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Quest Means Business

Netflix Announces $78 Billion Deal To Buy Warner Bros And HBO; Teams Learn Group Stage Opponents At Ceremony in D.C.; Trump Administration Unveils New National Security Strategy. Aired 4-4:30p ET

Aired December 05, 2025 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[16:00:20]

PAULA NEWTON, CNN INTERNATIONAL HOST: It has been a sideways trade today, but it is up, but it has been a positive week as those markets continue to

wait for the Fed rate cuts in a few days. They are betting it happens.

Those are the markets and these are the main events: Netflix agrees to buy Warner Bros. Discovery in a deal that will completely reshape Hollywood.

Digging into the World Cup draw who did well and who faces a tough group, and the Art Basel CEO joins me live. We will talk about what the new

generation of collectors want to do differently. Live from New York. It is Friday, December 5th. I am Paula Newton, in for Richard Quest and this is

QUEST MEANS BUSINESS.

And a good evening everyone, tonight Netflix has won a fierce bidding war for the T.V. and film studios of Warner Bros. Discovery, the parent company

of CNN. It offered $72 billion for the studios, along with HBO and the HBO Max streaming service. WBD's cable channels, including CNN are set to be

spun off late next year.

Netflix hopes to get regulatory approval and close the sale within about a year-and-a-half. Now, Warner Bros. Discovery shares rose closer to the sale

price of $27.75.; Netflix shares though fell three percent. Paramount Skydance meantime, one of the two losing bidders fell more than 10 percent

as you will see in a moment.

CNN's chief media analyst, Brian Stelter is with me now.

Brian, wow! Take a deep breath. I mean, what a blockbuster today. More of the details were filled in in the last few hours. What are your takeaways

from this massive deal?

BRIAN STELTER, CNN CHIEF MEDIA ANALYST: Well, number one, its coming from the company that helped put Blockbuster Video out of business. You know,

think about what Netflix represents in the media culture around the world. Netflix, a DVD by mail company, a startup that many people dismissed starts

to stream T.V. shows and movies over the internet, and at the time when Netflix started to do that, big companies like HBO and Warner Bros. were

kind of dismissive.

Flash forward 15 years, now, Netflix is the streaming king, and it sees an opportunity here to get even bigger. Basically, you have Netflix looking

around in the marketplace believing that its up against Amazon and Apple and most notably, Google's YouTube and it believes that in that competition

among big tech players, Netflix has to seize on these Warner Bros. assets.

So as you mentioned, Warner Bros. Discovery, CNN's parent is splitting into two different halves. That is going to continue. It is going to take effect

next summer. CNN and other channels will go off with Discovery Global, and then Netflix will come in to buy Warner Bros. including HBO.

But this regulatory environment is going to be very complex for Netflix. It is going to be a long, hard slog.

NEWTON: In terms of that slog, Brian. I mean, look, Paramount was not happy to lose this bid. They said so in a letter before this deal was announced.

How messy could it get on the regulatory side of things, but also from a corporate perspective, this could be a real dogfight.

STELTER: Yes, today, officially, Paramount is not commenting on the Netflix deal. I have been trying all day, but unofficially, Paramount is plotting

how to fight back. You know, they are already spreading rumors about competing bids that were higher, suggesting that Netflix actually made a

lower bid and that Warner Bros. Discovery might be doing something against shareholder needs and values.

The pushback from Warner Bros. and Netflix is pretty significant on that, but there is this, you know, certainly behind-the-scenes fight already

boiling up about whether Paramount can figure out a path forward now.

What will Paramount do next? That is one of the big question marks. The other big question mark is what the regulatory review process will be like.

Will the Trump administration throw up big red flags?

We have heard from both Republican and Democratic senators in the U.S. with concerns about media consolidation already, and I think some states, like

California, will also want to probe this deal. In Europe, there will also be a lot of interest in this Netflix-Warner Bros. combo.

So there is going to be a lot of stakeholders that are going to want to have a chance to scrutinize this, but Netflix knows that, right, they are

going full speed ahead with this, knowing that the regulatory environment is intense, knowing that Trump is transactional, knowing that he might try

to stop this deal.

