Key Points
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Netflix’s acquisition of Warner Bros for $82 billion aims to enhance its content library and competitive edge.
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Microsoft’s cloud revenue reached $49 billion last quarter, marking a 26% increase year-over-year, as it capitalizes on growing AI demand.
Netflix (NASDAQ: NFLX) is set to acquire Warner Bros in a significant $82 billion deal, which includes access to renowned content such as Game of Thrones and Friends. This acquisition is projected to bolster Netflix’s long-term earnings growth, with expectations of approximately $2.5 billion in cost savings following integration. Currently, Netflix boasts over 300 million subscribers worldwide.
Meanwhile, Microsoft (NASDAQ: MSFT) reported $49 billion in cloud revenue for the last quarter, driven by its Azure platform, which grew by 40% year-over-year. The company has nearly $400 billion in remaining performance obligations, reflecting a 50% year-over-year increase, indicating substantial enterprise demand for AI services. CEO Satya Nadella emphasized the company’s commitment to leading in cloud and AI technology development.
