If Warner’s board changes its mind and deems Paramount’s latest offer to be superior, Netflix could revise its bid.
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Warner Bros. Discovery (WBD) said it is considering a new acquisition offer from Paramount Skydance, but will continue to recommend a competing offer from Netflix to shareholders in the meantime.
Warner revealed on Tuesday that it had received a revised offer from Paramount after a seven-day period to renew negotiations with the Skydance-owned company ended on Monday. Paramount, which is run by David Ellison, an ally of President Donald Trump and the son of Oracle co-founder Larry Ellison, confirmed it had submitted a proposal, but neither company would provide details. The company was widely expected to raise its offer.
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WBD’s acquisition would reshape Hollywood and the broader media landscape, putting HBO Max, cult favorites like Harry Potter, and, depending on the winner of the Netflix vs. Paramount tug of war, potentially even CNN under a new roof.
Paramount wants to buy all of Warner Bros., including networks like CNN and Discovery, and presented a hostile all-cash, $77.9 billion offer directly to shareholders days after the Netflix partnership was announced in December. Taking into account debt, the bid would offer Warner shareholders $30 per share, equating to an enterprise value of about $108 billion.
Paramount insisted on Tuesday that the tender offer is on hold while Warner evaluates its latest offer.
Netflix wants to buy Warner’s studios and streaming business alone for $72 billion in cash, or about $83 billion including debt. Warner’s board has repeatedly supported the deal, insisting on Tuesday that its deal with Netflix is still valid.
Warner shareholders are scheduled to vote on Netflix’s proposal on March 20th.
If Warner’s board changes its mind and deems Paramount’s latest offer to be superior, Netflix would have the opportunity to match or modify it, potentially setting the stage for a new bidding war. You can also choose to walk away.
Further integration
Paramount, Warner and Netflix have been locked in a heated back-and-forth in recent months over who can get the most powerful deal. But along the way, lawmakers and entertainment industry groups sounded the alarm, warning that buying all or part of Warner’s business would only further consolidate the power of an industry already run by a few big players. Critics say this could lead to job losses, reduce the diversity of filmmaking and create further headaches for consumers already facing rising streaming subscription costs.
Taken together, these raise significant antitrust concerns and the Warner sale could hinge on who gets the regulatory green light. The U.S. Department of Justice has already begun a review, and other countries are expected to do the same.
Both Paramount and Netflix say their proposals are good for consumers and the industry as a whole. And both companies have publicly attacked each other in regulatory discussions.
Paramount pointed to Netflix’s much larger market value and argued that the streaming giant’s acquisition of Warner would only further strengthen its dominance in the subscription video-on-demand space. But Netflix is trying to convince regulators that it is competing with its extensive video library, particularly Google’s YouTube, the most-watched television distribution company in the United States.
Paramount’s bid would create a studio bigger than market leader Disney and combine two major television operators, which some Democratic senators said would give it control of “virtually everything Americans watch on television.”
Control of CNN will also be handed over to the conservative Ellisons shortly after the conservative Ellisons bought CBS News and installed right-wing opinion editor Bari Weiss, who had no TV experience, as editor-in-chief. The network has settled a $16 million lawsuit brought by Trump alleging that CBS’ 60 Minutes edited an interview with Kamala Harris to favor his 2024 presidential rival. It also appointed former Trump administration official Kenneth Weinstein as an ombudsman to investigate allegations of bias.
Ellison reportedly visited the White House in December and told Trump that Paramount would implement “fundamental reforms” if it acquired CNN’s parent company.
Most recently, President Trump called on Netflix to remove former U.S. National Security Adviser Susan Rice from its board of directors in a post on Truth Social on Saturday. Rice, a Black woman, worked for former Democratic Presidents Barack Obama and Joe Biden.
“This is a business deal. It’s not a political deal,” Netflix CEO Ted Sarandos told BBC Radio 4’s flagship Today program on Monday. “This transaction is being managed by the U.S. Department of Justice and regulators in Europe and around the world.”
After earlier making unprecedented hints about his involvement in the deal, President Trump walked back those comments and maintained that regulatory approval was up to the Justice Department.
