- Warner Bros. Discovery is reportedly expected to announce that it is standing with Netflix’s bid next week for now.
- Despite Paramount’s significantly higher offer, WBD currently favors Netflix’s lower bid.
- This expected bidding war between Netflix and Paramount could last up to half a year if it escalates.
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 for WBD, outbidding Netflix.
New developments reveal that WBD is currently standing with Netflix’s bid, despite the huge dollar difference.
WB reportedly plans to announce its decision next week, which could ignite a gargantuan Hollywood-level bidding war between Paramount and Netflix.
Why it matters: Warner Bros. Discovery’s decision to move with Netflix’s bid could have devastating consequences for Paramount’s future, prompting it to start a massive bidding war or mount a hostile takeover of WBD, among other options.
Credible insider Lucas Shaw of Bloomberg says Warner Bros. Discovery is considering Netflix’s $82.7 billion deal, which could prompt Paramount to make a much higher bid again.
Netflix offered $27.75 per share, with each share receiving $23.25 in cash and $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.
Thank you! Please share your positive feedback. 🔋
How could we improve this post? Please Help us. 😔
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.
Join Our Community
