Netflix or Paramount: who will ultimately win Warner Bros?

The historic studio announces that it will give its final opinion in around ten days, but remains in favor of Netflix… which refuses to panic and promises that everything will be fine!

Last Friday, Warner Bros. Discovery announced a massive agreement with Netflix, relating to the purchase of the studio activities of Warner Bros., HBO and HBO Max, for 72 billion dollars (82.7 billion in enterprise value). Paramount responded yesterday by making a hostile counter-offer valued at $108 billion, supported by three Arab sovereign funds and Affinity Partners, the company of Jared Kushner, the son-in-law of the current President of the United States…

With his back against the wall, Warner was forced to react and confirms having received the offer, which he considers “unsolicited”, and announces that he “will examine it carefully.” with its financial and legal advisors, before issuing a recommendation within 10 working days. But for the moment, no change of course:

“The board is not changing its recommendation regarding the Netflix agreement.”

In the meantime, Warner invites its shareholders not to make any decision regarding the Paramount Skydance offer. Estimated deadline for response: Friday, December 19.

Netflix shows confidence

Until then, don’t panic on the red N side. A few hours after Paramount’s frontal attack, the co-CEOs of Netflix, Ted Sarandos and Greg Peters, displayed absolute serenity during a UBS conference. According to them, the deal announced on Friday has nothing to fear.

“Today’s move (by Paramount) was fully expected. We have an agreement. It is excellent for our shareholders, for consumers, and for jobs in the industry. We are extremely confident: we will conclude this agreement and see it through to the end.”

They promise to preserve jobs, to keep the studio functioning, and – crucial point in the face of discontent from the cinema world – to fully respect theatrical releases in the Warner Bros. manner.

Sarandos insists: Netflix buys Warner Bros. for its model, not to dismantle it.

“We did not buy this company to destroy its value. We are fully committed to releasing (Warner Bros.) films exactly as they are released today…”

The duo assures that Warner films will continue to be exploited as today: “Minecraft, Superman, Weapons, Sinners… All these films would have had the same run in theaters if the agreement had taken place two years ago.”

Donald Trump promises not to weigh in the balance

All eyes are now on the Oval Office. Will President Trump – whose son-in-law is directly involved – put pressure on the Netflix deal to collapse? He promises no, although Larry Ellison, the father, financed his campaign…

Questioned during a press briefing at the White House, the president assured that he did not support one or the other of the two offers – that of Paramount Skydance or that of Netflix.

“I don’t know enough to say. I know these companies very well, I know what they do. But I have to think. I have to look at what market share they have. You have to look at Netflix’s market share, Paramount’s market share. Frankly, neither of them (David Ellison and Ted Sarandos) are really a great friend of mine. I just want to do what’s right. It’s really, really important to do what’s right.”

Donald Trump therefore maintains his judgment, explaining that he will analyze market positions before taking any official position. The American regulatory authorities will, whatever happens, have their say.