WBD Rises on Ellison Backing; Rocket Lab Climbs; Clearwater Rallies

On this episode of Stock Movers:
- Shares of Warner Bros. Discovery (WBD) moved higher ahead of the US market open as Paramount Skydance Corp. sweetened its bid for WBD, including offering a personal financial guarantee by Oracle Corp. Chairman Larry Ellison, as it seeks to beat out a rival bid from Netflix Inc. Ellison has agreed to personally guarantee $40.4 billion in equity financing for Paramount’s proposed $108.4 billion offer for Warner Bros., according to a statement Monday.  Ellison, whose son David Ellison is chief executive officer of Paramount, agreed not to revoke the Ellison family trust.
- Shares of Rocket Lab (RKLB) climbed in early trading after the company won a US Space Force contract to design and build 18 satellites, marking the company’s largest single contract to date. The deal includes additional subsystem opportunities that could take the contract's total value to about $1 billion.
- 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.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, the Stock Movers Report,
your roundup of companies making moves in the stock market,
harnessing the power of Bloomberg Data.

Speaker 2 (00:16):
Stock movers, and they're moving.

Speaker 1 (00:17):
Here's Lisa Miteo.

Speaker 3 (00:19):
All right, I have to start with Warner Brothers. We've
been talking about it all morning long. Their shares WBD
has been up as much as four percent. A lot
of different news surrounding the bid offers from Netflix and Paramount.
I want to start with Netflix. So the news from
Netflix they refinanced part of a fifty nine billion bridge
loan to support the potential acquisition of Warner Brothers. So
if you look at the breakdown, this is, according to

(00:40):
a filing, secured a five billion revolving credit facility two
ten billion delayed draw term loans to finance part of
that bridge facility it took out for the bid, and
that leaves about thirty four billion for syndication. Netflix shares
have been up a much as half a percent, and
then you had Paramount's guidance came just after that, a
lot of news this morning, more than three percent. They

(01:00):
sweetened the bid for Warner Brothers Discovery. Right, it includes
a personal financial guarantee by Oracle chairman Larry Ellison. Yes,
the father of David Allison, Daddy stepping, and he's gonna
personally guarantee forty point Bill. I said that it would
be in the time equity financing. But this is what
they were looking for. They were looking for that personal

(01:21):
guarantee to hear from at LISTA and I'd have no
clue what we're talking about other than she saw I
have a tar.

Speaker 1 (01:26):
I didn't, Paul, what's it all mean.

Speaker 2 (01:29):
I think it means that the Ellison's they're putting their
best foot forward here and they're really committed to getting
this deal. So Netflix just ticks it up a couple
of dollars.

Speaker 3 (01:38):
Is that the game?

Speaker 2 (01:39):
I think both are going to have to bring their
bids up.

Speaker 1 (01:42):
Yeah.

Speaker 2 (01:42):
I think it's gonna get to that. Mary thinks that. Yeah. Well,
of course, of course, and he knows what he's talking about, Marybelly,
So we'll see. But I mean, this is a good
step on the part of the paramount, and it was.

Speaker 3 (01:51):
The trust right, the trust with a.

Speaker 1 (01:53):
Big issue, yep.

Speaker 2 (01:54):
And he says, we will not revoke this trust. It's
the stock is going to stay there and everything that well,
I'm not sure everything, but a lot of things that
Warner Brothers said was lacking in their bid they've tried
to cure here. So there you go. All right, there's
Warner Brothers. How about rocket Lab? All right?

Speaker 3 (02:07):
So rocket Lab RKLB.

Speaker 1 (02:10):
You know the stocks before the report? Oh yeah, I know,
I know, I don't know them. Sure, emailers, step up.
What's it called?

Speaker 2 (02:19):
Rocket Lab?

Speaker 3 (02:20):
Yes, Space Launch Technology Company? Yes, yes, yes, okay, So
their shares are rocketing up as much as four percent.
They actually dumped eighteen percent on Friday, close at a
record high seventy dollars and fifty two cents. The reason
why on Friday is because the US based Development Agency
they said they awarded the company in agreement worth up
to eight hundred and five million dollars. They're going to

(02:42):
provide eighteen missile warning tracking defense satellites. Rocket Lab said
the agreement was its biggest single contract to date. And
then also came the news that had also successfully launched
its twenty first electron rocket of the year. This is
very science based, well above my big read. But yeah,
their shares a and skyrocketing on this news, so apparently

(03:02):
was a big deal. For them. So we go from
Rocket Lab, we go to software fintech company Clearwater Analytics Holding.
It's cw AN is their ticker. Their shares have been
up as much as eight percent. They agreed to be
acquired taking private by an investor group. It was led
by Permira, also Warburg Pinkus. It's a deal worth eight
point four billion dollars. So the breakdown. Shareholders of Clearwater

(03:25):
they're going to receive twenty four dollars fifty five pence
cents per share in cash under the terms. The deal
price represents a premium about forty seven percent the firm's
closing price November tenth. But it still needs approval. It
needs approval from Clearwater shareholders, It needs clearance from regulators
on top of that, and they expect to complete that
in the first half of the year. So we'll see

(03:45):
if that does happen or not.

Speaker 2 (03:47):
Okay, stuck, you have what I'll give you.

Speaker 3 (03:49):
I'll give you a few quickies. How about that? Okay?
Marvel Technology is the chip maker bam okay rising two percent.
City basically opened a positive catalyst watch on the company
ahead of next month CEES conference. That conference huge, that's
gonna be a big thing.

Speaker 1 (04:03):
That's a big one.

Speaker 3 (04:04):
Yes, that is definitely a big one.

Speaker 1 (04:05):
Road trip. I got some stories in there.

Speaker 2 (04:07):
Boy oh yeah, the Blagio, Oh my craft table late
at night and yeah, good news.

Speaker 1 (04:14):
I went to the Bollaggio for breakfast months and it
was like no fun. I charged it to Retto keepers pay.

Speaker 2 (04:21):
There was like one hundred and thirty dollars for breakfast
to Volagio. Yep, absolutely, those are It's great. Nice Placeto.
Keep them trips down on the table. That's good.

Speaker 3 (04:34):
I told him, next time I washed dishes, you got
one more.

Speaker 1 (04:37):
Yeah.

Speaker 3 (04:37):
Since we've been talking about gold and silver, I just
wanted to point out the miners like Newmont core miner. Yeah,
they're up by four percent for for core mining, and
a new month's up about two percent. So with all
the news on commodities this.

Speaker 1 (04:48):
Week, you get the forty five dollars today.

Speaker 2 (04:51):
Silver just up one hundred fi today.

Speaker 1 (04:55):
This stock Mover's report from Bloomberg Radio. Check back with
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