☕ Second wind

The potential Warner Bros. Discovery-Paramount merger... [Advertisement] December 22, 2023 [View Online]( | [Sign Up]( | [Shop]( [Morning Brew]( PRESENTED BY [Ray-Ban Meta]( Good morning. It’s time for us to set the OOO message, say “See you next year!” to our colleagues, and prepare to fall in love with the guy who works on his dad’s Christmas tree farm in our picturesque hometown of 200 people. The Brew office is closing through New Year’s, and this is our final edition of the year. Well…not really. We’ve prepared a bunch of newsletters recapping 2023 that will hit your inboxes starting tomorrow, so in reality, we aren’t going anywhere. Merry Christmas and Happy Holidays to you and your families. Thanks so much for spending your mornings with us this year. —Cassandra Cassidy, Matty Merritt, Molly Liebergall, Sam Klebanov, Adam Epstein, Neal Freyman MARKETS Nasdaq 14,963.87 +1.26% S&P 4,746.75 +1.03% Dow 37,404.35 +0.87% 10-Year 3.894% +1.7 bps Bitcoin $43,774.62 +0.29% Paramount $15.07 -2.77% *Stock data as of market close, cryptocurrency data as of 12:00am ET. [Here's what these numbers mean.]( - Markets: Stocks swung back [up]( yesterday, rebounding from a rough Wednesday to resume their late-year momentum. But it was a down day for Paramount and Warner Bros. Discovery following reports that the two entertainment giants could try to merge next year. Both stocks ticked down as investors contemplated a world in which HBO and Nickelodeon are part of the same company.  ENTERTAINMENT [Warner Bros. Discovery and Paramount might merge]( [Warner Bros.]( Aaronp/Bauer-Griffin/Getty Images Hopes of an NCIS x Nathan Fielder crossover series are more alive than ever. On Wednesday, [Axios]( reported that Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish to discuss a potential merger of the two media conglomerates. Paramount, whose chairwoman Shari Redstone is reportedly [shopping around]( for a buyer, has $15 billion in debt. Meanwhile, WBD, which has worked this year to reduce its own debt (now $45 billion), is apparently open to acquiring a rival like Paramount to better compete with Disney and Netflix. A combination of WBD’s and Paramount’s streaming services could seriously shake up the [streaming wars]( - Max and Discovery+, owned by Warner Bros., and Paramount+ have a combined 158 million subscribers, which would create the world’s second-biggest service, behind Netflix with 247 million subs, according to the Wall Street Journal. - WBD would get the best of Paramount’s franchises, like Mission: Impossible, Terminator, and Star Trek, while Paramount users would have access to the DC universe, Harry Potter, and Lord of the Rings from Warner Bros. Discovery. - Paramount would also fill a gaping hole in WBD’s programming: NFL rights. But it’s still early Even though US antitrust regulators have been saying “no deal” more than Howie Mandel lately, executives are confident a deal would go through, according to Axios. That’s primarily because WBD doesn’t own a broadcast network (Paramount owns CBS). But a merger would still come with scrutiny: The combined company could hold as much as 35%–40% of the linear TV market, per the Wall Street Journal. Comcast might be in the mix, too…NBCUniversal (owned by Comcast) isn’t in merger discussions [right now]( but WBD’s talks with Paramount could be a tactic to draw out NBCU and see if it’s a better match, CNBC reported. Zoom out: The two CEOs just met for lunch—no papers are signed yet. But if it goes through, the deal could headline a big comeback for M&A in 2024. With the Fed set to slash interest rates, mergers that have waited for a more stable economic [environment]( are ready to bust out the gate.—CC   PRESENTED BY RAY-BAN META [The next generation of smart glasses]( [Ray-Ban Meta]( There’s nothing better than creating lifelong memories with your loved ones. Imagine being able to capture them from your unique POV as they happen. Capture life’s best moments—and look good doing it—in [Ray-Ban Meta smart glasses](. They’re designed for living in the moment, helping you [share the memories hands-free](. Jam to your favorite songs via built-in, open-ear speakers that keep you connected to the world around you, call or send messages without having to pull out your phone, and get your questions answered by Meta AI. And with a 12 MP camera and five-mic system, you can livestream directly to Facebook and Instagram. The best part? The Ray-Ban Meta collection is available in a variety of colors, lenses, and sizes, including the iconic Wayfarer. [Check ’em out](. WORLD [Tour de headlines](#) [China's President Xi Jinping and US President Joe Biden shake hands]Saul Loeb/AFP via Getty Images US and Chinese militaries are on speaking terms again. For the first time in over a year yesterday, the highest-ranking US military officer, the chairman of the Joint Chiefs of Staff, [spoke with his Chinese counterpart](. The