Breaking: Netflix Is No Longer Pursuing Purchase of Warner Bros. — Paramount Takes The Lead In Bidding War
We certainly didn’t see this coming. In one of the biggest plot twists in Hollywood history, Netflix has bowed out of the race to acquire Warner Bros., which leaves Paramount Skydance at center stage, poised to take over one of the most storied of the major studios in entertainment.
Netflix’s victory seemed like a foregone conclusion up until the last few days, once Paramount raised its offer past the $30-per-share all-cash by only two dollars. The streaming giant had the upper hand with an $82.7 billion cash offer, but now that the WB Discovery board finds Paramount’s increased offer more appealing, Netflix is stepping away from the table, say TechCrunch.
CEOs Ted Sarandos and Greg Peters had four days to counter, but chose not to, citing the price for Warner as “no longer financially attractive.” The way things stand, Paramount is positioned to take control outright of Warner Bros. Pictures, HBO Max, CNN, DC, and a century of iconic films, TV, and IP.
Among them are Harry Potter and the thriving MonsterVerse. However, the good news on that front is that it will be a while before we see what impact this consolidation will have on the futures of the Wizarding World and Godzilla/Kong, at least in the West.
Nevertheless, Paramount is about to turn into a mega-studio with a virtually bottomless content library. They will change the game as far as competitive balance across streaming, global distribution, and theatrical releases, which is something – if they don’t save it with this acquisition – they have at least bought more time.
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The biggest concern with Netflix buying WB was the end of the theatrical model, despite promises of suitable release windows made by Sarandos. Netflix was an outsider to the system that became a big dog in the yard by sticking to streaming and licensing that bypasses the big screen. The old extant ways were never their priority.
However, more than placating moviegoers who prefer the multiplex and stale popcorn, Netflix may have spared itself the hassle of antitrust litigation. A Netflix-WBD merger would have triggered intense scrutiny that probably wouldn’t work in their favor when the family that owns Paramount-Skydance, the Ellisons, are cozy with the current President.
Paramount will face the same scrutiny, but might have an easier time when regulators answer to Donald Trump. If so, their streamer (Paramount+) will gain a boost that will raise them to a level of a major rival to the undisputed King, that is, Netflix, whether they fold Max into their main service or not.
