Warner Bros gets new offer from Paramount but still recommends Netflix bid | Media News
Warner Bros Discovery Evaluates Competing Buyout Offers
Warner Bros Discovery (WBD) is currently assessing a revised acquisition proposal from Paramount Skydance while continuing to recommend a competing offer from Netflix to its shareholders.
In a statement released Tuesday, Warner revealed that it received a new offer from Paramount following a one-week renewal period for negotiations, which concluded Monday. Paramount, led by David Ellison, the son of Oracle cofounder Larry Ellison, confirmed the submission of its proposal, though specifics were not disclosed. Industry experts anticipated that Paramount had increased its previous offer.
A successful acquisition of Warner Bros could have significant implications for the media landscape, potentially bringing HBO Max and popular franchises like Harry Potter, along with CNN, under a new ownership structure, depending on which entity prevails.
Paramount aims to acquire Warner Bros in its entirety with an all-cash offer of $77.9 billion, made public shortly after Netflix’s proposal was announced in December. This bid would effectively value Warner’s shares at $30, resulting in an estimated enterprise value of approximately $108 billion when accounting for debt.
On Tuesday, Paramount reiterated that its offer remains valid while Warner evaluates its latest bid. In contrast, Netflix seeks to acquire only Warner’s studio and streaming operations for $72 billion in cash, or around $83 billion including debt. WBD’s board has consistently supported the agreement with Netflix, maintaining that it remains binding.
A vote by Warner shareholders on the Netflix proposal is scheduled for March 20. If the Warner board finds Paramount’s offer more favorable, Netflix could either revise its bid or withdraw entirely, setting the stage for a potential bidding war.
The ongoing negotiations come amid growing concerns from lawmakers and entertainment industry groups regarding consolidation within the sector. Critics warn that either acquisition could lead to fewer job opportunities, reduced diversity in filmmaking, and increased costs for consumers amid rising streaming subscription fees.
Antitrust issues loom large over any potential sale, with the U.S. Department of Justice already examining the proposals, and other countries expected to follow suit. Both Paramount and Netflix have defended their offers, asserting that they would benefit consumers and the industry at large.
Paramount has criticized Netflix’s larger market share, claiming that its acquisition of Warner would enhance Netflix’s dominance in the subscription video-on-demand market. Conversely, Netflix contends that it faces significant competition from broader platforms, notably Google’s YouTube.
Should Paramount’s bid succeed, it would create a studio larger than market leader Disney and merge two major television operators, leading some legislators to express concerns about media concentration in the U.S.
The potential acquisition also raises political sensitivities, particularly concerning CNN’s future management. Recently, the Ellisons acquired CBS News and appointed Bari Weiss, known for her conservative viewpoints, to oversee editorial direction.
In December, David Ellison reportedly met with former President Donald Trump and indicated that substantial changes would be made if Paramount succeeded in acquiring CNN’s parent company. Additionally, Trump has publicly called for Netflix to dismiss former National Security Adviser Susan Rice from its board.
Amid these developments, Netflix CEO Ted Sarandos emphasized the business nature of the deal, asserting that the transaction requires regulatory approval in the U.S. and internationally. Trump has indicated a desire to influence the outcome while downplaying his involvement, leaving final decisions to the Justice Department.