So it is notable to me, Netflix, having looked around, having never made an acquisition this big before has decided this is worth it. And why is it

worth it? Well, maybe because of "Harry Potter" and "Game of Thrones" and "Friends" and "Batman." All of the I.P. that Warner Bros. and HBO have,

this is a really unique moment for Netflix to get bigger.

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NEWTON: Yes, and if you have to judge by what Paramount lost out on here, I mean, their stock down almost 10 percent today, that pretty much tells you

everything you need to know.

Brian Stelter, this will continue to be a story for us and you. Grateful to you. Appreciate it.

Now, as Brian was saying, if regulators approve this deal, it would combine a Hollywood upstart with a legendary studio.

Let's go way back here. Warner Bros. was founded in 1923 during a silent film era. Five years later, it moved into its iconic lot in Burbank,

California. Netflix launched in 1997 as a DVD rental service and it practically invented the streaming industry a decade later.

Now, moviegoers and streaming subscribers will be curious, more than curious, to find out what their merger might hold for them. CNN's media

analyst, Sara Fischer joins me now.

This is not about corporate titans. This is about your password, your access. Who gets it? How much do I have to pay? This is really concerning,

right? Netflix says that this is pro-consumer. Can they deliver on that?

SARA FISCHER, CNN SENIOR MEDIA ANALYST: So this is what they would argue. One if you bundle services, you give consumers more choice. Do you want

ads? Do you want no ads. You get more content, possibly for less money. Two they would argue that a lot of times when a creator makes a movie or makes

a show, it gets put on a streaming service and it doesn't always get as much love, or it gets put on live T.V. and it doesn't get a lot of love.

The classic example being the lifetime show, "You," which very few people watched on linear T.V., but once Netflix put it on, it became a viral hit.

So they are arguing that for people in Hollywood, they shouldn't see this as a bad thing, but actually an opportunity to get a wider set of eyeballs

on all of their content.

Now, big, big question is what happens with movie theaters? Netflix has traditionally been ones to put their films direct to consumer on the

streaming service, and kind of shy away from theaters, but they're promising to continue to uphold Warner Bros. Pictures' business model by

upholding the theater window.

Of course, the theatrical industry is very skeptical of that, but the one thing I want to stress here, this deal, all of this implications, this is

not going to happen soon, even if the DOJ does not sue to block this, they're going to investigate it. That's going to take many months. If they

do sue to block it, then you've got Discovery, you've got a trial, you probably have an appeal. As Brian mentioned before, you've got European

regulators that are looking at this.

So for consumers out there wondering what does this mean for me? Relax. I don't expect anything to happen before 2027.

NEWTON: And I am sure people are breathing a sigh of relief with that, but having said that, at the same time they're wondering, right, in terms of

your choice, which streaming service you choose, what kind of blockbusters you can actually watch in a movie theater going forward? I mean, at the end

of the day, if you're combining two of the most popular streaming services on the planet, right, and you're putting them into one, clearly you're

going to be paying more. The point is, will you be getting less creative output from that one service -- because Netflix is going to be huge.

FISCHER: It depends on how you evaluate the size of a streamer. You could look at it on the number of subscribers. You could look at it on the number

of minutes viewed compared to all of television. And if you do that, there are far fewer minutes viewed on Netflix than on YouTube, and that's an

argument that I would expect Netflix to make.

So for those that are saying the consolidation of these two streamers is going to hammer or hamper consumer choice, I would leave that to an

independent judge that will have to take a look at how this market is being evaluated by the DOJ. I don't think it is as simple as saying that just

because there is a merger of two companies, there is less choice.

The best example I will give you of that, a lot of regulators were concerned when we merged Disney and Fox in 2019 saying, oh, my God, they

are going to have unprecedented box office dominance. Well, take a look. Fast forward to today, Disney and Fox, 20th Century Studios and Buena

Vista, they have a 24 percent market share. It is not this massive dominant thing. And so I think that it is not just an easy silver bullet to say that

this is going to be anti-competitive.

