Paramount throws in more cash in bid for Warner; Comcast wants to combine assets with NBCUniversal

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Paramount is intensifying its attempt to acquire Warner Bros. Discovery, increasing its offer with financial support from investment funds in the Middle East, including Saudi Arabia. Meanwhile, Comcast has suggested forming a brand new company focused on entertainment.

Rather than making a cash offer, Comcast has suggested merging NBCUniversal with HBO and Warner Bros.’ television and film studios. This would create a new, independent entertainment company, sources say, but those sources aren’t permitted to discuss the details publicly.

Bringing these companies together would combine strong film production companies with extensive content libraries and moderately successful streaming platforms like HBO Max and Peacock. It would also allow Universal’s theme parks to create new rides and experiences based on popular characters like Batman, Harry Potter, and Sheldon Cooper.

Comcast, even though it would still be the majority owner, doesn’t want to take over Warner’s regular cable channels.

I reached out to Paramount, Comcast, Netflix, and Warner Bros. Discovery for comment on the ongoing bidding process, but all representatives declined to speak. They understandably pointed to the sensitive and private nature of the negotiations as the reason, so details remain under wraps for now.

Comcast, Netflix, and Paramount all sent in new proposals on Monday to Warner Bros. Discovery’s financial advisors. Warner Bros. Discovery is aiming to choose a buyer this month.

Larry Ellison, the co-founder of Oracle, and his family, who recently took ownership of Paramount from Shari Redstone, have been trying to acquire Warner Bros. Discovery since September.

Paramount is making a new offer to compete with Netflix, which is trying to buy Warner Bros. using mostly cash. Netflix is particularly interested in Warner Bros.’ valuable content and its 110-acre studio lot in Burbank.

Bid amounts were unclear on Tuesday.

Analysts estimate that different deal structures could value Warner Bros. Discovery at almost $70 billion, which is three times its stock price from the beginning of September.

Hollywood Inc.

Paramount, Comcast, and Netflix are all likely to send in bids for parts or all of the famous media company before Thursday.

Currently, Paramount is the sole company interested in buying Warner Bros. Discovery’s collection of cable channels, which includes popular networks like CNN, TNT, Food Network, Cartoon Network, and TLC.

Paramount is seeking funding from Apollo Global Management and investment groups from Saudi Arabia, Qatar, and the United Arab Emirates to make its bid. If Paramount succeeds in buying Warner, the Ellison family and RedBird Capital Partners would still be the majority owners of the combined company.

The Middle Eastern investors would have only a small stake, one of the knowledgeable people said.

Both Variety and Bloomberg have reported on the interest of Middle Eastern investment funds in a potential deal for Paramount. Bloomberg was the first to detail how Comcast structured its offer.

Hollywood Inc.

Paramount, Comcast, and Netflix are expected to make a second offer on Monday, significantly increasing competition.

Each of the various deal configurations would face stiff regulatory scrutiny.

Because President Trump and Larry Ellison have a friendly relationship, the planned acquisition of Warner Bros. Discovery by Paramount is expected to easily pass U.S. regulatory reviews. The president has also expressed a preference for Ellison to be in charge of both CBS, which is part of Paramount, and CNN, owned by Warner Bros. Discovery.

If Paramount Pictures and Warner Bros. merged, the new company would control roughly 30% of the movie ticket sales in the United States.

However, international regulators may be uneasy about this deal, especially since it was strongly supported by Trump. Their concerns could also stem from the involvement of Saudi investors in a significant entertainment company that also owns CNN, a major global news outlet.

David Ellison, the head of Paramount, attended a White House dinner last month that was held in honor of Saudi Crown Prince Mohammed bin Salman.

The recent state dinner highlighted the improving relationship between Washington and the Saudi royal family, especially considering that just seven years ago, Crown Prince Mohammed bin Salman was widely ostracized following the murder of journalist Jamal Khashoggi.

But any deal also would be subject to regulators in Europe and Asia.

Comcast would encounter a particularly bumpy regulatory path.

Comcast, a Philadelphia-based company led by Brian Roberts, has often been a target of criticism from Donald Trump, partly due to its ownership of the news channel MS NOW (formerly MSNBC). Currently, Comcast is separating MS NOW and other cable channels into a new, independent company called Versant.

However, some people think that Donald Trump’s opposition could be enough to block the Justice Department from allowing Comcast to buy Warner Bros.

Netflix’s bid has also raised anti-trust concerns.

According to a recent report from Bank of America, if Netflix were to buy Warner Bros., it would essentially win the streaming competition. Netflix would become the clear leader in Hollywood, even more dominant than it is now.

Netflix, the streaming service based in Los Gatos, currently has over 300 million subscribers globally. If they added HBO Max, they would gain another 70 million subscribers, significantly surpassing their competitors in size.

In a recent letter to Florida Attorney General Pam Bondi, Congressman Darrell Issa stated that Netflix has unmatched power in the market. Bondi’s department would be responsible for reviewing any potential deal involving the company.

According to Issa, combining HBO Max subscribers with Warner Bros.’ content rights would significantly strengthen their market position, potentially giving them over 30% of the streaming market – a level that antitrust laws often scrutinize.

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2025-12-03 02:02