The Digest:
Warner Bros. Discovery has opened a seven-day negotiating window, ending February 23, for Paramount Skydance to improve its $108 billion buyout offer, as the bidding war with Netflix intensifies. Paramount seeks to acquire all of Warner Bros. Discovery, including CNN and television properties, while Netflix's $83 billion bid excludes linear TV assets, leaving them under a newly created company called Discovery Global. Paramount's offer, backed by Larry Ellison's $43.6 billion equity commitment and $54 billion debt financing, includes a "ticking fee" of 25 cents per share per quarter if the deal isn't closed by December 2026, plus covering Warner's $2.8 billion termination fee with Netflix. Netflix has granted the waiver, calling it an opportunity to end Paramount's "antics," and scheduled a March 20 shareholder vote on its merger. Regulatory scrutiny looms over both deals.
Key Points:
- The bidding war will reshape Hollywood, determining control of iconic studios and networks like CNN.
- Paramount's all-in bid faces regulatory hurdles over foreign financing, while Netflix's offer raises monopoly concerns.
- Shareholders stand to gain, while the broader media landscape braces for consolidation.
- This signals the streaming wars entering a new phase of mega-mergers and content consolidation.
- The timing, with a one-week deadline, forces Paramount to deliver its best offer.
The seven-day window will determine whether Paramount can outbid Netflix for Warner Bros. Discovery, with regulatory scrutiny likely to play a decisive role.
Sources: AFP, Warner Bros. Discovery Statement, Netflix Statement
