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Netflix shares drop after Paramount launches hostile takeover bid

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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.

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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.

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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.

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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 at a UBS conference.

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.”

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Times staff writer Meg James contributed to this report.

Movie Reviews

Movie Review: ‘Sacred Heart: His Reign Has No End’ – Catholic Review

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Movie Review: ‘Sacred Heart: His Reign Has No End’ – Catholic Review

NEW YORK (OSV News) – As America’s Catholic bishops prepare to mark the semiquincentennial by consecrating the nation to the Sacred Heart of Jesus, a French docudrama that can aid viewers in understanding the full significance of such an action makes its timely appearance.

A Fathom Entertainment presentation, “Sacred Heart: His Reign Has No End” will have a limited theatrical run June 9-11 and June 14. The version screening on June 10 will be dubbed in Spanish.

Following its initial release in France last fall, the film proved to be phenomenally popular, with ticket sales reaching the half-million mark in a country usually regarded as deeply secular. This unusual development clearly indicates that the movie resonated with audiences in a way that even its creators may not have expected.

Filmmakers Sabrina and Steven J. Gunnell examine the origins, meaning and enduring relevance of devotion to the Sacred Heart. They begin their exploration even before the landmark revelations received in the 1670s by St. Margaret Mary Alacoque, a Burgundian Visitation nun, showing that earlier saints had focused on the subject in medieval times.

Using reenactments, interviews and archival images, the Gunnells also highlight the theological connection between the Sacred Heart and the Eucharist. This is done, in part, by recounting a few of the many Eucharistic miracles granted to the Church over the centuries.

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By profiling contemporary devotees of the Sacred Heart, including formerly inactive Catholics, the picture demonstrates the impact the insights given to St. Margaret Mary continue to have on the lives of people around the world. Locations visited range from the gang-infested streets of a Parisian suburb to the once war-torn Central American country of El Salvador.

An excellent and enjoyable catechetical resource, the feature is also both moving and uplifting. It can be recommended for all but the youngest kids.

For theater locations and showtimes, go to: sacredheartfilm.us

Dubbed into English.

The film contains gory images of the Crucifixion. The OSV News classification is A-II — adults and adolescents. Not rated by the Motion Picture Association.

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Two of music’s most powerful executives maxed out donations to Spencer Pratt

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Two of music’s most powerful executives maxed out donations to Spencer Pratt

According to data from the Los Angeles City Ethics Commission, Pratt’s supporters include two members of the record industry’s most powerful family who have donated the maximum amount allowed by law.

Los Angeles’ music industry, in recent years, has generally supported progressive causes. But as the primaries for the city’s mayoral race and California‘s governorship wrapped up Tuesday, some music executives and performers have supported and donated large amounts to Spencer Pratt, the right-leaning activist and reality TV star running for mayor.

According to data from the Los Angeles City Ethics Commission, Pratt’s supporters include two members of the record industry’s most powerful family who donated the maximum amount allowed by law.

Pratt is a registered Republican whose heated rhetoric about homeless “zombies” and AI-created advertisements have rankled progressives and delighted conservatives. He has received support from President Trump, who told reporters that “I’d like to see him do well. He’s a character. I don’t know him, I assume he probably supports me… I heard he’s a big MAGA person.”

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In response, Pratt told TMZ that “Everybody wants me to succeed because L.A. is the most important city in the country. The only support I need is from moms that wanna feel safe in Los Angeles. I’m laser-focused on that.”

Universal Music Group is home to some of music’s most outspoken progressives, including Olivia Rodrigo and Billie Eilish, whose brother and collaborator Finneas O’Connell donated $250 to the progressive mayoral candidate Nithya Raman on May 6.

Earlier this year, UMG’s chairman and chief executive Lucian Grainge presented Rodrigo with the company’s Universal Music Group x REVERB Amplifier Award, which advocates for “social and environmental nonprofit campaigns through the cultural power of music,” according to a release.

On May 9, Grainge (listed as a resident of Pacific Palisades, where Pratt lost his home in the 2025 fires) maxed out with an $1,800 donation to Pratt’s campaign, as previously reported in The Times. A representative for UMG did not immediately return a request for comment on Grainge’s donation.

He’s not the only Pratt donor in the family.

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Grainge’s son Elliot ascended through the record industry with his 10k Projects label, and now heads UMG’s competitor Atlantic Records. Vocal progressives like Cardi B, the Marías and Charli XCX are some of the label’s most high-profile acts.

On May 8, Elliot Grainge also gave $1,800 to Pratt‘s campaign. A representative for Atlantic did not immediately return a request for comment.

