Netflix’s acquisition of Warner Bros. isn’t set in stone yet. And, that means Skydance is preparing a “Hail Mary” hostile bid for the storied movie studio. The Washington Post reported on this effort to kick off the week. Here at The Mary Sue, we’ll explain this whole sordid affair for you, so you don’t have to go Googling or worse asking an AI model about where Warner Bros. is going to end up!
So, the big kerfuffle about Warner Bros. trying to sell its studio kicked up a few weeks ago. In true late capitalism fashion, CEO David Zaslav said that the company was not for sale, and then a few weeks later most trades in the media reported that they were exploring offers. Three realistic contenders emerged in Skydance (Paramount), Comcast (Universal), and Netflix (the one that shows movies at home.)
Netflix renders the best offer
Last week saw all of these major media corporations jockeying for position. For much of that, it felt like the sale could go any way. By the end of the week, Netflix pulled away with posturing of a full cash offer. On Friday, Netflix announced that it had basically sealed the deal on social media and in press releases.
Then, some reports emerged from the New York Post and other corners that Skydance was prepared to launch a hostile bid for Warner Bros Discovery. The postpice argued that the Paramount owner felt like Netflix was shown preferential treatment because of the friendship between Netflix CEO Ted Sarandos and WBD CEO David Zaslav.
Skydance’s big Warner Bros. counterattack
Savvy spectators expected this kind of crying to the refs from Skydance considering their new ownership. Active CEO David Ellison has some lofty goals for his shiny new studio. (His father, David Ellison is a co-founder of Oracle and has…other interests that may motivate this kind of acquisition, just like the one he spearheaded for Paramount. Credit to Defector’s Patrick Redford for an accurate read on the media landscape.) Still, they think they have a case and are arguing it in the press.
“We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process,” Skydance’s CEO argues.
Ellison continues, “We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares.”
Netflix is probably going to end up with Warner Bros.
All of this likely amounts to hot air. Skydance is effectively hoping that their offer is enough to pry away a few key defections among the Warner Bros. Discovery shareholders. That could work, but history proves this strategy is scattershot at best. You would still need to amass a majority. There’s also the involvement of the US government. As the president addressed the issue during a press conference.
“They have a very big market share,” Trump said of Netflix. “When they have Warner Bros., that share goes up a lot. So, I don’t know. That’s going to be for some economists to tell and also — and I’ll be involved in that decision too. But they have a very big market share.”
Because of the timeline we live in, that’s almost assuredly true. However, deals this far down the tracks usually go the distance. Maybe, the general uncertainty of the present is what Sky Dance is banking on now.
(Photo Credit: Netflix, Warner Bros.)
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