Netflix, Comcast, Paramount bid for Warner Bros. Discovery
What's the story
Netflix, Comcast, and Paramount Skydance have all submitted bids for Warner Bros. Discovery Inc. The submissions meet the November 20 deadline set by the board of Warner Bros. Discovery, which owns HBO and CNN, among other assets. The companies are interested in different aspects of the business with Comcast and Netflix mainly eyeing its film and TV library. Paramount is open to acquiring the entire company including its cable channels such as CNN, TNT, and Cartoon Network.
Strategic shift
Netflix's potential shift in distribution strategy
Netflix has told Warner Bros. management that it is ready to change its long-standing position against theatrical releases if it acquires the company. This comes as Warner Bros. Discovery considers strategic options after receiving interest from various suitors for all or part of its business. A sale could lead to more upheaval in the short term for a company that has experienced significant ownership changes in recent years.
Market performance
Warner Bros. Discovery's struggles and market value
Warner Bros. Discovery has struggled under its current leadership as consumers and advertisers move from traditional TV to streaming services. However, the recent takeover speculation has nearly tripled its shares in the last two months. The company now has a market value of $57 billion with around $33.5 billion in debt. Paramount's David Ellison is leading the bidding race with three offers for Warner Bros., running up to $23.5 per share, all of which have been rejected so far.
Merger possibilities
Comcast and Netflix's potential mergers
Comcast could potentially merge its NBC broadcast network, Universal film studio, and Peacock streaming service with Warner Bros.' film and streaming assets. Meanwhile, Netflix is interested in adding lucrative Warner franchises such as Batman and Harry Potter to its portfolio. Despite carrying $99 billion in debt with shares down 29% this year, Comcast is still a major player in the bidding process for Warner Bros. Discovery Inc.
Future prospects
Warner Bros. Discovery's future plans
Warner Bros. Discovery may not finalize a deal with any of the bidders and could go ahead with its plan to separate its struggling cable networks from other businesses next year. This would allow CEO David Zaslav to continue running the studio and streaming units until another bidder comes along. The board is expected to make a final decision by Christmas, marking an important milestone in this high-stakes bidding process.