Last month, the record producer and composing titan David Foster and his wife, singer Katharine McPhee, performed at a fundraiser for Pratt where they crooned a version of Tina Turner’s hit “The Best” to the mayoral hopeful. “Spencer, you’re simply the best. Better than all the rest. Better than Karen Bass and Nithya Raman,” McPhee sang.

At Warner Music, Gabz Landman, the senior vice president for A&R at Warner Chappell, its powerful music publishing wing, who has worked with Dua Lipa, Laufey and Amy Allen, gave $105.24 to Pratt on Feb. 4. Through a Warner Music representative, Landman said the donation was for merchandise given to a friend, and was not intended as support for Pratt’s campaign.

The superstar EDM producer and DJ Kaskade has left supportive messages on Pratt’s social media, commenting on one of the candidate’s posts that “At this point, who is buying in to Bass’s fairytale narrative?! I am still shocked she hasn’t resigned!” The DJ and producer Diplo also left a supportive comment — a prayer-hands emoji and “please” — on one of Pratt’s social media posts. Records do not show any personal donations to Pratt’s campaign from either artist.

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Public records do not show any donations to Pratt’s campaign from live-industry executives atop firms like Live Nation, AEG or Goldenvoice.

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Masters of the Universe (2026) | Movie Review | Deep Focus Review

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Masters of the Universe (2026) | Movie Review | Deep Focus Review

There’s a photo of me (below) from the mid-1980s, when I was around age 5, standing on the hood of an old Plymouth in the overgrown field behind my childhood home. I’m holding He-Man’s shield in one hand and his sword, made of yellow plastic, in the other. (Unrelatedly, I’m also wearing an Incredible Hulk shirt in the picture.) And I’m grinning with pride because I have thoroughly conquered the jalopy. The vehicle never ran again, probably because I fucking destroyed it with my sword and shield. Around that time, I also had a He-Man birthday cake and a sizable collection of Mattel’s Masters of the Universe action figures. They were my first foray into toys of this kind, later replaced by G.I. Joe, Teenage Mutant Ninja Turtles, and X-Men. However, my nostalgia for He-Man remains almost nonexistent today, perhaps because, looking back at the material, the mythology remains at once weird and unmemorable, and neither the popular animated series nor the 1987 film, Masters of the Universe, starring Dolph Lundgren and Frank Langella, holds up well. 

Over the years, Mattel has tried to revive the toy line and cartoon, but the company’s biggest effort thus far is the new feature from Amazon MGM Studios, which reportedly spent upwards of $200 million on a blockbuster-sized Masters of the Universe. If the 1980s versions of this franchise unabashedly targeted the preadolescent boy demographic, the new iteration has been reconfigured (by a sausage fest of credited screenwriters: Chris Butler, Aaron Nee, Adam Nee, and David Callaham) to adopt a more conventional mold. The movie also incorporates the last three decades of ironic reassessment: the series’ very 1980s obsession with bulging muscles; the loincloth-centric costumes, all of which look like rejected designs from Zardoz (1974); the vague eroticism between He-Man and several characters, including his nemesis, Skeletor; and the eccentricities of the cartoon, from the many heads thrown back in laughter to the bizarre characters—all of which started first as action figures (Stinkor, Mantenna, etc.), around which the writers built a lame storyline.

Despite its origins, Masters of the Universe sets out to become a four-quadrant feature, appealing to everyone, and in that, no one in particular. The story is too bloated for little children, with a 142-minute runtime that challenged the attention spans of the kids in my prescreening, who became restless after an hour. Admittedly, so did I. The material’s self-awareness and humor aren’t memorable enough to distinguish it from other, better examples in this genre, such as Dungeons & Dragons: Honor Among Thieves (2023)—a movie that I enjoy more with each subsequent viewing. And director Travis Knight can’t decide whether the audience should take these characters seriously or laugh at their inherent silliness. He attempts both and does neither very well. The result did not rekindle my nostalgia for this chapter of my childhood; it didn’t create an exciting new take for audiences of all ages, either.

A protracted opening establishes the distant realm called Eternia, where sword-and-sandal heroes stand alongside robots and flying ships with laser guns. Eternia’s resident baddie, Skeletor (voiced by Jared Leto, doing an R-rolling master-thespian thing), wants the Sword of Power, which imbues its wielder with, as you might guess, power. But it’s kept in Castle Grayskull, home of King Randor (James Purefoy), who’s disappointed by his son, Adam (Artie Wilkinson-Hunt), a young boy more interested in goofing around than learning to fight. When Skeletor attacks the castle and proves victorious, the Enchantress (Morena Baccarin), the magically inclined protector of Grayskull, sends Adam away to Earth along with the coveted sword. What happens then? Did a couple of farmers adopt him à la Superman? Or did he grow up in the foster system? The writers ignore such practical questions, picking up the story years later, when the adult Adam (now a hulking Nicholas Galitzine) works in corporate human resources. After Adam finally locates his sword, which was lost when he was transported from Eternia to Earth, he eventually finds his way home with the help of his childhood friend, Teela (Camila Mendes), to retake Grayskull from Skeletor. 

