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- Warner Bros. Discovery is reportedly expected to announce that it is standing with Netflix’s bid next week for now.
- This could push Paramount to take an offer directly to shareholders, sue, or make a larger counterbid than it already did.
- This expected bidding war between Netflix and Paramount could last for up to half a year if things escalate.
The media was taken aback by Netflix’s massive $82.7 billion deal for Warner Bros. Discovery and HBO Max. However, Paramount was quite unhappy and made a staggering $108 billion counterbid in return for WBD that outbids Netflix.
New developments now reveal that WBD currently wants to stand with Netflix’s bid for now despite the huge difference in dollar amount.
WB reportedly plans to announce its decision next week, and it may ignite a gargantuan Hollywood-level bid battle between Paramount and Netflix.
Why it matters: Warner Bros. Discovery’s choice to move with Netflix’s bid could have devastating consequences for Paramount’s future, which could compel it to start a massive bidding war or perform a hostile takeover of WBD, among other options.
Credible insider Lucas Shaw of Bloomberg says Warner Bros. Discovery plans to consider the $82.7 billion deal from Netflix, which could trigger Paramount to either go directly to shareholders with an enticing offer, sue Netflix, or offer much more in another counterbid.
Netflix offered $27.75 per share, with each share going for $23.25 in cash and the other $4.50 in Netflix stock. Meanwhile, Paramount proposed $30 per share, all cash, for Warner Bros.
WB may consider Netflix’s deal due to its stock offering instead of Paramount’s cash-only deal. Unlike Netflix, Paramount’s bid also includes buyout of WBD’s film and TV studios, the Max streaming service, and linear networks, which could also push WB towards Netflix.
People involved in the process argue the expected bidding war will last up to half a year before WBD becomes a part of Netflix or Paramount. It’s also worth noting that WB shareholders will massively benefit from the bidding war regardless of the winner.
On a side note, Netflix co-CEO Gregory Peters already clarified in an investors call that it only sees WB’s gaming portfolio as a minor part of the deal. Warner Bros.’ gaming franchises did not influence Netflix’s decision to acquire WBD, so their fate remains unknown.
Do you think Warner Bros. Discovery will accept the Netflix bid? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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