When CEO David Zaslav decided to split the recently merged Warner Bros. Discovery into two separate companies and sell them, it seemed like every other entertainment conglomerate wanted to purchase the Warner Bros. half, which covers the company’s movie and TV studios. In the end, Netflix appeared to prevail. However, a new contender has entered the arena, and it’s interrupted the deal’s final talks by not just targeting the Warner Bros. half of the company, but the whole package.
According to The Hollywood Reporter, Paramount CEO David Ellison has made a hostile takeover offer for both parts of Warner Bros. Discovery. Warner Bros. includes HBO and HBO Max, while the Discovery section covers more broadcast-centric channels, like the Food Network.
The deal is valued at $108.4 billion, compared to Netflix’s $87 billion offer. Paramount is campaigning for this in public, too; the company has launched a website, strongerhollywood.com, advocating for its deal over Netflix’s.
Ellison isn’t in this himself, as Paramount’s all-cash offer is sourced from several companies. Most contentiously, it includes sovereign wealth funds from Saudi Arabia, Qatar, and the United Arab Emirates, as well as money from Affinity Partners, which is run by President Trump’s son-in-law, Jared Kushner.
The next step is convincing shareholders that this is a better deal than what Netflix has on the table, hence the strong public campaign. There are no promises that this Hail Mary will actually work; the Netflix deal appears close to finished, and Paramount’s recent retooling following its merger with Skydance may cause concern among investors.
For viewers, there may be one big benefit to this offer. Netflix prioritizes streaming releases over exclusive theatrical windows, which disincentivizes people from going to theaters and seeing movies as they were intended to be seen. Paramount offers longer theatrical windows for its releases, so fewer worthy movies may end up banished straight into the depths of scrolling hell.
Warner Bros. Discovery has only existed in its current state for a few years, but the future of the entertainment industry may rely on where it goes next. Whoever is able to bag Warner Bros. — and the HBO brands that come with it — is sure to become the new leader in the streaming landscape. These days, that’s apparently worth nine figures.
