Warner Bros. auction poised to recast Hollywood with Paramount, Comcast and Netflix vying for the prize

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Now, the real jockeying begins for the future of Warner Bros. Discovery.

Paramount, Comcast, and Netflix are all expected to make offers for parts or all of the media company by Thursday. These initial, non-binding bids move the potential sale of famous entertainment brands like HBO, CNN, and Warner Bros. closer to reality. Sources familiar with the process have confirmed this, but aren’t allowed to discuss the details publicly.

David Zaslav, CEO of Warner Bros. Discovery, and the company’s board have turned down three offers from David Ellison of Paramount, including a cash offer of $23.50 per share, because they considered the price too low. The arrival of new potential buyers on Thursday could increase Warner Bros. Discovery’s value to over $60 billion, as the company has been facing challenges.

Experts believe Paramount has a strong advantage in the bidding process because it’s supported by Larry Ellison, one of the world’s wealthiest individuals. However, winning isn’t guaranteed.

Julie Clark, a senior vice president at TransUnion, said Wednesday she wasn’t ready to predict a clear winner. She explained that all involved parties have significant potential benefits and risks.

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Comcast President Mike Cavanagh suggested the company is open to acquiring other businesses in its industry, but emphasized they’ll be very selective. He told analysts to expect them to explore potential deals, but only if they meet a high standard.

Warner Bros. Discovery’s board of directors aims to choose a partner by the end of the year. This decision will help them decide if they should move forward with their earlier plan to split the company into two separate businesses.

If Paramount succeeds in acquiring Warner Bros. Discovery, the company would stop its plan to split into two separate businesses. One would be a streaming and studio service called Warner Bros., and the other, Discovery Global, would include channels like CNN, HGTV, and TLC.

Comcast and Netflix are primarily interested in acquiring Warner Bros.’ studio facilities in Burbank and the HBO content library, sources say. If this happens, Warner Bros. would likely be split up to allow those specific deals to move forward.

Warner Bros., Paramount, and Universal Pictures are all long-standing Hollywood studios, each with a history stretching back a hundred years. The potential sale of Warner’s will significantly change the industry, and could lead to a merger between two of these iconic film companies.

A merger also would turbo-charge the shift to streaming.

However, this action would likely cause job losses in an industry already weakened by reduced production and thousands of layoffs over the past two years. Warner Bros. Discovery, in particular, has been struggling with a large debt resulting from the $43 billion merger of WarnerMedia and AT&T in 2022.

Kenneth Leon, a research director at CFRA, stated that the acquisition did not succeed.

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This decision follows recent talks where Paramount, controlled by Larry Ellison and his family, made an offer to purchase all of Warner Bros. Discovery.

Antitrust regulators are expected to pore over any deal.

President Trump has publicly indicated he supports Ellison. Ellison recently had dinner at the White House with other tech leaders like Tim Cook of Apple and Elon Musk of Tesla, where they honored Saudi Arabia’s Crown Prince Mohammed bin Salman.

So, I’m hearing that Bob Ellison and his firm, RedBird Capital, have been over in the Middle East, chatting with some really big investment groups – the kind of funds countries themselves have. Apparently, they’re trying to line up potential investors before Paramount even wins the bidding war for Warner Bros. Discovery. It sounds like they’re getting their ducks in a row just in case they pull off the deal!

NETFLIX

Netflix is the wild card.

According to Leon, acquiring a company of this size would be unusual for Netflix. He explained that Netflix has thrived for almost three decades by growing naturally and making small, strategic purchases, rather than large, multi-billion dollar acquisitions.

Still, Netflix has its eye on the Warner Bros. stable of successful franchises that include Superman and other DC Comics, “The Matrix,” “Game of Thrones,” Harry Potter and “The Big Bang Theory.”

Netflix has had some huge hits like “Squid Game,” “Bridgerton,” and “Stranger Things,” but the people who made “Stranger Things” are now moving to Paramount.

If Netflix acquires HBO Max, it would solidify its position as the leading streaming service. With over 300 million subscribers already, Netflix would gain another 73 million from HBO and HBO Max, making it the clear frontrunner in the industry.

According to Clark, Netflix is increasingly investing in areas like the NFL and other sports, leveraging its strong financial position and broad reach. He questions whether these moves are simply aimed at strengthening Netflix’s position in the sports entertainment market.

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Netflix had a tough time maintaining its lead in the competitive streaming market. However, the company has recently recovered strongly, with its stock price increasing by almost 90% over the past year.

Acquiring Warner Bros. would provide Netflix’s Ted Sarandos with a renowned studio lot, which Netflix currently doesn’t have. Their Hollywood offices are currently cramped and located on a small property near the 101 Freeway.

But a Southern California congressman has waved a warning flag.

In a letter sent earlier this week to Florida Attorney General Pam Bondi and Federal Trade Commission Chairman Andrew N. Ferguson, Representative Darrell Issa stated that Netflix has unmatched power in the market.

