Warner Bros Discovery backs Netflix in $108B bid showdown

Warner Bros. Discovery has signaled a clear preference in a high-stakes bidding battle for its film and streaming assets. The company urged shareholders to reject Paramount Skydance's roughly $108.4 billion proposal and move forward with Netflix's deal, citing stronger financing and long-term value.

Paramount Skydance had argued its bid was superior to a prior agreement Warner Bros struck with Netflix, which valued the deal at about $72 billion.

In a unanimous decision, Warner Bros Discovery's board recommended against the Paramount approach and said the Netflix deal serves shareholders best.

The studio group opened the sale process in October after receiving multiple expressions of interest, including from Paramount Skydance.

On December 5, Warner Bros Discovery publicly announced it had agreed to sell its film and streaming units to Netflix.

In a detailed filing to investors, Warner Bros Discovery's board said the Paramount bid carried significant risks and rejected speculation about involvement from the Ellison family, a billionaire clan with political connections.

Paramount's bid is reportedly backed by the Ellison family, whose ties to U.S. politics have drawn attention in previous years.

Warner Bros Discovery argued Netflix's offer is well financed and offers stronger long-term value for stockholders, while Paramount's bid could face regulatory hurdles and higher risk exposure.

Netflix welcomed the board's recommendation. Ted Sarandos, Netflix's co-chief executive, described the Netflix deal as superior and in the best interests of investors.

Netflix reiterated that its bid provides clearer funding and fewer regulatory risks compared with Paramount's approach.

Paramount could still return with an improved offer, keeping the race alive for now.

Deal details: what each side would mean

Netflix would acquire Warner's film studio and the HBO Max streaming service, giving Netflix access to a vast library of films and series for subscribers. However, the Netflix deal would not absorb Warner's traditional pay‑TV networks; those networks would likely be placed into a separate company before closing.

Paramount's plan would purchase Warner Bros in full, including networks such as CBS, MTV and Showtime, potentially raising concerns about reduced consumer choice and competition.

Antitrust regulators in the United States and Europe are expected to scrutinize whichever deal advances, given the scale of consolidation in entertainment.

Industry observers say the outcome could reshape the streaming landscape and the way content libraries are monetized across platforms.

Following Netflix's public stance, Paramount Skydance launched a broader bid for Warner Bros as a whole, including its television networks, keeping the contest alive.

Analysts warn the process could stretch into months as regulators weigh the impact on competition and consumer options.

Forrester's Mike Proulx says the dispute highlights a broader shift in who holds leverage in media: the owners of vast content libraries and the platforms that distribute them. He cautions that the final result will depend on financing reliability and regulatory clearance as much as price.

Some writers' unions have argued that increased consolidation could squeeze wages and reduce job opportunities, while also potentially limiting the diversity of content available to viewers.

In short, Warner Bros Discovery appears to favor Netflix's plan for the moment, focusing on stable financing and long-term value as the industry adapts to a rapidly evolving streaming era.

Key takeaway: The fight over Warner Bros. signals a major shift in Hollywood toward platform-driven control of content libraries, with regulators and markets watching closely. BBC News

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