By Emmie Meeks
Opinion Editor
The bidding war between Netflix and Paramount Skydance over Warner Bros. Discovery seems to be coming to a head as Warner Bros. again rejected an offer from Paramount and chose to keep a competing offer from Netflix. The proposed merger has faced intense scrutiny from Hollywood as creators and workers in the industry worry about decline in theater-going and future influence of filmmakers.
The future of Warner Bros. has been under stress since Paramount Skydance first proposed a bid to purchase the company in September, kicking off a months-long battle with multiple other companies including Netflix and Comcast.
Paramount’s acquisition offer, backed by President Donald Trump and his allies, threatens to further censor media, both news and entertainment. If Paramount were to acquire the company, and networks like CNN, Americans risk losing additional access to media that does not cater directly to Trump’s views. Also, given his personal relationship with Paramount CEO David Ellison and his father, the founder of Oracle, Larry Ellison, there would be little to stop Trump from dictating the entertainment media created by and offered on the platforms.
According to USA Today, Paramount submitted an unsolicited offer to Warner Bros. prompting the formal sale process. However, they soon met defeat when an announcement was made in early December that Netflix had won the acquisition bid.
Concerns arose from Warner Bros. executives regarding the risk-to-reward ratio of moving forward with each company.
“Paramount’s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed,” Warner Bros. Discovery Chair Samuel Di Piazza Jr. said in a statement. He added, the agreement with Netflix “will offer superior value at greater levels of certainty.”
Since Di Piazza’s statement, Paramount has pushed back against the Netflix deal and even sued Warner Bros. over the decision.
According to The New York Times, Paramount’s latest bid of $108 billion to acquire the company was passed over for Netflix’s $83 billion offer for a significant portion of the company. Paramount launched a lawsuit claiming to process unfairly favored Netflix. At the same time, Paramount has repeatedly attacked the Warner Bros. board and has proposed changes that would entirely disempower Warner Bros. Stakeholders.
The changes include special-interest board nominations and amendments to company bylaws.
“Paramount on Monday said it would nominate directors who would ‘exercise WBD’s right under the Netflix Agreement to engage on Paramount’s offer and enter into a transaction with Paramount.’ Paramount also said it would propose an amendment to the company’s bylaws that would require Warner Bros. Discovery to get shareholder approval before breaking off its cable unit as it had planned,” according to The New York Times.
This kind of sneaky behavior from Paramount’s Ellison is unsurprising considering he is a close friend of Trump.
Trump took to TruthSocial on Jan. 11 to share an article entitled “Stop the Netflix Cultural Takeover” in support of his friend Ellison, and pledged involvement in the deal.
According to the Associated Press, Paramount’s offer has now been backed by Oracle founder Larry Ellison, father of Paramount CEO David Ellison, with $40.4 billion in equity financing in an attempt to appease Warner Bros. debt concerns. However, regardless of the number on the table, Warner Bros. has continued to express concerns about Paramount’s intentions, including acquiring the entire company which encompasses networks like CNN and Discovery, beyond their studio and streaming platforms, like HBO. Netflix’s offer only includes their studio and streaming business.
Paramount’s acquisition offer, backed by Trump and his allies, threatens to further censor media, both news and entertainment. If Paramount were to acquire the company, and networks like CNN, Americans risk losing additional access to media that does not cater directly to Trump’s views. Also, given his personal relationship with the Ellisons, there would be little to stop Trump from dictating the entertainment media created by and offered on the platforms.
As so much entertainment and media have moved to online streaming platforms, now more than ever, owning physical media like books and DVDs has become an act of resistance. When CEOs have politicians in their back pockets, the consumer loses. Right now, CEOs are winning.
Photo Caption: The future of Warner Bros. ownership hangs in the balance of Netflix and Paramount bidding war.
Photo courtesy of Wikimedia Commons