top brass hopped on a video call to discuss “global and regional security issues” and the need for lower-level talks. In 2022, China’s military stopped talking to the US in response to what it saw as a provocative trip to Taiwan taken by then-House Speaker Nancy Pelosi. But President Biden and China’s leader, Xi Jinping, recently met in San Francisco and agreed that the two superpower militaries should resume talking regularly to diffuse tensions. A deadly mass shooting shook the Czech Republic. A student at Charles University in Prague killed at least [14 people]( and injured dozens more yesterday. He’s also suspected of killing his father earlier in the day and two other people last week. Students were told to barricade themselves in classrooms, and some had to crouch on a ledge to escape the shooter. Police sealed the area and said the perpetrator had been “eliminated.” The interior minister called the devastating violence unprecedented in the country, which has a low gun crime rate. Authorities said that the gunman might have been inspired by a shooting in Russia earlier this year. There might be a problem with your Honda. The Japanese carmaker said yesterday that [it’s recalling]( 22 Honda and Acura models released between 2017 and 2020 over a faulty fuel pump impeller. The component helps deliver gas to the engine, and a defective one might cause a car to stall or fail to start, though Honda says it has not received any reports of crashes or injuries related to the issue. Still, the problem means 2.5 million vehicles in the US will be recalled. Affected vehicle owners can get their fuel pump replaced free of charge once the automaker starts sending notices in February. ENERGY [OPEC loses another country]( [A gold oil drum]( Francis Scialabba Angola is taking its oil and going solo. The African nation said it was [leaving]( the Organization of the Petroleum Exporting Countries (OPEC) yesterday, becoming the latest on a growing list of countries ditching the Saudi-led club as its power wanes. Why? Angola, which was one of OPEC’s largest African oil producers, got pretty peeved at the cartel when it cut Angola’s oil output quota by 25% in November. Big picture: OPEC wants to be able to throttle production or slam its foot on the…gas whenever necessary to maximize oil profits, so it needs oil-producing bigwigs. With Angola’s departure, the group is down to 12 members (an additional 11 ally countries comprise OPEC+, which Brazil will join next year). Recently, oil prices have been hovering around $75 per barrel (they dropped $1 after Angola announced its departure, before regaining some), even after the cartel lowered production to try to boost prices, upsetting some members. Indonesia, Ecuador, and Qatar have all left the group in the last seven years. OPEC’s power is ebbing. The group only controls ~[51%]( of the world’s crude oil market share, according to the International Energy Agency (IEA), the lowest since it expanded in 2016 to include OPEC+ countries. And countries outside of OPEC and OPEC+ are filling the gaps as the organization pulls back. The US Energy Information Administration said US crude oil output hit a record 13.3 million barrels per day last week. Plus, the market is shrinking as the world turns to greener alternatives. Oil demand is expected to peak before 2030, according to the IEA.—MM   TOGETHER WITH ENERGYX [EnergyX]( Demand for lithium—the essential component in EV batteries—is projected to soar 20x by 2040. Perfect timing for [EnergyX](. Their technology extracts up to 300% more lithium than traditional methods. That’s why General Motors led a $50m funding round in EnergyX earlier this year. Now you can join them by [investing and becoming an EnergyX shareholder](. SPORTS [The Super League has new life]( [undertaker]( WWE via Giphy A $4 billion plan to create a new elite soccer league across the pond may be getting a second wind, thanks to a fresh court ruling that’s essentially the legal version of letting your younger sibling come, too. ICYMI…in 2021, a dozen of the best soccer clubs in Europe [announced]( they would join the new European Super League—a high-paying competitor to the UEFA Champions League—but many of them quickly [backed out]( after widespread public disapproval. UEFA and FIFA threatened to sanction clubs participating in the Super League, effectively killing it… …until now. The European Court of Justice [ruled]( yesterday that UEFA and FIFA acted unlawfully by restricting clubs’ movements in 2021 and that they can’t forbid new competition from forming. The company behind the Super League, A22, then released an [updated plan]( to… - Replace the Champions League with a 64-club men’s competition and a 32-club women’s competition. - Stream the Super League for free on a new platform that would make money from advertising, premium subscriptions, and sponsorships. Many clubs have responded with sarcastic encouragement for the new league’s second attempt, as fans remain [united]( against the idea. It’s not without its supporters, though: Spanish juggernauts Real Madrid and Barcelona are backing the venture. Not on his watch. Yesterday, British Prime Minister Rishi Sunak vowed to [ban]( Premier League clubs from joining the Super League.