NEWTON: And we will see that play out, like you said, it is going to take a while. So definitely through 2026 nothing will change for now. Sara

Fischer, thanks for breaking it down for us. Really appreciate it.

FISCHER: Thank you.

NEWTON: Now, the stage is set for the largest World Cup in history. Football fans all across the world watch nervously as the group stages were

laid out in an event in Washington. The U.S. are well-positioned to progress to the knockouts as they face Australia, Paraguay and one of the

European playoff winners, remember, that's not decided yet.

Mexico will open the tournament in a match against South Africa before facing South Korea and a European playoff winner. Canada, also facing one

of those European playoff winners alongside Qatar and Switzerland. Don Riddell is outside the Kennedy Center, where all the action happened.

[16:10:10]

I see there is still snow on the ground, Don, I am on the record as saying before the draw that the snow behind you was a good omen for Canada. I

believe I was correct.

DON RIDDELL, CNN WORLD SPORT HOST: Well, yes, Paula. We could certainly argue a debate, maybe even agree that the three host nations have got

favorable draws. I was in conversation with the former U.S. player, Taylor Twellman a short time ago, and he said he thinks this is the best draw that

the American team has ever had.

And I feel you with the Canadian draw. I think Canada should be thrilled with Qatar, reasonably happy with Switzerland. But you are aware, Paula,

that the fourth team in your group, Group B might be Italy.

Now, the Italians, who have won the World Cup four times have failed to qualify for the last two World Cups, which is just extraordinary, but if

they emerge from their European playoff segment in March, then they will be a serious heavyweight in this tournament and the Canadian fans might not be

quite so optimistic.

But one thing I will say about that, because this is an expanded tournament, 48 teams instead of 32, twelve groups instead of eight, it is

no longer the top two from every group that go through. Most of the third place teams will also go through to the knockout stage, eight of the 12.

So however, this plays out for Canada, they will perhaps be still optimistic that they will make it to the knockout stages, and after that,

who will we see? But this has been an interesting day. This has been a day where the worlds of football, sports, entertainment and politics all

collided here in the snow in Washington, D.C. and it has fired the starting gun for the World Cup tournament next summer.

NEWTON: Don, I only have about 30 seconds left. On the line here, there is a lot of hype behind this. Do you think from what you saw today and what

you see from the draw that the hype, we will see it, right? That what we see on the pitches will match the hype?

RIDDELL: I mean, the World Cup is always great. It is always entertaining. There is a lot more minnows and smaller teams in this year. Teams like Cape

Verde and Curacao, so there will be no shortage of romance in this tournament. But I think what is going to be different about this one is

that it perhaps won't get exciting until the latter stages, as I say, because there are so many teams that will go through to the group stage. I

am not sure the drama will hit us right from the off.

But big teams, big players, I mean, you look at in the group stage, you're going to have Norway against France, for example. That's Kylian Mbappe

against Erling Haaland, two of the biggest names in the game. They are going to be meeting in the group stage, so there are going to be some

massive games even in the group stage, but it might be one of those tournaments that simmers before it boils.

NEWTON: Don, even with the snow behind you, you managed to get us all excited about what is about to happen on the grass. Appreciate it.

Don Riddell for us in Washington. Thanks so much.

Now, robot dogs with the faces of Elon Musk and Mark Zuckerberg, creepy or a must have even at $100,000.00 apiece. Maybe it is an investment. We will

take you to Art Basel in Miami Beach.

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NEWTON: President Trump's America First philosophy is spelled out in a new National Security document. It calls for a bigger U.S. military presence in

the Western Hemisphere to combat illegal immigrants, drug traffickers, and adversarial powers. It claims that European civilization is at risk of

being erased because of immigration and economic decline, and it accuses European governments of blocking U.S. efforts to end the war in Ukraine.

Joining me now, Jim Townsend. He is an adjunct senior fellow at the Center for a New American Security. He was also Deputy Assistant Secretary of

Defense for European and NATO Policy.

I think some might argue that Vladimir Putin couldn't have said it better himself in some respects. I am wondering what your takeaway is from a

document that was shocking to many.

