Summary
Warner Bros Discovery is reviewing a new buyout offer from Paramount but still supports an earlier proposal from Netflix. Paramount made a $77.9 billion offer, while Netflix wants to acquire Warner’s studio and streaming business for $72 billion. The decision on these proposals involves potential regulatory reviews due to concerns about industry consolidation.
Key Facts
- Warner Bros Discovery received a buyout offer from Paramount Skydance but still recommends Netflix’s offer to its shareholders.
- Paramount’s proposal values Warner at $77.9 billion and includes networks like CNN and Discovery.
- Netflix’s proposal is to purchase only Warner’s studio and streaming business for $72 billion.
- Warner’s board prefers the Netflix deal, with a shareholder vote set for March 20.
- The decision involves antitrust concerns because the deals could further concentrate power in the entertainment industry.
- The U.S. Department of Justice is reviewing the proposals, and other countries are expected to evaluate them too.
- Paramount argues that Netflix’s larger market presence could dominate if it acquires Warner.
- Both Paramount and Netflix claim their proposals benefit consumers and the industry.
