Market Beats | Netflix Exits as Paramount Closes $111B Warner Deal; Private Equity Giants Compete for Volkswagen’s $9.4B Engine Unit; Anthropic Rejects Pentagon Demands Over AI Military Safeguards; Dell Surges on Strong AI Server Outlook; KKR Credit Fund Plunges as Troubled Loans Mount; OpenAI Closes Record $110B Funding Round at $840B Valuation; US Bank Stocks Post Worst Drop in Ten Months on Private Credit Fears

—— Netflix Exits as Paramount Closes $111B Warner Deal; Private Equity Giants Compete for Volkswagen’s $9.4B Engine Unit; Anthropic Rejects Pentagon Demands Over AI Military Safeguards; Dell Surges on Strong AI Server Outlook; KKR Credit Fund Plunges as Troubled Loans Mount; OpenAI Closes Record $110B Funding Round at $840B Valuation; US Bank Stocks Post Worst Drop in Ten Months on Private Credit Fears

1. Netflix Exits as Paramount Closes $111B Warner Deal

Netflix has officially withdrawn from the race to acquire Warner Bros. Discovery, paving the way for Paramount Skydance to close what would be one of Hollywood’s largest-ever deals at approximately $111 billion.

Netflix first entered the auction in December with an $82.7 billion offer — including assumed debt — targeting Warner Bros.’ studio and streaming assets. The bidding war intensified as Paramount Skydance repeatedly countered with offers for the entire company. Warner Bros.’ board ultimately designated Paramount’s latest bid of $31 per share as the “superior offer.”

In stepping back, Netflix cited financial discipline as its guiding principle. The company stated the deal was “no longer financially attractive” at the price required to match Paramount’s latest offer, and reaffirmed its commitment to organic growth — including roughly $20 billion in content spending planned for this year alone. Markets responded positively:

Netflix shares surged as much as 13% in after-hours trading, signaling investor confidence in the decision to walk away. Warner Bros. shares declined on the news, as hopes for a competitive bidding war faded.

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2. Private Equity Giants Compete for Volkswagen’s $9.4B Engine Unit

Several major private equity firms have advanced in the bidding for a majority stake in Volkswagen’s heavy diesel engine unit Everllence SE, with new offers of at least €8 billion ($9.4 billion), according to people familiar with the matter. Blackstone, Brookfield Asset Management, Advent International, Bain Capital, EQT, and CVC Capital Partners are all among the contenders in the ongoing sales process.

Formerly known as MAN Energy Solutions, Everllence specializes in ship engines and power-plant turbines. The business reported revenues of €4.3 billion and earnings before interest and taxes of €337 million in 2024, per Volkswagen’s annual report.

Volkswagen is pursuing the sale as part of broader efforts to improve profitability and streamline its extensive portfolio of operations. Deliberations remain ongoing, and there is no certainty a deal will be reached.

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3. Anthropic Rejects Pentagon Demands Over AI Military Safeguards

AI company Anthropic has turned down the Pentagon’s latest contract proposal, intensifying a standoff over the conditions under which the US military may use its Claude AI tool. The rejection came just one day before a government deadline that threatened severe consequences if Anthropic did not drop its restrictions.

“These threats do not change our position: we cannot in good conscience accede to their request,” said CEO Dario Amodei in a public statement.

At the heart of the dispute are two safeguards Anthropic insists upon: prohibiting the use of Claude for surveillance of US citizens, and requiring human oversight before any autonomous lethal strikes. The Pentagon, which views these conditions as unnecessary, has pushed for unrestricted access to Claude — one of the only AI systems currently cleared for classified cloud environments.

Despite the impasse, Anthropic said it remains committed to working with defense officials and continues to engage in negotiations.

Since its founding, the company has made responsible AI development central to its mission, with a focus on preventing catastrophic outcomes from the technology.

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4. Dell Surges on Strong AI Server Outlook

Dell Technologies shares jumped roughly 10% in early trading after the company issued an AI server revenue forecast that far exceeded Wall Street expectations. Dell projects approximately $50 billion in AI server revenue for the current fiscal year ending January 2027, with total sales of around $140 billion and earnings of approximately $12.90 per share — all well above analyst estimates.