—ML   GRAB BAG [Key performance indicators](#) [Buffalo Bills quarterback Josh Allen]Timothy T. Ludwig/Getty Images Stat: You won’t be subjected to more Travis Kelce ads during Saturday’s NFL game on Peacock—at least not in the fourth quarter. The NFL and the NBCUniversal-owned streaming platform promise a completely [commercial-free]( final quarter for the game between the Buffalo Bills and Los Angeles Chargers, a first in league history. The ad-free finale means the game will have about 40% fewer ads than normal and an additional 12 minutes of “game-related content,” per Adweek. Peacock, which will be fine with losing out on the ad revenue if it can convert viewers into paying subscribers, recently ponied up $110 million for the exclusive rights to a Jan. 13 playoff game, the Wall Street Journal reported. Quote: “Duplicative language without appropriate attribution.” Most people would just call that plagiarism, but Harvard is not most people. That’s the language the elite university used to describe [issues with the 1997 doctoral dissertation]( of its president, Claudine Gay. Plagiarism allegations were surfaced by conservative critics following Gay’s controversial appearance before Congress earlier this month to discuss antisemitism on college campuses. Harvard stood by Gay after that fiasco and reaffirmed its support amid this newer scandal, promising that the president “will update her dissertation correcting these instances of inadequate citation.” Read: The new American Dream is to get MrBeast to pay off your debt. ([TechCrunch]( QUIZ [Last quizmas]( [New Friday quiz image]( The feeling of getting a 5/5 on the Brew’s final News Quiz of the year has been compared to closing your laptop one final time before the holiday break. It’s that satisfying. [Ace the quiz](. NEWS [What else is brewing](#) - [Rudy Giuliani]( filed for bankruptcy after a jury ordered him to pay $148 million for defaming two former Georgia election workers. - [Ikea]( warned that Houthi attacks on commercial ships in the Red Sea could delay its deliveries. - [Bird flu]( is likely to spread in Antarctica, posing existential threats to some species, including emperor penguins, according to experts. - [Vin Diesel]( was sued yesterday by a former assistant, who accused the Fast & Furious actor of sexual battery. RECS [Friday to-do list] Watch: Good Work [investigates]( why the Winklevii are in court again. Bonus watch: It’s the holiday season, which means it’s time to re-up that [gum commercial]( that made everyone cry. Contain yourself: [A deep dive]( into the office cubicle’s big comeback. Tour de shame: A list of the world’s [worst tourists]( of 2023. Boost your business: Simplify billing and avoid admin hassles with [Finli](. Ditch expensive transaction fees and get paid faster with a suite of invoicing + CRM tools. [Risk-free for 30 days]( *A message from our sponsor. GAMES [The puzzle section](#) Picdoku: While our puzzles are anything but cookie-cutter, today’s Picdoku is, alas, about cookie cutters. [Play it here](. Friday puzzle Here is a puzzle from the iconic British TV game show Only Connect. It’s not easy, but this is the final Friday Puzzle of the year, and you’re about to have a little more time on your hands—you might need to use it. What connects the words in each of these four groups? - Group prepared firm series - Design ideal replica mannequin - Ban pub except counter - Ignite trivial brilliance fair SHARE THE BREW [Share Morning Brew]( with your friends, acquire free Brew swag, and then acquire more friends as a result of your fresh Brew swag. We’re saying we’ll give you free stuff and more friends if you share a link. One link. Your referral count: 0 [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( ANSWER Each word in a group can be a synonym for a separate word. - Group prepared firm series = set - Design ideal replica mannequin = model - Ban pub except counter = bar - Ignite trivial brilliance fair = light Word of the Day Today’s Word of the Day is: fiasco, meaning “a complete failure, especially in a ludicrous or humiliating way.” Thanks to Dave from Richmond, Virginia, and others for the unchaotic suggestion. Submit another [Word of the Day here](. ✳︎ A Note From EnergyX This is a paid advertisement for EnergyX's Regulation A+ Offering. Please read the offering circular at [invest.energyx.com/](. Written by [Adam Epstein]( [Neal Freyman]( [Cassandra Cassidy]( [Matty Merritt]( [Molly Liebergall]( and Sam Klebanov Was this email forwarded to you? Sign up [here](. 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