Warner Bros Discovery is preparing to lobby its shareholders to oppose the $108.4 billion (£80.75 billion) takeover offer from Paramount Skydance. So expect this announcement to land as soon as Wednesday. Illustration by Matt Bors Last week, Warner Bros Discovery announced it had sold its film and streaming operations to Netflix. This change greatly expands the horizon of possible acquisitions.
In October, Warner Bros Discovery announced that it was itself on the block. Beyond this, the decision was an immediate draw for many interested buyers. So enter Paramount Skydance with a pretty amazing new proposal. They already plan to buy the whole company, including its giant television networks. What’s remarkable is not the Olympic credentials of this bid, but its scale. It happens to have an exceptional catalog of movies and television.
Warner Bros Discovery has a deep IP well, stocked with mega franchises such as Harry Potter and Friends. It includes the HBO Max subscription streaming service. This deal would provide Paramount Skydance with a robust and highly desired portfolio. This would significantly expand its current programming and make it much more competitive in the dynamic entertainment marketplace.
Only on December 5, Warner Bros Discovery actually completed its deal with Netflix. This was a defining turn for the company, as it condensed and refocused its business to respond to burgeoning competitive forces. The deal with Netflix highlights Warner Bros Discovery’s strategic shift towards digital content distribution, aligning itself with a major player in the streaming sector.
For its part, Warner Bros Discovery signaled that it is all-in on its ongoing partnership with Netflix. The soon-to-be-rejected Paramount Skydance gamble underscores their concern with keeping a lock on IP and big-picture creative enterprise. As shareholders gear up for their big decision, the entertainment industry might feel the impact of this probable rejection echoing for years to come.