BizNews Daybreak - Warner takeover goes hostile; Nvidia, Absa, Amazon in SA and more

Seize the day with the freshest news you can use to help you conquer another active business day - from the team at BizNews and our global partners. This episode features the odds on Paramount's fresh $108bn hostile bid for Warner Brothers beating Netflix's board-supported $82bn offer; Nvidia securing a Trump deal on selling new chips to China; traders nervous about tomorrow's rate cut won't happen; and on the local front, we feature the latest info from Absa, Spar, Amazon SA and more..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..Watch here.Listen here.Edited transcript of the BizNews Daybreak.Good morning. The markets are moving, and so are you, from the BizNews studios. This is BizNews Daybreak for Tuesday, the 9th of December 2025. I am Alec Hogg, and here is the context you need to win the day.Media wars: The battle for Warner Bros. DiscoverySurprise, surprise: the takeover bid by Netflix for Warner Discovery is not a done deal. Netflix placed a mammoth $82 billion on the table, which was given the thumbs up by the Warner Bros. Discovery board. However, Larry Ellison’s son, David Ellison - who runs Paramount - has launched a knockout hostile takeover bid of $108 billion.According to Carol Massar and friends at Bloomberg, the situation feels like an episode of Succession. Paramount has launched a hostile bid for Warner Brothers at $30 a share in cash, just days after the company agreed to a deal with Netflix. This offer values Warner Brothers at $108.4 billion, including debt. In comparison, Netflix’s offer stands at $27.75 a share in cash and stock, for an enterprise value of approximately $82.7 billion.CEO David Ellison stated that Warner Brothers investors deserve an opportunity to consider their "superior call". Both bids are raising significant antitrust concerns, and President Trump has indicated he intends to review the deal and the resulting market capitalisation.Polymarket previously held 60% odds that the Netflix deal would close by the end of next year. However, after Trump expressed concerns about market share and his intention to get personally involved, those odds dropped to 23%. Current betting suggests a 42% chance for a Warner Brothers acquisition and 39% for Paramount. Senator Elizabeth Warren opposes both combinations.Tech and trade: Nvidia and clean energyNvidia is betting on President Trump’s dealmaking obsession and has secured a win. Trump has granted Nvidia permission to ship its H200 artificial intelligence chips to China in exchange for a 25% cut of the sales. Following the news, Nvidia’s share price jumped by 2%. Bloomberg’s Annabelle Droulers notes this is a major lobbying win for the business after weeks of discussions.In the energy sector, a federal judge has ruled President Trump’s executive order banning new wind projects as "arbitrary and capricious and contrary to law". The order had effectively halted federal approvals for wind farms, freezing dozens of clean energy projects and potentially impacting jobs. Meanwhile, Trump has granted another bonus to US farmers, ostensibly to help bring down food costs.Markets and economy: Fed uncertaintyThere is growing uncertainty regarding the interest rate cut expected on Wednesday. Traders are becoming anxious about next year’s interest rate path, resulting in a down day on Wall Street with the S&P 500 slumping.Kevin Gordon, head of macro research and strategy at Charles Schwab, noted that the inflation backdrop is becoming trickier due to upside risks from tariffs and fiscal stimulus. He believes the labour market remains relatively resilient, keeping consumer spending active. While investors expect the Federal Reserve to cut rates by a quarter point - its third cut this year - the messaging remains uncertain. Bloomberg’s Michael McKee suggests the Fed Chair may push for a cut to support the labour market, potentially followed by a pause in January. Market Close:S&P 500: Down 0.3% to 6,846. Dow Industrials: Down 0.4%. Nasdaq Composite: Down 0.1%. Commodities: BHP Group is selling part of its stake in an Australian power network to BlackRock for $2 billion..South African Corporate NewsAbsa Trading Update Absa, the last of the big four banks to report, released a trading update for the 12 months ending December. The market responded positively to the voluntary update, driving the share price up 2.5%, taking the year-to-date increase to 17%. Earnings are expected in the low double digits (10–15% growth). The credit loss ratio is falling back into the target range of 75 to 100 basis points. Return on equity is nudging 15%.Spar Financial Results Retailer Spar released full-year numbers to the end of September, revealing a massive R4.8 billion loss compared to a profit of R350 million the previous year. This loss was driven by failed ventures in Poland and Switzerland, which have since been closed. The Irish operation remains profitable, and the South African engine is still idling with revenue nudging up to R133 billion. The board has passed the final dividend to conserve cash and reduce debt, which was halved to just under R10 billion.Sygnia Limited Sygnia’s share price dropped 4.5% despite respectable numbers for the year ending September. Assets under management grew by nearly a third to R461 billion, and after-tax profit rose by 10%. The total dividend increased to 231 cents from 217 cents the previous year.Capitec Acquisition Capitec has acquired a fintech company called WalletDoc for R400 million. WalletDoc focuses on digital commerce and payment processing. While a small acquisition relative to Capitec’s R470 billion market cap, it fills a strategic gap in their transactional capabilities. Capitec shares were down 1% yesterday but remain up 28% for the year.Pepkor and the PIC The Public Investment Corporation (PIC) has increased its stake in Pepkor from 15.5% to 20.2%. Market analyst David Shapiro views Pepkor as a top pick, particularly due to their move into digital finance. Despite this, the share price fell by 2.6% on the news. Amazon in South AfricaAlec Hogg spoke with Robert Koen, the South African-born Managing Director of Amazon Sub-Saharan Africa, about the company's progress since launching locally in May 2024. Performance: Koen stated they have "knocked it out of the park," especially during Black Friday, exceeding all expectations. Customer feedback: Customers appreciate the speed, reliability, and value for money. Political noise: Koen emphasised that despite geopolitical noise, the team remains focused on delivering a great customer experience, noting that Amazon is accustomed to operating in diverse political environments. Market growth: He observed a shift of South African consumers to online retail, though online retail still represents single-digit market share, suggesting significant room for growth..Politics: The G20 and diplomacyDr Michael Louis, Chairman of the Independent Candidates Association, discussed the G20 summit. While he praised the event and the resulting agreements, he emphasised "substance over food," questioning how much will actually be implemented.He noted significant capital injection promises for South Africa, particularly from the Middle East. Louis also referenced a comment by Christo Wiese about nations needing to "know their place," suggesting that South Africa should be cautious not to alienate major economies like the USA through its diplomatic stances.Investment insight: Ray DalioInsights from Ray Dalio of Bridgewater Associates, speaking from Abu Dhabi.Global debt & politics: Dalio highlighted the dangerous combination of high debt service costs, political instability, and the inability of governments to cut taxes or increase spending. He pointed to political turnover in the UK and France as symptoms of economic inability to deliver on promises. Gold & Bitcoin: He reiterated his stance on holding 15% of a portfolio in gold and Bitcoin. He views gold as a type of money and a necessary diversifier when governments devalue fiat currency through debt and printing money. A normal allocation, he suggests, should be between 5% and 15%..Thank you for starting your morning with us. Now, go and seize the day.

BizNews Daybreak - Warner takeover goes hostile; Nvidia, Absa, Amazon in SA and more

Related Stories