The global media market is watching with bated breath the bidding war for Warner Bros Discovery. Netflix, the initial favorite, faces resistance from Paramount Skydance and criticism from legendary filmmakers, including James Cameron. The company is considering raising its $83 billion offer to seal the deal ahead of a shareholder vote scheduled for Friday. Meanwhile, U.S. senators are entering the fray, investigating the political connections of the bidders and the potential impact of the merger on the film market.

The Great Bidding War for Warner

Netflix is ready to spend over $83 billion to acquire Warner Bros Discovery, but it must contend with a counteroffer from Paramount.

Filmmakers' Rebellion Led by Cameron

James Cameron officially appealed to the U.S. Senate to block the transaction, predicting the collapse of the traditional cinema model if Netflix wins.

Seven-Day Ultimatum for Negotiations

The WBD board set an additional week for talks with Paramount Skydance, halting the immediate acceptance of the streaming leader's offer.

The battle for control over Warner Bros Discovery (WBD) has entered a critical phase, becoming one of the most complex acquisition processes in Hollywood history. Netflix, aiming to strengthen its leading position, proposed a record $83 billion. The WBD board, despite earlier readiness to close the deal, decided to extend the deadline by seven days, opening the door for Paramount Skydance. This strategy caused nervousness in the stock market, resulting in Netflix's share price falling near its annual low of $78. Investors fear that the need to outbid Paramount's offer could burden the streaming giant's balance sheet. Since its founding in 1923 by Polish-Jewish immigrants, Warner Bros. has been a pillar of American culture, undergoing numerous transformations, including the high-profile merger with Discovery in 2022.The situation is complicated by opposition from influential industry figures. James Cameron, director of hits like „Avatar” and „Titanic”, sent a letter to the U.S. Senate, warning of „catastrophic” consequences of streaming platforms dominating the traditional cinema model. „The planned sale of Warner Bros Discovery to Netflix will be catastrophic for the cinema business.” — James Cameron In response, Netflix co-CEO Ted Sarandos declared that the merger would paradoxically strengthen cinemas by leveraging Warner's distribution network and maintaining 45-day exclusive windows for new releases. The economic thread intertwines with the political, as Democratic Party senators demanded David Ellison secure documentation regarding contacts with the Donald Trump administration. There are suspicions of attempts to politically influence antitrust bodies. Meanwhile, within WBD, employee sentiment seems to be shifting in favor of Netflix, contrasting with concerns about Paramount's financial stability, as it would need to take on risky loans to finance the transaction. Offers and Market Values: Netflix offer value: 83, WBD market valuation: 7083 billion — dollars could be the final purchase price for Warner BrosKey Bidding Stages: February 10 — Cameron's Letter; February 17 — Paramount's Move; February 19 — Sarandos' Declaration; February 20 — Vote

Mentioned People

  • Ted Sarandos — Co-CEO of Netflix, defending the transaction and announcing the maintenance of theatrical premieres.
  • James Cameron — Renowned director opposing the acquisition of WBD by Netflix in a letter to Senator Mike Lee.
  • David Ellison — CEO of Paramount Skydance, Netflix's competitor in the battle for Warner's assets.