Netflix in exclusive talks to buy HBO
6 days ago
- #Netflix
- #Warner Bros. Discovery
- #Streaming Wars
- Netflix has submitted the highest bid for Warner Bros. Discovery's studio and streaming assets at around $28 per share.
- Paramount also submitted a new bid closer to $27 per share, aiming to buy all of Warner Bros. Discovery, including CNN and other cable channels.
- The bidding war has intensified, with Netflix currently in the lead, prompting concerns from Paramount about the auction process favoring Netflix.
- Warner Bros. Discovery's stock plummeted post-2022 merger but saw rejuvenation earlier this year, partly due to Paramount's offers.
- Paramount's aggressive pursuit under CEO David Ellison is seen as audacious given its market cap is one-fourth of Warner Bros. Discovery's.
- The 'Trump card' refers to Paramount's perceived advantage in deal approval due to its relationship with President Trump and the White House.
- Any sale would face regulatory scrutiny not just in the U.S. but also in the UK, EU, and Latin American countries, with potential political implications.
- Sen. Mike Lee and others have raised antitrust concerns over Netflix's potential acquisition of Warner Bros. Discovery's streaming business.
- Analysts suggest that if Netflix acquires Warner Bros., it would become the undisputed global powerhouse in Hollywood, effectively ending the streaming wars.