The Rundown Netflix Walks Away From Warner Deal, Block Cuts Half Its Staff for “AI”
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Feb 27, 2026 Markets stage a strange rotation with big-name tech wobbling while indexes slip. Inflation heats up as January wholesale prices jump. Netflix backs out of a major studio deal amid takeover drama. Cloud GPU maker CoreWeave warns of debt and weak guidance. Payment firm Block slashes its workforce citing AI efficiency. Americans increasingly move abroad, driven by remote work.
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Wholesale Inflation Jump Signals Slower Fed Cuts
- Wholesale inflation is heating up with headline PPI +0.5% and core PPI +0.8% in January.
- Core wholesale prices are running 3.6% year‑over‑year, suggesting consumer inflation and delayed Fed rate cuts.
Netflix Exits Warner Deal And Collects Big Breakup Fee
- Netflix walked away from its deal to buy Warner Bros Discovery after Paramount topped their offer at $31 per share.
- Netflix will collect a $2.8 billion breakup fee and its stock jumped nearly 10% after abandoning the merger.
Paramount Win Brings Heavy Debt And Regulatory Risk
- Paramount prevailed with a higher bid but now faces a challenging financial picture and regulatory uncertainty.
- Larry Ellison's backing helps but Paramount will carry heavy debt, making the deal risky and possibly ripe for future renegotiation.