roberts did leave the door open to potentially moving Hernández back to left field, where he spent the majority of 2024 for the Dodgers before shifting over to his more natural right field position last year.

Still, in Roberts’ eyes, Hernández’s defense was “at least average” in right after an August series in Colorado when he made a couple particularly glaring mistakes on fly balls. His career-long defensive metrics have also been stronger in right field than left.

“I do think that with the versatility [of our roster] and how we potentially shape this roster, there’s some options,” Roberts said. “But right now, he’s our right fielder.”

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Paramount’s $78-billion bid for Warner includes Kushner backing

Paramount is refusing to accept defeat in the Warner Bros. Discovery auction, launching a $78-billion hostile takeover of its rival Monday after being spurned last week in the bidding.

The move comes four days after Warner’s board unanimously selected Netflix as the winner.

Paramount has beefed up its offer with backing from Middle Eastern sovereign wealth funds, including Saudi Arabia, a Chinese firm and President Trump’s son-in-law Jared Kushner’s investment firm Affinity Partners, according to a Monday regulatory filing.

The presence of a member of the president’s family in a proposed corporate takeover, which includes news channel CNN and the historic Warner Bros. properties, immediately complicates an already fraught regulatory picture.

Last week, Netflix had offered $72 billion — or $27.75 a share — for a big chunk of the company: Warner Bros. film and television studios, which hold the rights to Batman, Bugs Bunny and Harry Potter, the expansive lot in Burbank and HBO and HBO Max. Additionally, Netflix would take on more than $10 billion in Warner Bros. debt for a total deal value of $82.7 billion.

Paramount, backed by billionaire Larry Ellison’s family, had entered the final week of the auction with a $25 a share, all-cash offer for all of Warner Bros. Discovery, according to people involved in the auction who were not authorized to comment. In the final hours, Paramount upped its offer to $30 per share — but still came away empty-handed.

Paramount confirmed Monday that it submitted its $30-per-share offer just a few hours before Netflix was announced as the winner.

“We never heard back,” Paramount Chairman and Chief Executive David Ellison told CNBC on Monday morning. “We’re really here to finish what we started.”

Despite the decision by Netflix and Warner Bros. Discovery to pursue a deal, Paramount is directly appealing to shareholders to vote on their offer in what is commonly known as a hostile takeover.

Historically, hostile takeover bids are difficult to pull off, but there have been some notable exceptions, including Elon Musk’s $44-billion acquisition of the company formerly known as Twitter in 2022. Two decades ago, Comcast failed in a hostile takeover bid for Walt Disney Co.

Warner Bros. Discovery said Monday that its board would “carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix.”

Warner’s board remains supportive of Netflix’s bid, the company said. Shareholders will receive recommendations from the Warner board within 10 business days. The company has long wanted the auction to be wrapped up by Christmas.

“Warner Bros. Discovery stockholders are advised not to take any action at this time with respect to Paramount Skydance’s proposal,” the company said in a statement.

Paramount began its pursuit of Warner in mid-September. It is now bypassing Warner’s board, management and bankers and appealing directly to shareholders in a hostile takeover effort. In a statement, Paramount said its bid was a “superior alternative” to Netflix’s, which will face a rigorous and lengthy antitrust review.

Netflix co-Chief Executive Ted Sarandos said Paramount’s move was “entirely expected.”

“We have a deal done and we are incredibly happy with the deal,” Sarandos said at a UBS conference, adding that he believes Netflix’s takeover of the historic company would be great for shareholders, consumers and Hollywood workers. “We’re superconfident we’re going to get it across the line and finish.”

Already, the biggest weakness in Netflix’s deal was concern that the tech company may not be able to win regulatory approval. The company has more than 300 million streaming subscribers worldwide, and adding HBO Max would more than double the number of subscribers for competing video-on-demand subscription services.

In a statement, Paramount called Netflix’s offer “inferior,” one that would expose Warner shareholders “to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome.” Paramount has long counted on its warm relationship with President Trump to smooth the regulatory process, at least in the U.S.

Warner Bros. Discovery continues to believe that Netflix submitted the best offer.

Netflix is not buying Warner’s basic cable channels, including CNN, TBS, Food Network and TLC, and Warner figures it can spin off those assets into a separate company, Discovery Global, that would be worth about $3 to $4 a share.

When adding the Discovery Global value with Netflix’s price of $27.75 a share, Warner believes that its shareholders will come away with more than $31 a share for the company — more than what Paramount has offered.

