Hollywood is once again fighting over who gets to own Batman, Bugs Bunny and every second show Sarah Jessica Parker has ever sipped a cocktail in — and this time Paramount has chucked in a fresh bid, insisting they should be the ones running the Warner Bros circus.
Paramount Skydance, bankrolled by the Ellison billionaire clan, has gone straight to Warner Bros shareholders waving $30 per share, basically shouting: “Forget Netflix – pick us, we’re pure loaded.” The offer includes everything: HBO, DC Studios, Looney Tunes, the lot.
They’re claiming their plan is a “superior alternative”, mostly because it comes with more cash upfront and, in their words, a better chance of getting past global regulators who currently look like they need paracetamol.
President Donald Trump hasn’t helped the chaos, muttering that Netflix buying Warner Bros “could be a problem” — although he changes his mind every few hours depending on who annoyed him on TV that day.
This latest twist follows months of bidding theatre. Paramount looked like the early favourite thanks to the Ellisons’ cosy relationship with Trump, but Warner Bros surprised everyone on Friday by declaring Netflix the winner with an $83bn deal (debt included). CNN and a pile of other networks would be spun off into a separate company first.
Paramount, refusing to be outdone, has now returned with a $108.4bn offer — meaning they’re essentially shouting across the playground: “Aye Netflix, double it.”
To spice things up further, Trump’s son-in-law Jared Kushner is helping finance the Paramount plan, because obviously this story didn’t have enough characters already.
Both takeover attempts will face a regulatory kicking in the US and Europe. Analysts say Netflix’s plan risks giving one streamer way too much muscle. Paramount’s plan, meanwhile, could cause issues for advertisers, sports broadcasters and children’s TV because combining CBS, CNN and the Warner channels creates a mega-network with a frankly ridiculous amount of control.
Paramount boss David Ellison told CNBC he’s had “great conversations” with Trump — while carefully refusing to say what Trump actually thinks. Meanwhile Trump praised Netflix one day, then slagged off Paramount the next for airing a 60 Minutes interview he didn’t like.
So, basically: nobody knows what’s happening inside his mind. Probably not even him.
Netflix says the takeover will “supercharge” its business, boasting more than 300 million subscribers worldwide. Analysts, though, keep whispering that a Paramount-Warner Bros combo actually makes the most sense, especially after Ellison bought out Paramount earlier this year and folded it into his Skydance empire.
Ellison insists Netflix buying Warner Bros would be “a horrible deal for Hollywood”, giving one studio too much say over actors and creators. He’s also claiming Warner Bros spinning off its TV networks is doomed to fail.
Markets didn’t seem bothered. Warner Bros shares jumped over 3% on Monday. Paramount shares also rose. Netflix shares dipped — probably because both sides are now flinging billions of dollars around like confetti at a Hollywood divorce.
What Netflix wants to buy:
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Warner Bros Pictures
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Warner Bros Television & Games
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DC Studios
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HBO & HBO Max
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TNT Sports International
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New Line Cinema
What a full Paramount takeover would also include:
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Discovery
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CNN
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Eurosport
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TNT & TNT Sports US
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HGTV, TLC, Cartoon Network, Food Network
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Discovery+, DMAX, Adult Swim
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18 additional channels