As I understand it, combining HBO Max subscribers with Warner Bros.’ movie and TV rights would give the new company a seriously large slice of the streaming pie – reportedly over 30%. But, according to Issa, that level of market share could actually run into trouble with antitrust laws. Basically, they might be getting too dominant.

COMCAST

Comcast, which owns NBCUniversal, appears to be Zaslav’s preferred bidder.

Before joining Discovery in 2007, the executive built his career leading NBC’s cable distribution. At Discovery, he became CEO of the smaller cable programming company, which was then under the leadership of industry giant John Malone.

Comcast is separating its cable TV channels—like CNBC, USA Network, MSNBC, and the Golf Channel—into a new entity. Mike Cavanagh, Comcast’s president and head of NBC, has stated that the company isn’t interested in acquiring Warner’s traditional cable networks.

Company leaders are very interested in acquiring Warner Bros., as they think it would be a perfect addition to NBCUniversal’s existing entertainment businesses, such as its theme parks.

Comcast is making significant investments in both live sports – with partnerships like those in the NBA and Major League Baseball – and its Universal Studios theme parks, recently launching its new Epic Universe park near Orlando.

Comcast currently owns the rights to create Harry Potter-themed attractions in its parks. If it were to buy Warner Bros., it would gain access to many other popular characters and franchises – like Superman, Batman, and even those from shows like “The Big Bang Theory” – allowing them to create even more exciting park experiences.

“Imagine having a ‘Game of Thrones’ world at Universal,” said Clark, the analyst.

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The media industry is facing a big challenge as viewing habits change. It needs to figure out how many people will actually pay for most, but not all, of the sports content they enjoy.

As a movie and TV fanatic, I’ve been watching Peacock try to gain traction, and honestly, it’s been a bit of a struggle, especially when it comes to making those must-see, scripted shows. I think if Warner Bros. Discovery combined their studio and HBO Max with Peacock, it could really give it the boost it needs. It feels like Peacock could seriously benefit from Warner’s content library and streaming know-how.

According to Leon, Peacock currently ranks as a minor competitor in the streaming market. He believes the real prize – the valuable content and potential for growth – lies with the studio’s overall business, particularly compared to HBO.

As a critic, I’ve always known Warner Bros. Television as the go-to studio for consistently delivering popular shows. And let’s be real, HBO continues to set the standard for quality television, constantly winning awards and shaping what we all watch. It’s interesting to note that both studios – Warner Bros. and HBO – are actually located right next to each other, with facilities in Universal City and Burbank. It’s a powerhouse combination, really.

Comcast’s offer will likely involve a larger portion of stock and less immediate cash compared to Paramount’s. This could make it less appealing to Warner Bros. Discovery’s board of directors.

Trump has repeatedly criticized Comcast Chairman Brian Roberts on his Truth Social platform, and this public disapproval could create difficulties for Comcast if Trump is president and his administration reviews the company’s operations.

PARAMOUNT

Larry Ellison, co-founder of Oracle, used his good relationship with Donald Trump to help Skydance and RedBird Capital Partners finalize their acquisition of Paramount.

In August, Skydance and RedBird completed their acquisition of Paramount, and shortly after, in September, they began pursuing a deal to buy Warner Bros. Discovery, aiming to create a much stronger media company.

According to a recent report by TD Cowen analyst Doug Creutz, Paramount doesn’t have many highly valuable franchises. He points out that their biggest asset, Tom Cruise, is 63 years old and continues to perform his own dangerous stunts.

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The Ellison family is looking to acquire Warner Bros. Discovery and combine it with Paramount, which is currently the smallest of the major players in the media industry. However, they haven’t reached an agreement on how much the purchase will cost.

Larry Ellison has agreed to guarantee Paramount’s bid for Warner Bros.

I’ve heard that Larry Ellison’s son, David, has been talking with investment groups in the Middle East, like sovereign wealth funds, to try and secure extra funding if his dad’s bid for Paramount succeeds. The Financial Times was the first to report that he’d been in conversations with Saudi Arabia’s Public Investment Fund.

Paramount previously proposed to buy Warner Bros. Discovery with 80% cash and 20% stock, hoping to make the deal appealing to Warner’s leadership. Paramount is trying to avoid taking on a lot of debt, something that previously hindered Warner’s CEO, Zaslav, from successfully growing Warner into a major streaming service.

If Paramount were to acquire Warner Bros. Discovery, it would significantly boost their film and TV production capabilities. Warner Bros. Discovery has a strong history of creating popular franchises and successful shows – many of which have aired on CBS, a network already owned by Paramount.

Paramount is exploring ways to grow its video game division by potentially using characters and stories from Warner Bros. cartoons and popular HBO shows like “Game of Thrones.” They are also considering moving their offices from their current location on Melrose Avenue to the larger Warner Bros. studio lot.

As a movie fan, I think what’s happening with Warner Bros. Discovery is a really big deal. It feels like a turning point for the whole industry. I have a feeling that a few years from now, we’ll look back at this moment as the start of a new era in Hollywood – one where streaming services really build up their exclusive content and become these separate, self-contained worlds for movies and shows.

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2025-11-20 14:35