Chief Operating Officer Jeff Clarke highlighted a record backlog of $43 billion as the company enters the new fiscal year, citing strong demand from cloud computing providers such as CoreWeave and Nscale, as well as major enterprise clients and AI companies.

In the fiscal fourth quarter, total revenue rose 39% year-over-year to $33.4 billion, surpassing the average analyst estimate of $31.7 billion. The infrastructure segment, which includes AI servers, saw revenue surge 73% to $19.6 billion, while the Client Solutions Group grew 14% to $13.5 billion. The server and networking unit posted an operating margin of 14.8%, beating the projected 12.9%.

Dell also announced a $10 billion expansion of its share buyback program. The stock has gained 13% over the past 12 months.

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5. KKR Credit Fund Plunges as Troubled Loans Mount

The number of US nationals applying for British citizenship reached an unprecedented high during the first year of President Donald Trump’s second term. According to Home Office data released Thursday, a total of 8,790 Americans sought citizenship through registration or naturalization in 2025—a 42% surge compared to the previous record of 6,192 set in 2024. The data peaked in the final quarter of last year, with 2,490 individuals filing applications as the new administration stepped up efforts to reshape US institutions and economic policy.

Immigration lawyers cite the “political climate in the US” as a significant motivator for those seeking a more predictable environment abroad. Nick Rollason, head of immigration at Kingsley Napley, noted that while a 2022 rule change allowing citizenship claims via a British grandmother helped boost numbers, the broader trend reflects a desire for global mobility among high earners. This exodus is also visible in education and labor sectors, with British universities reporting a rise in US student interest and UK job postings seeing increased traction from American professionals.

The UK government, while tightening net migration overall, has signaled it welcomes these “high-value” applicants to help fuel national economic growth.

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6. OpenAI Closes Record $110B Funding Round at $840B Valuation

OpenAI has completed its largest funding round to date, raising $110 billion and reaching a post-money valuation of $840 billion. The capital will be deployed toward securing additional computing power and AI talent as the company pursues its ambitious infrastructure roadmap.

Amazon is the standout investor, committing $50 billion — the largest single investment the e-commerce giant has ever made in any company. An initial $15 billion will be deployed upfront, with the remaining $35 billion to follow upon the satisfaction of certain conditions. As part of the agreement, OpenAI will utilize Amazon’s in-house Trainium AI chips and co-develop customized models for Amazon’s engineering teams. SoftBank and Nvidia each contributed $30 billion to the round.

The fundraise comes amid growing scrutiny over the scale of AI infrastructure spending across the industry.

OpenAI alone has previously committed to deploying over $1.4 trillion in AI infrastructure investment. Notably, Amazon is also a major backer of rival Anthropic, and its substantial investment in OpenAI deepens its strategic ties with both leading AI companies simultaneously.

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7. US Bank Stocks Post Worst Drop in Ten Months on Private Credit Fears

US bank stocks suffered their steepest single-day decline since President Trump’s “liberation day” tariff announcements rattled markets last April. The KBW bank index fell 5.8%, with Goldman Sachs dropping 7.5%, Morgan Stanley sliding 6.9%, and Wells Fargo losing 6.4%.

The selloff was driven by intensifying concerns over banks’ exposure to private credit markets. A large KKR-managed credit fund this week reported a surge in troubled loans and falling investment income, stoking broader fears about the health of private markets amid AI disruption risks. KKR, Ares, and Apollo each fell more than 5%, while Blackstone dropped 3.3%. Jim Caron, Chief Investment Officer at Morgan Stanley Investment Management, pointed squarely to private credit exposure as the central concern weighing on bank stocks.

Adding to the turmoil, Wall Street lenders were scrambling to assess losses from approximately £2 billion in financing extended to Market Financial Solutions, a UK-based mortgage lender that collapsed on Wednesday amid fraud allegations. Barclays, Jefferies, and Apollo’s structured credit arm Atlas SP Partners were among those with exposure.

The London-headquartered firm, which had previously lent to a Bangladeshi politician, is accused of double-pledging its collateral prior to its insolvency filing.

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