Netflix offered a cash and stock deal. On Friday, the company said it would take a year to 18 months to gain the necessary regulatory approvals. Paramount is banking on investors being concerned about a possible regulatory fallout with the Netflix deal.

“Look, we’re sitting on Wall Street, where cash is still king,” Ellison told CNBC. “We are offering shareholders $17.6 billion more cash than the deal that they currently have signed up on Netflix. We believe when [Warner shareholders] see what is currently in our offer, that that’s what they’ll vote for.”

Since mid-September, Paramount has submitted six bids for all of Warner Bros. Discovery.

Trump said Sunday that Netflix’s deal to buy Warner Bros. Discovery “could be a problem” because of the size of the streaming service’s combined market share. Trump said he “would be involved” in his administration’s decision whether to approve any deal.

Paramount said its $30 per share, all-cash offer represents a 139% premium to Warner’s $12.54 stock price on Sept. 10, the day before Paramount’s pursuit was leaked in the media. With the absorption of Warner’s cable channels and its heavy debt load, the Paramount deal would have an enterprise value of $108.4 billion.

That’s roughly what AT&T paid to buy the company, then called Time Warner Inc., in 2018 after spending nearly two years fighting in court with the first Trump administration.

A federal judge finally cleared the way for AT&T’s takeover, but after three years the phone company wanted to flee Hollywood and made a deal with Discovery’s David Zaslav, allowing his smaller company to take over in 2022.

“The Trump card is the best card Paramount-Skydance has but it could backfire in multiple directions,” New Street Research media analyst Blair Levin said Monday in a note to investors. “As they say in Hollywood, ‘stay tuned.’”

Warner and Netflix could claim that Trump’s Justice Department, if it seeks to intervene, was trying to squash their deal simply because of politics. The inclusion of Kushner in the deal also could open the door to conflict-of-interest arguments.

“Courts, and the public, in the past, have regarded Presidential involvement in antitrust challenges as problematic,” Levin wrote in his note.

Paramount’s 11th-hour offer for Warner contained “opaque” details about its financing, a person involved in the auction who was not authorized to speak publicly told The Times over the weekend. The fuzzy nature of Paramount’s backers gave the Warner board pause in contrast to the Netflix offer, which spelled out its financing, the person said.

In a Securities & Exchange Commission filing Monday, Paramount disclosed that Larry Ellison’s family has provided an $11.8-billion commitment. An additional $24 billion would come from three sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi.

The controversial Chinese tech firm Tencent would provide an additional $1 billion, Paramount said. It said RedBird Capital Partners, an investor in Paramount, and Kushner’s Affinity Partners would also provide an undisclosed level of debt financing.

When asked about his son-in-law’s involvement in the Paramount bid, Trump told reporters at the White House: “I don’t know. I’ve never spoken with him about that. He’s really trying to work on Gaza.”

Should Paramount prevail, it would confront a heavy debt load that would bring more layoffs in an industry already reeling from downsizing. “As with Netflix, Paramount’s expected hostile bid for WBD raises significant concerns for our members and the industry,” a spokesperson for the Directors Guild of America said in a statement.

Just like with the AT&T deal for Time Warner, the Trump administration may not have the final say. If the U.S. Justice Department sues to block the Netflix deal, the matter will go before a federal judge.

However, Paramount hired Trump’s former antitrust regulator — Makan Delrahim — in the hope of steering a successful regulatory review. Delrahim joined Paramount in October as its chief legal officer.

“We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry,” David Ellison said in a statement. “We believe they will benefit from the enhanced competition, higher content spend and theatrical release output, and a greater number of movies in theaters as a result of our proposed transaction.”

Paramount’s tender offer is set to expire Jan. 8, 2026, unless it’s extended.

Shares of Warner Bros. jumped 4.4% on Monday to $27.23. Paramount gained 9% to $14.57 a share while Netflix lost 3.4% to $96.79.

Times staff writers Wendy Lee and Stephen Battaglio contributed to this report.

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Netflix shares drop after Paramount launches hostile takeover bid

Netflix shares dipped Monday after Paramount announced a hostile takeover bid, fueling worries on Wall Street that the streaming giant may not be able to pull off its audacious acquisition.