JIM TOWNSEND, ADJUNCT SENIOR FELLOW, CENTER FOR A NEW AMERICAN SECURITY: Well, the town is abuzz today. Everyone is talking about this and you're

right about what Putin might be thinking. What is the Kremlin view of this? There are some points in there that go right to some of the heartache that

the Russians have in Europe, NATO enlargement, for example.

Other aspects of the European security architecture that's been around a long time that they've got grievances about that in fact, this document

addresses in the favor of the Russians.

So you know, I think right now the Russians are pretty happy with what the rollout of this document.

NEWTON: But Jim, if you're Europe, though, how do you respond to this kind of a document? Is it a wake-up call and maybe, you know, the hard love that

you need, understanding that the United States is not going to be the ally that it once was.

Well, I don't think the Europeans have heard something or read something that they hadn't heard before. This is a lot of what Vice President J.D.

Vance said at the Munich Security Conference in February was echoed here.

I think what has probably surprised a lot of Europeans is waking up this morning and seeing this now part of U.S. policy, kind of a culture war type

of thing in terms of the U.S. relationship with Europe and aspirations that the administration has for Europe that is very much Europeans' business.

This is internal domestic politics that this document was addressing and that's something that you normally don't see in a U.S. National Security

strategy.

So I think that's one of the big surprises is how this is -- at manifests itself now for the United States.

NEWTON: Yes, it can certainly be interpreted as meddling, to say the least, but we shouldn't ignore the obvious here, right? I mean, some Europeans

will actually applaud this document. I mean, we've seen populism gaining ground for the better part of two decades in Europe.

TOWNSEND: Well, that's right. I think there are certainly parties and a lot of European states that are saying he has got our back, he is singing our

song, you know. We have been oppressed and now trump is trying to open the window for us to have our say.

But of course, like you said, this is meddling. This is not something that the U.S. normally does.

I think though, there are some Europeans that will also be happy about this idea of Europe standing on its own feet. That was, you know, word for word

in the document that Europe needs to be able to handle its own defense, and there has some been some subsequent news out where the U.S. is saying that,

look, by 2027, we are not going to be the primary defender of Europe. It is going to be the Europeans themselves.

And so this certainly gives a plus-up to those European heads of state and government who have said Europe has got to be able to break the dependency

on the United States and stand on its own feet.

NEWTON: Do you think this kind of policy, though, puts American security at risk in any way?

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TOWNSEND: Well, I mean, that's the important question. It is America First, right? So does this help us? I think it can help us in the sense of trying

to focus more on China, the Indo-Pacific where there does need to be some focus and some other parts of the world as well.

The Western Hemisphere, too. I mean, this is something where they are going to take from Europe some of the priority and give it to other parts of the

world, but it will hurt us if it hurts our alliance and it hurts our allied countries. If they are looking on the United States now more as an

adversary or someone that meddles in their domestic affairs, and so there is less trust in the United States, then that does hurt American security,

U.S. security, it emboldens the Russians, and so that imperils Europe.

So it depends on how this is looked on in European capitals and there is an argument to be made that this is something that looks like the U.S. is more

adversary than ally.

NEWTON: Yes, and it is something that has been voiced in Europe, and yet Europe has pulled out all the stops really trying to ingratiate itself in

any way it can to the United States.

Jim Townsend, we will leave it there. Thank you so much.

Now in Florida, Art Basel Miami Beach is the hot spot this weekend for art collectors, dealers and connoisseurs. This year's edition showcases nearly

300 artists and galleries, making it one of the largest art fairs in the United States.

Now, one installation causing a stir has robot dogs, you see them there wearing incredibly realistic heads of billionaires like Mark Zuckerberg,

Jeff Bezos and Elon Musk wandering and shedding photos.

Mike "Beeple" Winkelmann is the artist behind them. He explained his inspiration. Listen.

(BEGIN VIDEO CLIP)

MIKE "BEEPLE" WINKELMANN, ARTIST: We are increasingly seeing the world through the lens of how they would like us to see it, because they control

these very powerful algorithms and they have unilateral control over how we see the world in many ways.

