Netflix Refinances; Clearwater Rallies; Datavault AI Soars;

On this episode of Stock Movers:

- Netflix (NFLX) has refinanced part of a $59 billion bridge loan to support its potential acquisition of Warner Bros. Discovery Inc.
The streaming giant secured a $5 billion revolving credit facility and two $10 billion delayed-draw term loans to refinance part of the bridge facility it took out for its Warner Bros. bid, according to a filing on Monday. That leaves $34 billion for syndication.

- Shares of Clearwater Analytics (CWAN) rallied in premarket trading as a group of private equity firms led by Permira and Warburg Pincus has agreed to acquire Clearwater in a deal valuing the investment and accounting software maker at $8.4 billion including debt. Clearwater investors would get $24.55 a share for an equity value of about $7 billion, according to a statement confirming an earlier report by Bloomberg News. The company said the price, which is roughly 10% higher than the stock’s last close, represents a 47% premium to the price on Nov. 10, before Bloomberg reported the two buyout firms were in talks to buy it.

- Shares of Datavault AI (DVLT) soared ahead of the US market open after the company announced the issuance of two U.S. patents supporting its push into AI-powered data monetization and blockchain-based content licensing. The patents, which enable automated smart contract enforcement and tokenized royalty distribution, bolster the company’s position in the $369 billion global content licensing market.

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Episode Transcript

Speaker 1 (00:00):
Bloomberg Audio Studios, podcasts, radio News.

Speaker 2 (00:08):
This Stock Movers Report, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 1 (00:16):
Let's take a look at some stocks on the move today.
I'm Nathan Hager, joined by Bloomberg's Dan Curtis. At the
start of a holiday shortened trading week, but lots going
on in the individual stock space, including new developments in
the Warner Brothers bidding.

Speaker 3 (00:30):
Ward.

Speaker 1 (00:30):
Dan, We've got a Netflix REFI good morning.

Speaker 3 (00:34):
Good morning. It's the deal that keeps on giving. As
you mentioned on this holiday shortened the week, so lots
of news out as a Netflix and Paramount both kind
of battle each other to get a hold of Warner Brothers.
This morning, we've had news that Netflix has refinanced part
of a fifty nine billion dollar bridge loan in an
effort to acquire Warner Brothers. It secured five billion dollars

(00:55):
in revolving credit and two ten billion dollars delayed draw
term loans. That leaves about thirty four billion dollars left
for syndication. Now this comes as Paramount has launched a
hostile takeover to take a hostile takeover offer to Netflix earlier,
and paramount has paramount is that offer Netflix? Sorry that

(01:19):
offer Warner Brothers recommended its shareholders reject. So it's really
a battle between this hostile takeover and Netflix, and Netflix,
even with this additional level of financing secured, still has
to get through regulatory hurdles to get gain approval. Looking
at prediction markets, they're saying that it's sixty four percent

(01:39):
chance that Netflix closes the deal. So right now netflixing
in the lead, and this additional financing will surely help
push it through.

Speaker 1 (01:46):
Okay, So while that saga continues, maybe into the new year, Dan,
we have a firmer merger Monday news for a software.

Speaker 3 (01:55):
Maker, that's right, the software maker Clearwear Analytics Tick or CW,
and that's up eight percent in pre market right now.
A private equity group led by Permira and Warburg Pinkus
has agreed to buy the financial service software company and
it deal worth over eight billion dollars. The shareholders get
twenty four dollars and fifty five cents a share, and

(02:15):
that's just a little bit north of the twenty four
dollars it's trading at in pre market. And these these
private equity firms do have a history with Clearwater Analytics.
Both Permira and Warburg helped take the company public four
years ago at eighteen dollars a share, So four years
later it's buying it back about six bucks a share.

Speaker 1 (02:32):
Hire The biggest gainer this morning, at least one of
them Data Vault AI. What's going on with Data Vault
AI this morning?

Speaker 3 (02:42):
Yeah, that stock is absolutely surging in high volumes too.
It's up thirty three percent in the pre market. It's
a five hundred million dollar company, so I had to
do a little bit digging into this. It's a database
company that leverages blockchain technology going through the issue and
so it hits on a lot of the keywords that
people like hearing right now. You have AI in the name,
you have the blockchain technology that it tries to leverage,

(03:05):
and then it also goes into quantum, some quantum encryption.
So it's a lot a very high tech company. It
has two patents that have been approved. One is to
use blockchain to identify content usage, verify licensing and distributing,
and then distribute fees. The other uses blockchain to register, track,
license and monetize creative works. Overall, ideas this the patent

(03:25):
helps allow for both data and creative content to be
quote unquote tokenized, which is very big in the blockchain community,
and then monetize, which is one of the company's goals.

Speaker 1 (03:34):
And just quickly found this very interesting. Uber and Lyft
teaming up on robotaxi in the UK.

Speaker 3 (03:41):
That's right, so Uber and Lyft are both try going
to be testing out by Do's Apollo Go cars in London.
This follows Alphabet's Weimo which started testing this year. Bid
has been really dominating the space for these driver list taxis.
Those cars already operate in twenty two different cities. This
will be a test of driving on the left hand

(04:01):
side of the road though.

Speaker 2 (04:03):
This stockmover's report from Bloomberg Radio. Check back with us
throughout the day for the latest roundup of companies making
news on Wall Street and for the latest market moving headlines.
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