Netflix stock closed down nearly 3.5% to $96.79 a share after Paramount moved to take its case directly to Warner Bros. Discovery shareholders, offering $30 a share in a deal valued at $78 billion for the whole company. Last week, Netflix said it reached an agreement with WBD to buy its film and TV studios, Burbank lot, HBO and HBO Max for $27.75 a share, a $72-billion offer. Netflix would also take on more than $10 billion in Warner Bros. debt, for a deal value of $82.7 billion.

On Monday, analyst Jeffrey Wlodarczak, CEO of Pivotal Research Group, downgraded his rating on Netflix stock from buy to hold, citing concerns that Paramount’s bid could increase the price Netflix could pay for the WBD assets. Regulatory issues may also change the terms of the deal, such as Netflix giving up HBO to a rival, Wlodarczak said. “The question is, what modifications might they have to make?” he said.

Wlodarczak also questioned Netflix’s engagement levels with customers, which is key to retaining subscribers on the platform. He said that “this very expensive deal” highlights Netflix’s concern that short-form entertainment on platforms like TikTok and YouTube are attracting younger consumers.

YouTube — once known as a place for amateur user-generated videos — has become an entertainment powerhouse, encapsulating the largest percentage of streaming on U.S. TVs, according to Nielsen. In October, YouTube represented 12.9% of U.S. TV viewing time, compared to Netflix’s 8%.

Netflix said its customer engagement “remains healthy,” noting in a shareholder letter in October that it grew its engagement in the U.S. and U.K. by 15% and 22%, from the fourth quarter of 2022 to the third quarter of 2025, citing data from Nielsen and Barb, which tracks viewership.

Equity research publisher MoffettNathanson analysts said questions have been building about Netflix’s engagement growth, adding that even though Netflix’s share of total TV time started to grow in the second half of the year, “YouTube’s share gains have overshadowed most of the other streaming platforms.”

“There’s issues with Netflix engagement, sort of flatlining,” Wlodarczak said. “You get a lot better content, it should help with your engagement. … Is this a signal they’re really starting to get worried about engagement, and they’re out doing this deal because younger people are just spending increasing amounts of time not sitting there watching hour-long shows?”

Netflix declined to comment on Wlodarczak’s report.

On Friday in a call with investors, Netflix executives emphasized that their business is healthy and growing. They pointed out how sci-fi hit show “Stranger Things” was very popular with younger audiences, as well as series like the drama “Outer Banks” and movies including “KPop Demon Hunters.”

“We had record engagement previous quarter,” said Co-Chief Executive Ted Sarandos on the Friday call. “We’re happy with our outlook for the ongoing organic growth and engagement … Our core fundamentals are strong. This gives us a very unique opportunity to accelerate an already very successful model.”

Whether the deal will go through remains an open question, as Netflix would not make the acquisition until 12 to 18 months from now, after Warner Bros. Discovery separates its company, spinning off its cable channels into a new publicly traded company.

Wedbush Securities analysts, who have an outperform rating on the stock, said in a note on Monday that they are skeptical that the deal will pass regulatory scrutiny.

“Ultimately, we think the DOJ will reject a deal without concessions on pricing and industry standards,” the analysts wrote.

On Monday, Netflix executives said they were confident the deal would go through. Co-Chief Executive Greg Peters pointed out that Netflix still represents a smaller share of U.S. TV viewing in the U.S. compared to YouTube, even if it were to combine with Warner Bros. Discover, citing Nielsen data.

“We think there’s a strong fundamental case here for why regulators should approve this deal,” he said.

Wlodarczak said he believes there are benefits to Netflix acquiring the Warner Bros. Discovery assets. The Los Gatos, Calif., streamer would gain access to characters including Batman and Harry Potter.

It also prevents rivals like Paramount from getting bigger.

“They’re starting to get large enough to build a credible threat to Netflix,” Wlodarczak said. “So by buying this thing … it’s going to be really difficult to get as large and have as much scale as Netflix.”

Times staff writer Meg James contributed to this report.

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Akzo Nobel, Axalta Deal Brushes Up Paint Industry

Dutch paint maker Akzo Nobel is splashing into US with plans to buy Philadelphia-based rival Axalta Coating Systems for roughly $9.2 billion in stock. The move will create the world’s second-largest coatings company, trailing only Cleveland-based Sherwin-Williams.

The deal is part of a wave of consolidation that recently saw private equity firm Carlyle buy BASF’s coatings unit for €5.8 billion. Under the terms of the deal, Akzo Nobel will hold 55% of the combined company, with shares moving from Amsterdam to New York. The resulting company will have around $17 billion in revenue and a $25 billion enterprise value.

