Warner Bros Discovery is expected to advise shareholders to reject a hostile takeover attempt from Paramount Global, dealing a significant setback to Paramount’s $108 billion bid, according to multiple news reports. Euronews has reached out to Warner Bros Discovery for comment.

Paramount launched the takeover attempt in early December, offering $30 per share in cash directly to Warner Bros shareholders after the studio’s board rejected several acquisition proposals. Netflix has also made an offer of $27.75 per share in cash and stock. Since the bidding intensified, Warner Bros shares have risen to around $30, up from roughly $24 earlier this month.

The battle for Warner Bros highlights a high-stakes contest for influence in the U.S. media industry. Acquiring the studio would provide access to an extensive content library, including HBO programming and the DC Comics franchise, home to iconic characters such as Batman and Superman. Warner Bros’ stock has long been viewed as undervalued due to high debt and intense competition from streaming giants like Netflix, Amazon, and Apple.

Netflix formally offered $82.7 billion for Warner Bros Discovery on December 5, a deal backed by the studio’s board. The agreement includes HBO Max and HBO content, with Warner Bros CEO David Zaslav describing it as combining “two of the greatest storytelling companies in the world.” If Warner Bros were to break its agreement with Netflix, it would owe the streaming service $2.8 billion in termination fees.

Paramount faces additional challenges, particularly regarding the financing of its bid. Larry Ellison, Oracle co-founder, is a principal backer of Paramount Skydance’s offer, providing substantial equity and attracting other investors. His son, David Ellison, serves as chairman and CEO of Paramount Skydance. Some analysts view the bid as potentially influenced by political considerations due to the Ellisons’ close ties to former President Donald Trump and their role as major Republican donors.

Trump himself publicly weighed in on the sale, insisting that CNN, owned by Warner Bros’ parent company, should be divested to ensure broader political balance. Jared Kushner, Trump’s son-in-law, was initially listed as a backer of Paramount’s bid through his private equity firm, Affinity Partners, but the firm later withdrew from the financing consortium.

Trump has recently criticised Paramount, claiming he is not as close to the company as suggested. His remarks followed CBS’ cancellation of The Late Show, hosted by Stephen Colbert, and a $16 million defamation settlement linked to a 60 Minutes interview with then-Vice President Kamala Harris. Trump said on social media that he felt the company had treated him worse than expected.

As Warner Bros Discovery prepares to guide shareholders on Paramount’s offer, the battle underscores the high stakes for control of one of Hollywood’s most valuable media and entertainment companies.

PayPal has applied to establish a Utah-chartered bank, a move that would allow the company to hold deposits and increase lending capacity to small businesses. The San Jose-based online payments giant aims to strengthen its banking operations and offer more direct financial services, reducing its reliance on third-party partners.

While PayPal already provides small-business loans through products like PayPal Working Capital, it does so mainly in partnership with traditional banks, using external balance sheets. Creating PayPal Bank would allow the company to fund loans more directly, operate with greater efficiency, and maintain increased control over deposit and lending activities.

“Securing capital remains a significant hurdle for small businesses striving to grow and scale,” said Alex Chriss, PayPal president and CEO. “Establishing PayPal Bank will strengthen our business and improve our efficiency, enabling us to better support small business growth and economic opportunities across the US.”

In addition to lending, PayPal expects to offer interest-bearing savings accounts to customers, expanding its financial product offerings beyond payments and credit services. The company already holds a banking licence in Luxembourg, allowing it to provide certain banking services in Europe.

PayPal is pursuing a state-chartered industrial loan company (ILC) licence in Utah. ILCs are a special category of banks allowed in only a few US states, including Utah, and can be owned by non-bank parent companies such as fintech firms or retailers. Unlike traditional banks, ILCs are not required to register as a bank holding company under the Bank Holding Company Act, which subjects the entire corporate group to Federal Reserve oversight.

Utah has long been a hub for ILCs due to its established regulatory framework and experience overseeing banks owned by non-banking corporations. Major companies with Utah-based ILCs include Ally Bank, originating from General Motors’ financing arm, and Toyota Financial Savings Bank, which supports Toyota’s auto-financing business.

If PayPal’s application is approved, Mara McNeill will serve as President of PayPal Bank. McNeill brings over 25 years of experience in banking, commercial lending, and private equity. Before joining PayPal, she oversaw a similar transition to an ILC as President and CEO of Toyota Financial Savings Bank.

PayPal’s move signals a growing trend of fintech companies seeking more control over financial services. By establishing its own bank, the company hopes to streamline operations, offer more flexible products to small businesses, and strengthen its foothold in the US financial services market.

The application is now under review by Utah regulators, who will assess the company’s suitability to operate a state-chartered bank. Approval would mark a significant expansion for PayPal, combining its payments expertise with a broader banking role in the domestic market.

European bank stocks recorded their strongest year on record in 2025, driven by resilient economic growth, high profit margins, and robust capital returns. Investors are now focusing on earnings growth, efficiency improvements, and sustained shareholder payouts as the sector enters 2026.

The EURO STOXX Banks Index surged 76 percent year-to-date as of December 12, surpassing the previous record gain of 74 percent in 1997. Every constituent of the index posted positive returns, with several banks achieving triple-digit gains. Notable performers include Société Générale and Commerzbank, which rose 139 percent and 136 percent respectively. Spain’s Banco Santander climbed 110 percent, while ABN Amro increased 102 percent. Other strong performers included BBVA (+101%), CaixaBank (+96%), Deutsche Bank (+92%), Bankinter (+86%), and Bank of Ireland (+84%).

Analysts attribute the rally to a combination of favourable macroeconomic conditions. Interest rates remained high enough to support net interest margins, economic growth stayed strong enough to protect asset quality, and banks maintained capital buffers that allowed generous shareholder distributions. The European Central Bank paused its rate-cutting cycle in June 2025, keeping the deposit facility rate at 2 percent. While below the peaks of 2023–24, these levels were above pre-pandemic norms, helping lenders preserve elevated margins.

Economic performance across the eurozone exceeded expectations. Germany avoided a deep industrial recession, southern Europe benefited from strong tourism and EU investment flows, and fiscal policy remained mildly supportive. Credit conditions held steady, loan losses stayed contained, and investor confidence in bank balance sheets strengthened. Strong capital levels allowed banks to increase dividends, share buybacks, and other forms of shareholder returns.

Valuations also contributed to the rally. European banks began 2025 trading at substantial discounts to book value and global peers, reflecting years of negative interest rates, heavy regulation, and subdued profitability. Global portfolio flows further supported the sector, with international investors rotating into European value stocks and financials, aided by a stronger euro.

Looking ahead to 2026, analysts remain broadly optimistic. Goldman Sachs analyst Chris Hallam said investor attention is likely to shift from interest rates and credit to growth and efficiency. He expects ongoing deposit inflows, deposit-focused strategies, and gradual loan growth to drive earnings. Returns are projected to remain in the mid-teens over the medium term, supported by well-capitalised banks capable of deploying capital through organic growth, selective mergers and acquisitions, and shareholder distributions.

Goldman Sachs highlighted high-conviction European bank stocks with potential upside, including UBS Group (34%), UniCredit (29%), Banco BPM (29%), Julius Baer (25%), Alpha Bank (21%), and KBC Group (21%). Analysts suggest that, even after a historic 2025, the sector’s rally may not yet be complete.

After a record-breaking year, European banks are entering 2026 not just as a recovery story but as a sector increasingly evaluated on growth execution, efficiency gains, and disciplined capital management.