Warner Bros. is advising shareholders to oppose a buyout offer from Paramount Skydance, asserting that a competing bid from Netflix would bring greater benefits to consumers. In a statement on Wednesday, Warner Bros. expressed confidence that a collaboration between Netflix and themselves would enhance consumer choices, boost the reach of the creative community, and drive long-term growth.
The company emphasized that the rationale behind accepting Netflix’s offer stemmed from the belief that the merger would leverage Netflix’s vast collection of iconic franchises and studio capabilities to complement Warner Bros.’ existing operations rather than duplicate them. Paramount recently intensified its bid, urging shareholders to dismiss the proposed deal with Netflix, which has the backing of Warner Bros.’ board.
While Paramount has tabled an offer of $30 US per Warner share compared to Netflix’s $27.75 US bid, the option from Paramount remains open for consideration. Warner Bros. shareholders retain the prerogative to tender their shares in favor of Paramount’s bid, which encompasses the acquisition of the entire company, including CNN and Discovery.
Unlike Paramount’s proposal, Netflix’s bid excludes the purchase of Warner Bros.’ cable assets. A potential acquisition by Netflix would only materialize post the completion of Warner’s previously announced separation of its cable business. Paramount reiterated its bid and urged Warner Bros. Discovery shareholders to advocate for Paramount’s “superior offer.”
The regulatory landscape looms as a significant hurdle for both takeover bids. Should a change in ownership at Warner materialize, it would significantly reshape the entertainment and media industry, impacting movie production, streaming platforms, and possibly news dissemination, particularly in Paramount’s case.
Critics of Netflix’s bid fear that merging with Warner’s HBO Max could grant Netflix an overwhelming market dominance, especially given the relatively smaller scale of Paramount’s streaming service, Paramount+. Warner Bros. maintained that the collaboration would benefit the entertainment industry at large.
Both Netflix and Paramount’s bids have raised concerns about the future of film and TV production. Paramount’s interest in Warner’s cable networks and news holdings could consolidate media further, potentially raising questions about editorial control and content creation. U.S. President Donald Trump’s involvement in the deal underscores the intersection of politics and regulatory approval.