Good Monday morning again. Welcome to Squawk on the Street. I'm Sarah Eisen with David Faber and Mike Santoli. We are live as always from Post 9 of the New York Stock Exchange. Carl has the morning off. Coming up this hour, breaking developments this morning as Paramount launches a tender offer for Warner Brothers Discovery following last week's bid from Netflix.

We'll tell you what Paramount Skydance CEO David Ellis and just told David about the offer.

And speaking of deals, IBM says it's buying data company confluent in an $11 billion acquisition and a move to boost its position in the AI race.

We'll talk to IBM CEO,

Arvin Krishna, first on CNBC, about the news. And a key Supreme Court hearing taking place this

hour in a test of presidential power that could have implications for the Fed. We'll explain.

Straight ahead. All right, let's start off, though, with that breaking news. We got at the top of the

hour, of course, involving Warner Brothers Discovery. Paramount, as Sarah just told you, has launched a

all-cash, $30 a share tender offer to acquire the company. What this has the effect of doing,

of course, is putting to shareholders what they believe was a superior offer to the one that was accepted by

Warner Brothers Discovery namely from Netflix valued at some $27.75 a share, 85% of which

was cash, the remainder in stock. By the way, I do want to point out is to take a look at

Netflix. It is actually below the bottom of the collar. So there is ever so slightly some erosion in the overall value of the deal, given $3.50

of it is made up of stock, but there's a collar.

But once you get to the bottom or below, the ratio stays the same.

And so there is a bit of erosion there.

But that's not what David Ellison joined me to talk about this morning.

What he wanted to talk about, of course, as you might imagine, was his feeling that they were

disadvantaged throughout the process and that, in fact, when you look at both companies

from a competitive standpoint in terms of what a Netflix ownership of Warner Brothers would

look like from an antitrust perspective

versus paramount, not to mention, of course, simply what Ellison says is the pro-competitive

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