Warner Bros Discovery backs Netflix deal over Paramount's $108.4B bid

Warner Bros Discovery has urged its shareholders to reject Paramount Skydance's $108.4 billion takeover proposal, confirming that Netflix's competing deal remains the stronger path for the studio’s future. The move highlights a shift in Hollywood where streaming platforms increasingly shape who controls iconic film libraries and TV networks.

In a formal filing, Warner Bros Discovery’s board said the Paramount bid carries significant risks and dismissed assertions that the Ellison family—one of America’s wealthiest families—are financing the bid. The company also noted that the Netflix agreement provides clearer funding and better long-term value for shareholders.

Earlier this year, Warner Bros Discovery began exploring a sale after receiving multiple expressions of interest from potential buyers, including Paramount Skydance. On December 5, the company announced it had signed a deal to sell its film and streaming units to Netflix for about $72 billion.

What the two offers involve

• Netflix approach: Acquire Warner Bros’ film studio and the HBO Max streaming brand, granting Netflix a vast library for subscribers. The plan envisions keeping Warner Bros’ television networks (CNN, TNT, and others) in a separate company until the closing of the deal.
• Paramount Skydance approach: Seek to buy Warner Bros in full, including its television networks, creating a larger combined group that would include CBS, MTV, and Showtime.

Regulators in the United States and Europe are expected to scrutinize any consolidation closely, given concerns about reduced consumer choice in a rapidly evolving streaming market.

Industry response and next steps

The week after Netflix revealed its agreement, Paramount Skydance submitted a new offer for the entire Warner Bros portfolio, signaling that the bidding war may continue. Analysts predict a lengthy review process with potential adjustments from both sides.

Expert perspective

Expert comment: Mike Proulx of Forrester notes the Warner Bros dispute could run for months, with the outcome still uncertain. He emphasizes how the struggle reflects streaming platforms’ growing influence in the industry.

Short summary

Warner Bros Discovery’s board has endorsed Netflix’s deal over Paramount Skydance’s offer, citing stronger funding and long-term value. Netflix would take the film studio and HBO while keeping TV networks in a separate company, whereas Paramount aims for full integration of Warner Bros with its own networks. The deal faces regulatory review, and the ultimate outcome remains unresolved as bidders press their cases.

Key takeaway: The Warner Bros dispute illustrates the rising power of streaming platforms in Hollywood, with regulators watching carefully as deals reshape media ownership. Source: BBC News

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