The companies have a history, with merger talks dating back to 2017, but they “could not negotiate a transaction” that met their “criteria,” Axalta’s then-CEO Charles Shaver said at the time.

Private equity firms circled Axalta in 2019; Clayton, Dubilier & Rice was among the firms considering a bid alongside PPG Industries. Platinum Equity reportedly partnered with Koch Industries Inc. to also make an offer.

Akzo and Axalta agreed to frame the transaction as a “merger of equals,” with Akzo Nobel investors receiving a special €2.5 billion cash dividend, while the new board will feature four directors from each company plus three independents. Current Akzo Nobel CEO Gregoire Poux-Guillaume will lead the combined firm, with Axalta Board Chair Rakesh Sachdev taking the helm at the new board.

“Management has its work cut out convincing investors this is the right step,” Bernstein analyst James Hooper noted wryly. “Revenue growth expectations need some serious color.”

The merger combines strengths in consumer brands like Dulux, Cuprinol, and Hammerite with Axalta’s industrial coatings, including powder coatings for cars. The unified company will operate in over 160 countries. It aims to realize $600 million in run-rate synergies, 90% of which are expected within three years.

The combined entity’s headquarters will remain in Amsterdam and Philadelphia.

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Trump says $72bn Netflix-Warner Bros deal ‘could be a problem’

US President Donald Trump has flagged potential concerns over Netflix’s planned $72bn (£54bn) deal to buy Warner Brothers Discovery’s movie studio and popular HBO streaming networks.

At an event in Washington DC on Sunday, he said Netflix has a “big market share” and the firms’ combined size “could be a problem”.

On Friday, the two companies said they had reached an agreement to bring Warner Brothers’ franchises like Harry Potter and Game of Thrones to Netflix, creating a new media giant.

The planned deal, which has raised concerns among some in the industry, is yet to be approved by competition authorities. The BBC has contacted Warner Bros, Netflix and the White House for comment.

Launched in 1997 as a postal DVD rental business, Netflix has grown to become the world’s largest subscription streaming service. The deal, the biggest the film industry has seen in a long time, would cement its number one position.

Under the agreement several global entertainment franchises, such as Looney Tunes, The Matrix and Lord of the Rings, would move to Netflix.

The deal is expected to be completed after Warner Bros splits its business in the second half of 2026.

The US Justice Department’s competition division, which oversees major mergers, could contend that the deal violates the law if the combined businesses account for too much of the streaming market.

At an event at the John F Kennedy Center in the US capital, Trump said that Netflix has a “very big market share” which would “go up by a lot” if the deal goes ahead.

Trump added he would be personally involved in the decision on whether or not to approve the deal and repeatedly highlighted the size of Netflix’s market share.

He also said that Netflix’s co-CEO Ted Sarandos recently visited the Oval Office and praised him for his work at the company.

“I have a lot of respect for him. He’s a great person,” said Trump. “He’s done one of the greatest jobs in the history of movies.”

Mr Sarandos earlier acknowledged that the agreement may have surprised investors but said it was a chance to position Netflix for success in the “decades to come”.

Blair Westlake, a media executive and former chair of Universal Studios’ television and networks group, told the BBC’s Today programme that “the only two pieces that matter” when it came to competition concerns were the combination of Netflix and Warner Brothers’ HBO streaming business.

“Netflix is not in the studio production business the way Warner Brothers is, and even the library size of films and television programming that Netflix owns pales in comparison to Warner,” he said.

Mr Westlake said he thought the deal would eventually be approved, but “I think that there will probably be concessions that have to be made”.

Bill Kovacic, a former chair of the US competition watchdog the Federal Trade Commission, told the Today programme that Trump’s comments meant negotiations over any problems surrounding the deal were “going to run through the White House”.

“That means that we’re going to have probably a deep level, an unprecedented level of presidential control in the resolution of what used to be a technical analysis of a merger,” he said.

Netflix beat several rivals including Comcast and Paramount Skydance to strike an agreement with Warner Bros.

Paramount Skydance, which is headed by David Ellison, had previously tried to buy all of Warner Bros, including its cable networks.

Warner Bros rejected that approach before putting itself up for sale.

David Ellison’s multi-billionaire father, Larry Ellison, is a close ally of Trump.

The Writers Guild of America’s East and West branches called for the merger to be blocked, saying the “world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent.”

“The outcome would eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers and reduce the volume and diversity of content for all viewers,” it said on Friday.

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