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Warner Bros. Discovery Rebuffed Three Offers From Paramount; Bag Fees and Premium Perks Help Southwest’s Brand Project; Wyndham Cuts Its Outlook
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Good morning. Today, David Ellison offers to share power with David Zaslav; a discount airline sets a new course; and hospitality results offer consumer insights beyond the headlines.
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Paramount Skydance CEO David Ellison told Warner Discovery that its CEO would have the chance to join him as co-CEO if an deal took place. Photo: Monica Schipper/WireImage/Getty Images
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Warner Bros. Discovery has rebuffed three acquisition offers from rival entertainment giant Paramount Skydance, including one that offered CEO David Zaslav a role in running the combined company, Joe Flint reports.
Paramount CEO David Ellison also made a case in letters to the Warner Discovery board for why the company was the ideal suitor compared with other potential buyers, people familiar with the matter said.
And Paramount has raised its offers from $19 a share in September to $22 in a second offer and then $23.50 last week, the people said.
Paramount is trying to pre-empt Zaslav’s plan to split Warner Discovery in two, opening the way for a potential bidding war for the side of the business that will get the Warner Bros. movie studio, HBO and the company’s streaming assets.
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Content from our sponsor: Deloitte
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Klarna CMO on Marketing in the AI Era
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Klarna is evolving beyond its buy-now, pay-later roots with a balanced approach to marketing that combines data-driven decisions and emotional connections. Read More
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Southwest has been trying to change its brand image and generate more revenue. Photo: Kylie Cooper/Reuters
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Southwest Airlines said Wednesday its new fees for checked bags and other perks are already bolstering sales, an encouraging sign for its effort to shed its discount persona and lean into premium offerings, Dean Seal reports.
The largest U.S. domestic carrier by passengers said that demand for flights picked up in early July and maintained momentum in the ensuing months.
“We quickly implemented many new product attributes and enhancements, and the results are showing,” Chief Executive Bob Jordan said.
The gains mark a turnaround from the first half of the year, when geopolitical tensions and economic uncertainty from President Trump’s tariff campaign weighed on consumer confidence, eating into travel demand and airline revenues.
The Dallas-based airline said it is looking to deliver another quarterly operating-revenue record in the final three months of 2025, which includes the busy holiday travel season.
Related: American Airlines lifted its profit target for 2025. [WSJ]
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“I don’t feel comfortable building that robot army if I don’t have, at least, influence over it.”
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— Elon Musk on the upcoming vote on his new pay package worth as much as $1 trillion. Musk emphasized to investors the importance of the package—worth an additional 12% stake over 10 years—in securing his control of the company as it expands into AI and projects like its humanoid robot Optimus.
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Hospitality results are providing a window into consumer health beyond the headlines about stock-market headlines. Photo: Angus Mordant/Bloomberg News
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Wyndham Hotels & Resorts cut its full-year outlook after logging lower-than-expected revenue in the third quarter, Katherine Hamilton reports.
Investors and analysts are watching the travel industry to get better visibility into how the U.S. consumer is faring.
Airlines have said travelers are recovering after a tariff-related slump this spring (see Southwest above), and especially among wealthier fliers. But some analysts think lodging companies will lag that trend because they rely on consumers with a wider range of incomes.
Hilton Worldwide said Wednesday morning that its revenue per available room fell 1.1%, as occupancy and average daily rates both slipped.
Hilton trimmed its full-year outlook, too, lowering the upper end of its expected range for revenue per available room.
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New job cuts in Meta’s AI division, according to an internal memo that was viewed by The Wall Street Journal and a person familiar with the matter. The cuts won’t touch TBD Lab, the new team that houses most of Mark Zuckerberg’s multimillion-dollar hires, the memo said.
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The maker of Play-Doh, Nerf and Magic: The Gathering now expects revenue to grow in the high-single digits this year. Photo: Andrew Kelly/Reuters
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Hasbro raised its full-year outlook and said sales are ramping up ahead of the holidays, after continued strength across its Wizards of the Coast business boosted third-quarter profit and revenue. [WSJ]
Meet the Midwestern department store chain attracting buzzy brands like Dagne Dover, Ana Luisa and Lulus. [Modern Retail]
Pizza Hut, Hyundai and Applebee’s have jumped on the “Group 7” TikTok trend. [Ad Age]
Unilever's CEO said the company’s latest results demonstrate progress toward its goal of becoming “a marketing and sales machine” that will increase related spending every year. [MarketingWeek]
Departing Oglivy creative executive Rafael Rizuto was named chief creative officer of New York and the Americas at Accenture’s Droga5. [Adweek]
How pharmaceutical companies are making sure they reach Hispanic audiences. [Fierce Pharma]
The Defense Department announced a “new Pentagon press corps” stocked with outlets that accepted the restrictions that were rejected by many of their predecessors. [Axios]
Pitchfork plans to add comments to its site for the first time in its 30-year history. [Pitchfork]
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