Netflix is in exclusive negotiations to acquire Warner Bros.’ film and television studios. Discovery, along with its investment assets. My neighbor HBO Max, in a transaction at $28 per share, according to this story, was a source close to the talks with Reuters.
It is possible that the two companies will announce an agreement in the next few days, assuming that the talks will flourish, according to a number of people familiar with the situation cited by Bloomberg.
Warner Bros. Discovery is spending months searching for a buyer for part or all of its business, and Netflix has been appointed lead manager by Paramount and Comcast, which are also vying for the assets of the company run by David Zaslav, given Warner’s huge and attractive catalog. Netflix had already made the higher offer, in addition to providing assurances that it would continue to allow Warner Bros. films to be released. The platform’s proposed acquisition is expected to reduce subscription costs for consumers by bundling Netflix and HBO Max.
A successful purchase would give Netflix control of a huge catalog, including the entire Warner Bros. or DC Comics archive, and the entire HBO portfolio. Although analysts said the union would not expand Netflix’s market share excessively, it would only strengthen its position vis-à-vis other competitors. The agreement may be difficult to approve, because it will combine two major programs My neighbor From the United States.
Netflix is prepared to offer up to $5,000 million (4,287 million euros) additionally if government regulators try to block the purchase by enforcing antitrust law, Bloomberg reported. CNBC had previously reported that Netflix had made an offer consisting of 85% cash for the assets it intends to acquire. Netflix and Warner Bros Discovery declined to comment on this information.
Before the sale closes, Warner Bros. Discovery, valued at more than $60,000 million (51,452 million euros), will complete the planned separation of cable channels such as CNN, TBS and TNT.
News of the potential agreement prompted a union of prominent figures in the film industry to urge the US Congress to intervene in the event of the success of Netflix’s offer, warning of an imminent economic and institutional crisis in Hollywood, according to what Variety magazine reported.
Maximum boredom
According to the Wall Street Journal, Warner Bros. Discovery will seek another final round of offers from interested parties, after Paramount Skydance, a company run by David Ellison, the son of Oracle co-founder Larry Ellison, accused Warner of running an unfair sales process that favored Netflix over other suitors. According to the information, Warner Bros. has received… Discovery enhanced offers from strong prospects – Paramount, Comcast and Netflix – at the beginning of this week, after asking them to increase initial offers submitted at the end of November.
In a letter to Warner Bros Discovery CEO David Zaslav, Paramount’s legal team expressed concerns about the “fairness and adequacy” of the bidding process, citing media reports suggesting that Warner Bros Discovery management favors Netflix’s proposal. Paramount Skydance has requested confirmation that Warner Bros. Discovery has formed a special independent committee of neutral board members to evaluate the proposals and oversee the sales process, according to the letter.
“We strongly urge you to grant authority to this special committee composed of advisors who do not have to rely in partial reliance on other persons whose interests may differ from those of shareholders,” Paramount’s legal team said in the letter.
Paramount tried to buy the entire company. In October, Warner Bros. Discovery’s board of directors rejected an approximately $60,000,000 offer from Paramount, and subsequently began a formal sale process.