• Paramount Skydance launched a USD 108.4B hostile bid for Warner Bros Discovery, challenging Netflix’s earlier USD 82.7B offer.
• The deal involves major franchises like Harry Potter, HBO Max, and Game of Thrones, potentially reshaping streaming and entertainment globally.
• Both bids raise antitrust concerns, include multibillion-dollar breakup fees, and involve lobbying the White House for regulatory approval.

Warner Bros.

Paramount Skydance made a bid worth USD 108.4 billion to acquire Warner Bros Discovery (WBD) at USD 30 a share. This is an attempt to outbid Netflix and establish a media powerhouse to compete with the streaming giant’s dominance.

This bid competes with Netflix’s offer of a share price of USD 27.75 for an enterprise value of USD 82.7 billion including debt. The streaming giant had emerged as the successful bidder ahead of rivals Comcast and Paramount Skydance after a lengthy competition.

This has since changed as Paramount launched a hostile takeover bid at USD 30 a share in cash. The offer values Warner Bros. at USD 108.4 billion, including debt. The bid is said to be backed by Jared Kushner’s Affinity Partners, Saudi & Qatari sovereign funds, and Abu Dhabi’s L’imad Holding.

Entertainment Industry

Netflix’s deal would allow it to acquire Warner Bros Discovery’s film and television studios, HBO and the HBO Max streaming service. However, Paramount bid also includes Warner Bros Discovery’s cable television properties.WBD owns major franchises including Harry Potter and Game of Thrones, and the streaming service HBO Max.

When asked whether HBO would remain a separate streaming service, the co-chief executive Greg Peters said Netflix believed the HBO brand was important for consumers. However, he also adds that it’s still early to determine the specifics of how they will tailor this offering for consumers.

After Paramount submitted its bid on December 8th, the Warner Bros board of directors said it would review the offer. However, it clarified that it was not modifying its recommendation regarding the Netflix bid. 

Regardless of who wins, the deal is set to reshape the entertainment industry. With Warner Bros. films and TV shows, Netflix would wield tremendous new power over the content offered to online audiences. Meanwhile, Paramount aims to merge two legacy studios to counter Netflix, Disney, and Amazon. 

Ultimately,both bids raise major antitrust concerns and involve multibillion-dollar breakup fees, with both sides lobbying the White House.