The global media market is closely watching the unprecedented bidding war for Warner Bros Discovery. Netflix, with its enormous financial reserves, is competing with Paramount Skydance for control of the legendary studio and the HBO library. The situation has taken on a political character following intervention by Democratic senators and a written warning from James Cameron. The dispute is likely to be resolved during the March shareholder vote, which will determine the future of theatrical and streaming distribution worldwide.

Antitrust Approval for Paramount

The U.S. Department of Justice has issued preliminary approval for Paramount Skydance, enabling it to continue its efforts to acquire Warner Bros Discovery.

James Cameron's Warning

Famous director James Cameron sent a letter to the U.S. Senate, claiming that the studio's acquisition by Netflix would destroy movie theaters.

Netflix's Financial Advantage

Netflix has large cash reserves and can raise its offer to 83 billion dollars to outbid its competitor.

The competition to acquire Warner Bros Discovery (WBD) is entering a critical phase, dividing Hollywood into supporters of traditional cinema and digital giants. The main contenders are Netflix and Paramount Skydance, led by David Ellison. Although Netflix initially seemed close to finalizing the deal, Paramount is not giving up, having received preliminary approval from the U.S. Department of Justice's antitrust review. This strategic victory for Ellison increases pressure on the WBD board, which, despite a general meeting scheduled for March 20, has given Paramount seven days to submit a final, competitive offer. Warner Bros. is one of the oldest and most important film studios in history, founded in 1923 by brothers from Polish lands, which has shaped global mass culture for a century.Legendary director James Cameron has joined the discussion, stating in a letter to Senator Mike Lee that a potential purchase of the studio by Netflix would be the "Titanic of the film industry." Cameron fears that the dominance of a streaming platform will lead to the mass closure of movie theaters and a drastic reduction in the number of films produced. In response, Ted Sarandos, co-CEO of Netflix, assures that the acquisition will use Warner's infrastructure to increase the presence of films in theaters, which is intended to calm industry sentiment. Meanwhile, Democrats in the Senate are demanding explanations from Paramount regarding alleged consultations with the Donald Trump administration, giving the merger a purely political dimension. „The planned sale of Warner Brothers Discovery to Netflix would be catastrophic for the film business.” — James Cameron83 billion USD — could be the value of Netflix's new offer for WarnerThe financial situation of both bidders is diametrically different. Netflix has a cash surplus allowing it to quickly raise the bid, while Paramount would have to rely on risky financing. Warner's own employees, initially skeptical, are now leaning towards Netflix's offer, seeing greater operational stability in it. Simultaneously, new players are emerging in the live streaming segment – Apple TV has partnered with the IMAX network, showing that the battle for viewers is moving to ever new technological and organizational levels. Netflix: 83, Paramount Skydance: 70

Mentioned People

  • James Cameron — Film director who opposes the sale of Warner Bros to the Netflix platform.
  • Ted Sarandos — Co-CEO of Netflix, promoting the vision of a merger with a film studio.
  • David Ellison — CEO of Paramount Skydance, seeking control of WBD.