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Netflix announced a deal to acquire Warner Bros. on Friday, but Paramount isn't ready to give up.
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After Netflix announced that it was acquiring Warner Bros. Discovery last week, observers immediatley wondered when or if the deal could obtain regulatory approval. Now, President Trump has made comments indicating that said approval is likely to take awhile if it happens at all, Bloomberg reported.
"Well, that's got to go through a process, and we'll see what happens," Trump told reporters in a recent Q&A scrum. "But it is a big market share. It could be a problem." The President added that he will be personally involved in the approval process.
As we pointed out last week, Netflix and HBO Max combined would account for around 33 percent of the US streaming video market, ahead of Prime Video's 21 percent share and likely enough to attract the antitrust division of the US Justice Department. For its part, Netflix has said that it will "maintain Warner Bros. current businesses," which includes HBO Max and HBO, theatrical releases for films as well as movie and TV studio operations.
Headwinds were likely with any deal, so in November Netflix's co-CEO Ted Sarandos reportedly met with Trump at the White House, arguing that the acquisition wouldn't create a monopoly. Trump said that Warner Bros. Discovery should sell to the highest bidder, and Sarandos left the meeting feeli
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Paramount has been none too pleased about Netflix striking an $82.7 billion deal to buy much of Warner Bros. Discovery (WBD). Now, Paramount is making a hostile takeover bid for WBD. It's making its pitch directly to WBD shareholders with an all-cash offer of $30 per share that expires on January 8.
Late last week, the WBD board unanimously accepted Netflix's offer of $27.75 per share. That breaks down to $23.25 per share in cash and another $4.50 per share in Netflix stock. Netflix's overall bid is valued at $82.7 billion, while Paramount's totals $108.4 billion.
There's a key difference when it comes to the Paramount offer, as it's for all of WBD. The latter is scheduled to split into two companies next year. Netflix only wants the Streaming and Studios side of WBD's business, which includes HBO Max and the Warner Bros. film, TV and game studios.
Paramount is after the whole shebang, including WBD's cable channels (Global Networks). "WBD's Board of Directors recommendation of the Netflix transaction over Paramount's offer is based on an illusory prospective valuation of Global Networks that is unsupported by the business fundamentals and encumbered by high levels of financial leverage assigned to the entity," Paramount said
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