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Netflix, After Walking Away From Warner Bros. Deal, Will ‘Move Forward’ With ‘$2.8 Billion in Our Pocket That We Didn’t Have a Few Weeks Ago,’ CFO Says

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Netflix, After Walking Away From Warner Bros. Deal, Will ‘Move Forward’ With ‘.8 Billion in Our Pocket That We Didn’t Have a Few Weeks Ago,’ CFO Says

Netflix is no longer contemplating a future that includes Warner Bros., having ceded the heated M&A battle to Paramount Skydance. Netflix CFO Spence Neumann, speaking Wednesday at the Morgan Stanley Technology, Media & Telecom Conference, reiterated the company’s position that it bailed out of the bidding for Warner Bros. because Paramount increased its offer price.

“The short answer is, it was all about price,” Neumann said. “We said all along this opportunity was a nice-to-have at the right price, not a must-have at any price,” he added, echoing Netflix co-CEO Ted Sarandos’ previous statement.

Netflix, when it struck the deal to buy WB’s studios and streaming business in December, was playing “offense, not defense,” Neumann said. According to the CFO, Netflix has a “unique view” into how to value the WBD assets. “We went into it with a point of view on price,” he said. “When it became clear it didn’t make sense for us financially anymore,” the company bowed out.

“Now we move forward, and we move forward with $2.8 billion in our pocket that we didn’t have a few weeks ago,” said Neumann, referring to the breakup fee it received from Paramount Skydance.

On Feb. 26, Netflix abandoned its deal to buy Warner Bros.’s studios and streaming business after David Ellison’s Paramount upped its hostile bid for WBD in its entirety to $31/share — leaving Paramount the winner of a debt-fueled takeover of the media conglomerate. Paramount Skydance paid Netflix the $2.8 billion breakup fee once Warner Bros. Discovery terminated its agreement with Netflix in favor of Paramount’s “superior” offer.

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Asked if the Warner Bros. bidding war changed Netflix’s M&A strategy, Neumann replied, “I know it sounds boring, but it’s really no change.” The company will “continue to stay focused on what are those opportunities” to accelerate the growth of the business, he said.

Neumann said Netflix, by the end of the bidding process for Warner Bros., had “a stronger belief” that “we would have been great stewards” for those assets. And, he insisted, Netflix had high confidence that it had a “clear path” to regulatory approval.

“At the end of the day, we were going to be disciplined” on the price it was willing to pay for Warner Bros., Neumann said.

In 2026, Netflix plans to boost its total cash content spending to around $20 billion, up 10% from last year. It is forecasting revenue of $50.7 billion-$51.7 billion, which would be an increase of 12%-14% year over year, and projects hitting 31.5% operating margin in 2026. The streaming heavyweight reported more than 325 million subscribers worldwide as of the end of 2025, up from 301.2 million a year prior.

The expected 10% increase in Netflix’s content spending this year is in line with its expected revenue growth, Neumann said. “It’s really no change in our approach,” he said. “We really want to be that starting point and destination for professionally produced content for creators around the world.”

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How Japan Lost 3 Million People in Five Years

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How Japan Lost 3 Million People in Five Years

Japan’s population fell by more than 3 million over the past five years, according to official statistics released on Friday, a drop that underscores the depths of the country’s accelerating demographic crisis.

The population stood at 123 million in 2025, according to preliminary census results, down from 126.1 million in 2020. It is the biggest decrease since the government began collecting census data in 1920.

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Japan’s population loss is accelerating

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Change in population every five years

Source: Statistics Bureau of Japan

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Japan’s population peaked in 2008 at 128 million, and it is projected to fall to 87 million by 2070. The country is now roughly the same size it was in 1989.

For decades, the Japanese authorities have tried to make up for the rapidly aging population by encouraging young people to have more children. But the effort has fallen short, leaving the country with one of the world’s lowest birth rates. For each new birth, there are two deaths.

Japan is a harbinger of the demographic headwinds that will soon buffet other developed countries. The shrinking population is already constraining Japan’s economic growth, putting pressures on its health care system and causing labor shortages.

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The census data shows that the demographic crisis has now reached almost every part of Japan. All but two of the country’s 47 prefectures reported population decreases in 2025, and the rate of decline is accelerating.

Among the hardest hit areas were the northern prefectures of Akita and Aomori, where the population shrank by about 8 percent from 2020 to 2025. Those areas are home to some of Japan’s oldest residents, and young people have left at a rapid rate because of stagnant wages and harsh winters.

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Most of Japan is losing population

The Japanese countryside is hollowing out as the population ages and young people leave to seek jobs in Tokyo, Osaka, Nagoya and other cities. In some rural areas, schools are being converted into nursing homes and community centers. Millions of homes are vacant; government offices and hospitals are downsizing; and train lines are shutting down.

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Opening Japan’s doors more widely to foreigners could help offset the declines. But the government has long taken a cautious approach to immigration, and nationalist politicians and commentators have gained influence recently with a “Japan First” agenda.