(END VIDEO CLIP)

NEWTON: Noah Horowitz is with us now, and please let us know what is the goal with this installation in the United States, and do you think this is

a new era of art and art collecting?

NOAH HOROWITZ, CEO, ART BASEL: Yes, well, we are thrilled to have Mike as Beeple with here with us here in Miami. He is part of an initiative we've

just launched called Zero 10, which puts a hand on tech and digitally enabled art from a dozen practitioners from around the world that are here

with us this week and we see this as an important and potentially seismic pivot in the market with more and more artists absolutely working with

digital and tech based tools and bringing that work into market with communities that are bubbling up all around the world that are keen to

trade, collect and create this kind of work over and above and outside the art institution of old.

So this is an important development for Art Basel and the robodogs that certainly caused a lot of stir here, here in Miami and across the world.

NEWTON: Well, they've certainly gone viral. I will say there are a bit creepy, but there is a lot here in terms of this Art Basel that a lot of

people are looking in terms of it being a front foot for art. Right? A pivotal point.

What more can you tell us about that? Especially people like me who don't really know a lot about the art world and are wondering because there has

been a bit of a slip in the upper levels of the art market.

HOROWITZ: Well, look, Art Basel started in 1970 in Switzerland. We've been here in Miami since the early 2000s, we are 23 years, since 2002 here in

this edition.

Our Fair Platform globally with fairs in Hong Kong, Paris and very soon in Qatar in the first quarter of next year is a platform for the great artists

of the world to find a market, to find communities, to find institutional interests, and to build and promote themselves and what we are seeing now

with digital and tech enabled art is yet another evolution in the -- you know, the forward roll of the avantgarde, and we are thrilled about that.

In terms of the market itself, the market has been down for a few years now after a big spike in the post-COVID period. And you know, I think since the

fall, we've seen renewed enthusiasm, renewed confidence in the market. Our fair in Paris was a real boon for that in October and then we saw

extraordinary buy-in at the headline evening auctions in New York just a few weeks ago and we see that carrying over here into Miami to end the year

and we feel that it will be a big springboard for the beginning of 2026.

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NEWTON: I don't have a lot of time left, but digital art, some said it would really take off. It hasn't really. Not so far.

HOROWITZ: Well, it has peaked and valleyed, right? There was the NFT boom, it was a few years ago, but what we see now in the market is a community

that has consolidated. It is very real and it is inevitable that art technology is a thing of our shared future.

It is another medium. We've seen this historically with film, with video, with installation, with multimedia work and I think work coming through

this line is -- it fits a historical narrative and the communities and distribution paths are going to turn heads in the future and I think we

will see more and more artists in the mainstream at major institutions creating touchpoints, connections with this community and we are really

proud to put a hand on it here, for the first time across the Art Basel platform with Zero 10 in Miami Beach.

NEWTON: Yes, and I have noticed that Gen Z is definitely getting involved now more than ever and that's something we can all look forward to.

Noah Horowitz, thank you so much. Really appreciate it.

HOROWITZ: Thank you. Thank you.

NEWTON: Now, few in history have been able to mingle art and architecture like Frank Gehry. The legendary architect died earlier today, known for his

daring and whimsical creations.

He was a star in the world of architecture. Among his ambitious and celebrated projects, the Guggenheim Museum in Bilbao, Spain. Richard Quest

visited the Guggenheim in September and explained that for the people of Bilbao.

Gehry's creation is more than just a building.

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS" (voice over): it is a building so distinct it has given economists a new phrase, the

Bilbao Effect.

It was inaugurated in 1997 by King Juan Carlos. Since then, the Guggenheim has been a turning point in the city's history. More than a million

tourists a year have come to see the building and its contents. It saved local businesses and revived the city's fortunes.

(END VIDEOTAPE)

NEWTON: Frank Gehry was 96 years old.

And that is QUEST MEANS BUSINESS.

Up next, we will have more on the World Cup draw in a Special Edition of CNN World Sport.

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