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Knight’s main source of inspiration, besides the cartoon and earlier movie, seems to be the similarly themed cult classic Flash Gordon (1980). Masters of the Universe’s music features identical-sounding Howard Blake-style guitar riffs and, to echo the original songs Queen wrote for Flash Gordon, the production uses Queen’s “Princes of the Universe” on the soundtrack. In other areas, Knight directs a conventional franchise movie with choppily edited and CGI-heavy battle scenes full of anonymous violence, lifeless chase sequences, digital backdrops resembling video-game environments, and shameless product placements for Coca-Cola and Amazon. The VFX sometimes look impressive; at other times, they look cheap and generic. Fortunately, Knight’s production also offers practical effects and prosthetics for some characters, most memorably the cyborg Trap Jaw. Knight’s secret weapon is costume designer Richard Sale, who visualizes the inherently absurd look of these characters, for better or worse, in tangible garb. The actors inhabiting the excellent costumes don’t have much to do, though. Ask yourself why they hired Kristen Wiig to voice Roboto, a bland robot character whose dialogue could have easily been performed by anyone else, or even just replaced with the beeps and boops of a Star Wars droid. When you have Kristen Wiig, use her.

Masters of the Universe movie still 2

Elsewhere, Masters of the Universe attempts to be self-aware in its irony and sexually suggestive underpinnings. There’s a running gag about how practically everyone can’t keep their eyes off Adam after he becomes his heroic alter-ego, He-Man, given his oiled-up muscles and blonde locks. But under Adam’s pink shirt, he still looks buff, making his eventual Hulk-like transformation into a muscle-bound barbarian unremarkable. Elsewhere, I liked the detail of Adam growing up on Earth and forgetting everyone’s names on Eternia, so he makes up their names based on their physical characteristics. A man with a big metal hand becomes Fisto (Jóhannes Haukur Jóhannesson), and another with a metal head-butting helmet becomes Ram-Man (Jon Xue Zhang). The writers take advantage of this with veiled dirty jokes about fisting and Ram-Man “giving head” to Skeletor’s goons. That’s about as clever as the movie gets. As for character development, there’s almost none. Skeletor, for instance, wants to be bad for the sake of being bad. His motivations are nonexistent, resulting in an obvious, uninteresting, and one-dimensional villain.  

A key series in the conservative, Reagan-era 1980s, the Masters of the Universe cartoon and previous movie valued strength and power, muscles and might. Today, that message has negative, regressive associations with the political right, which often looks at this period from a fond standpoint. To avoid alienating any part of their audience, the filmmakers desperately try to please everyone with a mild progressive commentary to counter the franchise’s original themes. Adam’s character must learn to “be a man” to please his father, King Randor, and his makeshift father figure, Man-at-Arms (Idris Elba, in a chummy reformed drunk role). But there’s also a half-hearted message that Adam, having worked in human resources, knows the value of empathy and emotional intelligence. For a while there, the movie even claims you can’t solve every problem with muscles—that is, until He-Man resolves the conflict by pummeling Skeletor with his fists. The movie’s message is ultimately nonexistent. The committee making this movie has carefully avoided any line-in-the-sand worldview, all in an attempt to manufacture a box-office hit that will please everyone and offend no one. 

That’s exactly the problem with Masters of the Universe. It’s so afraid to have a perspective or be about something that nothing onscreen has an impact. This is not to say every movie must have a substantive message. Sometimes, a mindless adventure is enough. However, even on those terms, there’s no tension or danger here because Skeletor is never all that menacing, and Adam alternates between self-parody and earnest heroism. None of the emotional beats land, not the many father-son dynamics nor the hero’s journey. And the production’s competing tones, from its intentional camp to its sword-swinging adventure, lack the balance of wit and scope that Dungeons & Dragons: Honor Among Thieves so delightfully captured. For much of the runtime, I felt bored and, aside from a few chuckles at the childish humor, disengaged from everything happening. Perhaps Roboto describes the movie best when referring to life as “a series of absurdities leading to infinite nothingness.”

Photo: Brian the Barbarian

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