“Japan has now reached a level where this kind of decline is not reversible in the short- or medium-run,” said James Raymo, a professor of sociology at Princeton University who studies Japan. “It simply will not happen in the absence of mass immigration.”

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There were a few bright spots in the census, including Okinawa, a subtropical chain of islands in the south, where the population grew slightly. Okinawa has Japan’s highest fertility rate, with women there giving birth to an average of 1.5 children in their lifetimes, compared with 1.1 nationally.

Japan’s biggest cities are managing to stave off demographic decline — for now. The population of the Tokyo metropolitan area, which includes Tokyo and the surrounding prefectures of Kanagawa, Saitama and Chiba, rose slightly to 37 million in 2025. The area now accounts for roughly 30 percent of Japan’s total population.

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Source: Statistics Bureau of Japan

Tokyo, a vibrant hub of business, politics and culture, is now about 20 times denser than the rest of Japan — and one of the world’s densest cities. (Tokyo’s population rose more than 1 percent to 14.2 million in 2025.) The growth has been fueled in large part by an influx of students and young workers looking for jobs and educational opportunities.

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Japan’s woes are likely to worsen in the coming decades. It will probably become increasingly difficult to find workers to staff schools, hospitals, police departments and train stations. And the country could lack enough young people to pay the taxes necessary to support retirees.

Professor Raymo said the Japanese government’s efforts to promote fertility had “not really moved the needle.” He said that ultimately Japan could provide lessons for other governments.

“More and more countries in Asia and elsewhere will experience similar levels of demographic decline,” he said. “Japan is just at the forefront and has been at it much longer.”

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Drone strikes apartment building in NATO member Romania as Russia attacks neighboring Ukraine

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Drone strikes apartment building in NATO member Romania as Russia attacks neighboring Ukraine

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A drone struck an apartment building Friday in Romania, a NATO member, causing an explosion and fire that injured multiple people, local authorities said.

According to Romania’s Ministry of Defense, the incident occurred as Russia carried out an overnight drone attack in neighboring Ukraine near the Romanian border.

“A drone entered Romanian airspace, was tracked by radar systems as far as the Southern area of Galați municipality, and crashed onto the roof of a residential apartment building,” the ministry said.

Romania — a member of both NATO and the European Union — has reported more than two dozen incidents involving Russian drones entering its airspace since Moscow launched its invasion of Ukraine.

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NATO SCRAMBLES WARPLANES AS RUSSIA HITS NEAR ROMANIAN BORDER IN UKRAINE

A fire burns on the roof of a 10-story block of flats after a drone crashed into the building, causing an explosion and injuring two people, near the border with Ukraine, in Galati, Romania. (Romanian Department for Emergency Situations/Handout via REUTERS)

Friday’s incident marked the first time a drone struck a populated area in Romania, resulting in injuries.

Romania’s state news agency reported that a woman and her child were hospitalized with minor injuries, while two other people were treated at the scene for panic attacks.

Following the incident, Romania requested additional anti-drone capabilities from NATO and described the drone’s flight path as a serious violation of international law, according to The Associated Press.

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RUSSIAN DRONES TEST NATO’S ARTICLE 5 DEFENSE GUARANTEE AHEAD OF FRIDAY SANCTIONS DEADLINE

Russian servicemen prepare to launch an interceptor drone for an action in an undisclosed location in Ukraine. (Russian Defense Ministry Press Service via AP)

Romania’s emergency response agency said the drone struck the apartment building and exploded, sparking a fire on the 10th floor.

The agency said the drone’s entire explosive payload detonated upon impact.

Seventy people were evacuated from the building, authorities said. The fire has since been brought under control.

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NEW ROMANIAN LAW MAY HAVE AVERTED NATO CLASH WITH RUSSIA AFTER BORDER STRIKES

Ukrainian President Volodymyr Zelenskyy has urged the United States and its allies to provide additional air defense systems as Russia intensifies drone and missile attacks. (Javier SORIANO / AFP via Getty Images)

The defense ministry said two F-16 fighter jets and a military helicopter were deployed to monitor the Russian attack. The pilots were authorized to shoot down any drones that posed a threat.

The incident came after Ukrainian President Volodymyr Zelenskyy said earlier this week that he was pressing the United States to provide additional Patriot air defense missiles to help counter Russian attacks.

He warned that deliveries to Ukraine were falling dangerously short as the conflict with Iran strains U.S. military resources and stockpiles.

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“I believe [the U.S.] must act quicker. We are being very persistent,” Zelenskyy told reporters during a visit to Sweden.

Reuters and The Associated Press contributed to this report.

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Temu has to "show actions" to comply EU rules after fine, says MEP

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Anna Cavazzini believes the Chinese company is “willing to comply” following the €200 million fine imposed by the European Commission over dangerous baby toys. But Cavazzini warns of the “structural problem” of unfair competition coming from China.

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