Paramount’s hostile bid for Warner Bros. could be the first real threat to Netflix’s streaming empire
Depending on who you ask, the Warner Bros. acquisition Discovery by Netflix is either the death of Hollywood (if you’re a writer, director, or anyone actually working in Hollywood) or a golden opportunity (if you’re a Netflix shareholder). But the streaming giant’s plans could be torpedoed by a surprise move from a rival studio. By The Hollywood Reporter, Paramount launches hostile bid for Warner Bros. stock options.
Supreme Leader David Ellison did not mince his words when discussing the reasons for the hostile offer, claiming Netflix “made a lower offer” for Warner Bros. “WBD shareholders deserve the opportunity to consider our superior, all-cash offer for their shares in the entire company,” he said. “Our public offering, which is subject to the same terms that we have proposed to the Warner Bros. Discovery board privately, provides superior value and a safer, faster path to completion.” It turns out that Paramount might have a few cards up its sleeve that could tip the scales in its favor and radically reshape the future of Netflix – and Hollywood – in the process.
If Paramount wins Warner Bros., it will be a major blow to Netflix’s cultural impact
Since its creation, Netflix disrupted Hollywood traditions. He launched the “Streaming Wars,” sending every studio into a frenzy to produce their own streaming service and creating a bubble that burst with a mighty crash. Its CEO, Ted Sarandos, has a strange aversion to theatrical releases of his films, even though those films command the kind of astronomical price tag you’d expect from a blockbuster release. But he has also produced projects that constitute true monuments of pop culture, notably Stranger Things, House of Cards, And BoJack Rider. If Warner Bros. fell under the Netflix umbrella, it would arguably become one of the most important forces in the industry.
The Paramount deal calls that into question and, in doing so, raises the idea of an even more powerful force. While Hollywood was once defined by a collection of studios, mega-mergers increase the power of certain studios. Whether it’s Disney buying 20th Century Fox or Amazon absorbing MGM, deep-pocketed executives want certain studios to be able to exploit their intellectual property. If Paramount gets Warner Bros., it will be one of the biggest studios in the world and will eclipse Netflix. Paramount even dealt a blow to Netflix by signing a deal with Stranger Things creators Ross and Matt Dufferdepriving the streamer of one of its greatest creative giants.
Paramount wants everything Warner Bros. – not just his films
Lost in all the hubbub around the Warner Bros./Netflix/Paramount brouhaha is the fact that Netflix would only acquire the Warner Bros. film library. only if its merger takes place. On the other hand, Paramount wants Warner Bros. in its entirety. This means its movie library And Television networks including TNT, CNN, HGTV, Food Network and Discovery. On top of that, Paramount could also acquire HBO and HBO Max, which would deal another blow to Netflix as it wouldn’t be the biggest streaming play in town.
While some studios might be hesitant to absorb a collection of TV channels at a time when linear television faces its biggest battle, Paramount is sending a major message: “We want WB, baggage and all.” The fact that he is ready to absorb a potential mountain of debt shows how serious the Ellisons are in terms of acquiring Warner Bros. They are also very business savvy: to promote upcoming films, movies and streaming services, commercial time is often spent on interconnected networks. This means that if the deal goes through and Paramount promotes a new film, it will be able to do so on Warner Bros. channels. as well as his own.
Compared to Netflix, Paramount’s approach stands in stark contrast, where titles can be removed from the streamer’s library on a whim, or shows can be canceled if they don’t reach a magic number in the algorithm. Netflix, despite all its success, can be unpredictable; With its approach, Paramount is attempting to develop a long-term plan for media domination. Long term is a sign of growth, and in the often cutthroat world of Hollywood, growth is king.
After interest from Paramount, Netflix seeks to buy Warner Bros. in a move that would change the industry forever
The report signals a shift in Skydance/Paramount’s struggle to acquire the conglomerate.
There is a major obstacle in Paramount’s pursuit of Warner Bros.
Right now, many people may be wondering why Warner Bros. decided to accept Netflix’s offer and go through Paramount. The answer lies in a potential feud between David Ellison and Warner Bros. Meet the CEO David Zaslav, and it started, believe it or not, South Park. Paramount and Warner Bros. have reportedly struck a handshake deal to share streaming rights to the raunchy animated series for ten years. Ellison apparently reneged on the deal, which angered Zaslav enough that he ignored Paramount’s first offer when Warner’s bidding wars began. COO of Paramount Andy Gordon even said he was left out of the conversation, saying, “During the entire process, we never received a single annotation of the documents.” It’s hard to see Zaslav changing his mind, even if Ellison offers more money.
One might also think that a Paramount-Warner Bros. deal. would be a done deal, considering Ellison has the president’s ear Donald Trump. That would be wrong, because Trump blasted Ellison’s management of Paramount in a fiery speech today after 60 minutes conducted an interview with Marjorie Taylor Greene. We are far from the fact that he apparently convinced the studio to finally give the green light. Rush hour 4and that could cause problems as FCC chairman Brendan Carr proved more than willing to intervene on Trump’s behalf – especially after Jimmy Kimmelfrom the brief suspension on air.
It’s clear that both Paramount and Netflix have a lot to gain or lose, depending on how the bidding war for Warner Bros. develops. Paramount’s hostile offer proves that it won’t happen without a fightand that he is willing to use every advantage he has to win. Time will tell whether these advantages will work in its favor, but one thing is certain: no matter who wins this war, Hollywood will never be the same.
