Paramount, Comcast and Netflix race to bid for Warner Bros
Paramount Skydance Corp., Comcast Corp., and Netflix Inc. are all considering offers for Warner Bros. Discovery Inc., with each endeavoring to differentiate their proposals and steer clear of overpaying for the assets. Comcast and Netflix are particularly focused on the film and TV library, encompassing a wide range of content from The Sopranos to Bugs Bunny. Paramount is prepared to acquire the entire company, encompassing cable channels like CNN, TNT, and the Cartoon Network. On Wednesday, reports shows that Netflix informed Warner Bros. management of its readiness to abandon its long-standing resistance to theatrical film releases, contingent upon its acquisition of the company. Warner Bros. announced last month that it would assess strategic options following interest from various suitors in acquiring all or part of the business. The initial round of bids is anticipated on Thursday.
A sale is bound to introduce additional turmoil, at least in the short term, for a company facing its fourth owner in seven years. In 2018, AT&T Inc. acquired Time Warner Inc. from its shareholders to expand its presence in film and television production. Four years later, WarnerMedia underwent a merger with Discovery Inc., resulting in the current iteration. As consumers and advertisers transition from traditional TV to streaming platforms, Warner Bros. has faced challenges under its existing leadership. However, amid the recent takeover speculation, the shares have nearly tripled over the past two months. The current market value stands at $57 billion, accompanied by approximately $33.5 billion in debt.
Paramount, newly under the leadership of technology heir David Ellison, initiated the entire process. Ellison has proposed three offers for Warner Bros., reaching as high as $23.50 a share, all of which have been declined. He’s anticipated to offer a higher bid, yet still below the $30-a-share valuation that certain analysts have assigned to the company and that Warner Bros. is reportedly seeking. Ellison views an acquisition as a chance to strengthen Paramount’s business. The Warner Bros. film and TV library will provide additional content for the Paramount+ streaming service. HBO Max is set to increase its streaming subscriber base, while the Warner cable channels will be integrated with Paramount’s MTV and additional networks. The 42-year-old film producer, an avid movie enthusiast, aims to elevate the joint production capacity of Paramount and Warner Bros. to 30 films annually. His father, Oracle Corp. Chairman Larry Ellison stands as one of the wealthiest individuals globally. He has already provided financial support for his son’s $8 billion acquisition of Paramount. The Ellisons have engaged in discussions with Apollo Global Management and the sovereign wealth funds of various Middle Eastern nations. On Tuesday, David Ellison was among other prominent business figures at a White House dinner honoring the Saudi Crown Prince.
Comcast may merge its NBC broadcast network, Universal film studio, and Peacock streaming service with Warner Bros.’ film and streaming assets. Netflix aims to incorporate profitable Warner franchises such as Batman and Harry Potter into its portfolio. Comcast carries a staggering $99 billion in debt, and its shares have plummeted by 28% this year. Netflix holds a total of $17 billion in borrowings. Its shares have risen by 23% in 2025, resulting in a stock market valuation of $466 billion. Netflix has never undertaken an acquisition of this magnitude, instead opting for organic growth. Warner Bros. might not finalize an agreement with any of the interested parties and could persist with its existing strategy to detach its struggling cable networks from the other operations in the coming year. This would enable Chief Executive Officer David Zaslav to maintain control over the studio and streaming divisions, at least until a new bidder emerges. The board is anticipated to reach a conclusive decision by Christmas.
