A high-stakes bidding war for the home of Batman and Game of Thrones has taken a new turn, with Netflix planning an all-cash offer to cement its $83 billion takeover of Warner Bros Discovery’s entertainment assets. The streaming giant is moving to block a hostile attempt by Paramount Skydance, which is trying to wrestle the deal away with a significantly larger, albeit debt-heavy, financial package.
Netflix’s revised strategy targets the ownership of WBD’s legendary film studios and its streaming platform, Max. By offering cash, Netflix aims to shorten the timeline for the acquisition, which observers initially thought would take months to finalize. This urgency is driven by Paramount’s aggressive tactics, including a proxy fight to replace WBD board members.
The rival bid from Paramount is valued at $108.4 billion and includes a $40 billion guarantee from Larry Ellison. However, WBD executives have labeled the bid “inadequate,” pointing to the risks associated with the debt financing Paramount would need to utilize. WBD has preferred the stability of the Netflix deal since agreeing to terms in December.
However, the proposed union of Netflix and Warner Bros is not being welcomed by everyone. The deal faces significant backlash from US lawmakers and entertainment unions, who worry about the creation of a media behemoth controlling half the streaming sector. Under the deal, WBD’s news and cable assets, such as CNN and Cartoon Network, would be left behind in a separate entity.
Investors appear encouraged by Netflix’s aggressive push to finalize the agreement. Stocks for both media companies rose following the report, reflecting market confidence in an all-cash resolution. The outcome of this battle will determine the future custodian of some of the world’s most beloved pop culture franchises.