Warner Bros. is advising shareholders to turn down a bid from Paramount Skydance, asserting that a competing offer from Netflix would provide better benefits for consumers. In a statement on Wednesday, Warner Bros. expressed confidence that a collaboration between Netflix and Warner Bros. would enhance consumer options, expand audience reach for creative content, and foster long-term growth. The company highlighted Netflix’s extensive portfolio of iconic franchises and studio capabilities as complementary to its existing business.
Paramount, on the other hand, made a hostile bid last week, urging shareholders to reject Warner Bros.’ agreement with Netflix. Paramount offered $30 US per Warner share compared to Netflix’s $27.75 US bid. While Warner Bros.’ board favors the Netflix deal, Paramount’s bid remains on the table for shareholders to consider, encompassing the acquisition of the entire company, including CNN and Discovery.
Unlike Paramount’s proposal, Netflix’s offer excludes the purchase of Warner Bros.’ cable operations. If approved by regulators and shareholders, Netflix’s acquisition will finalize after Warner completes its planned separation of cable operations. Paramount reaffirmed its offer and encouraged Warner Bros. Discovery shareholders to endorse its “superior offer,” emphasizing the benefits for shareholders, consumers, and the creative sector.
Both takeover bids are subject to rigorous regulatory scrutiny as they could significantly reshape the entertainment and media industry. Critics of Netflix’s bid express concerns about market dominance if combined with Warner’s HBO Max, while Paramount’s Paramount+ streaming service is comparatively smaller. Warner Bros. defended the deal in a securities filing, emphasizing its positive impact on the entertainment industry.
The bids from Netflix and Paramount have raised apprehensions regarding their implications for film and TV production. While Netflix agreed to honor Paramount’s theatrical release commitments, concerns linger about its online release strategy. Paramount’s interest in Warner’s cable networks and news business would consolidate CBS and CNN, potentially prompting editorial control shifts. U.S. President Donald Trump’s involvement in the deal suggests political considerations will influence regulatory approval.
Trump’s reservations about Netflix’s deal stem from concerns about market dominance. His ties to Larry Ellison, Paramount’s CEO’s father, who is linked to the bid, raise questions about potential conflicts of interest. Affinity Partners, associated with Trump’s son-in-law Jared Kushner, initially supported the Paramount bid but later withdrew. Trump’s unpredictable decision-making style and personal grievances have added complexity to the ongoing bidding war.