With new bids, Warner Bros. Discovery looks to narrow the auction field

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Warner Bros. Discovery’s winnowing of bidders is expected to accelerate this week.

The deadline for updated bids is Monday. Warner’s board expects the three companies competing to buy the company – Comcast, Paramount, and Netflix – will submit improved offers. Initial, non-binding offers were made by each of them last month, setting a starting point for negotiations.

Bankers at Warner have hinted to potential buyers that there may be further rounds of bidding, but they expect the offers submitted on Monday to help them identify their top choice for a merger, sources familiar with the matter said. These sources were not permitted to speak publicly about the ongoing process.

Warner Bros. Discovery hopes to make its pick before the winter holidays begin.

As a lifelong movie and TV fan, I’m telling you, things are about to change big time in the entertainment world. That’s what Bank of America analyst Jessica Reif Ehrlich and her team are saying in a new report – we’re on the verge of a massive shift in how media works.

The sale of Warner Bros. is the most significant merger in Hollywood in three decades, since Disney’s acquisition of ABC and ESPN kicked off a wave of consolidation. That period culminated in Time Warner’s problematic merger with AOL in the early 2000s, a failed partnership that severely damaged the value of Warner’s well-known brands. It took over ten years for the company to bounce back.

Netflix, Amazon, and Apple quickly joined the market, sparking a streaming boom that has fundamentally changed how people consume entertainment. This shift has destabilized the traditional financial model of the entertainment industry, which relied on expensive cable packages and big-budget movie releases.

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

According to Bank of America analysts, the current bidding war for Warner Bros. shows that traditional media companies of its size can’t compete financially with streaming giants like Netflix or tech companies like Amazon.

Analysts suggest that Paramount, owned by the Ellison family, and NBCUniversal (Comcast) might both look to expand their businesses. This could lead them to compete for Warner Bros. assets, including the film and TV studios, the HBO channel, and the HBO Max streaming service.

Representatives of Warner, Paramount, Comcast and Netflix declined to comment.

I really think Paramount has the best chance of succeeding. The Ellison family has so much money and influence – they’re well-connected politically, and that gives Paramount a huge advantage, in my opinion.

President Trump and Larry Ellison have a friendly relationship, which could help Ellison’s potential acquisition of CBS and CNN get approved by the Justice Department. The president has publicly stated his support for Ellison taking control of both CBS, which is currently part of Paramount-Skydance, and CNN, owned by Warner Bros. Discovery.

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People are now spending an average of $70 a month on streaming services like Netflix and Disney+, a significant increase from the $48 they spent on average just last year, according to a recent report by Deloitte.

Paramount is positioned to acquire Warner Bros. in a streamlined deal, as they’ve shown interest in purchasing the entire company, including popular cable channels like TBS, TNT, HGTV, Food Network, and Animal Planet. David Ellison, Chairman of Paramount, initiated the potential acquisition with an initial approach in September and followed up with three offers by mid-October.

Warner’s board didn’t accept any of the initial offers, finding them too cheap. As a result, the company invited other companies, including Comcast and Netflix, to make their own bids.

I’m hearing that Paramount’s Bob Bakish has been making the rounds in the Middle East, chatting with some major investment funds. Apparently, he’s laying the groundwork for potential funding if Paramount manages to snag Warner Bros. Discovery in the ongoing auction. It’s still early stages, just preliminary talks, but it sounds like he’s trying to secure the financial backing needed to pull off a deal.

Warner Bros. Discovery shares traded around $24 on Monday.

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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.

Analysts predict strong growth for Comcast, the cable company led by Brian Roberts of Philadelphia.

I’m hearing from industry insiders that David Zaslav, the head of Warner Bros. Discovery, seems to favor a deal with Comcast rather than Paramount. It sounds like Comcast is his preferred partner right now.

By owning Sky, a major European broadcaster, Comcast has expanded its reach into international markets.

But Comcast carries significant debt and its stock has been stalled for years.

Both Comcast and Netflix are interested in purchasing only the HBO studios and its streaming service.

Both Comcast and Netflix have no interest in buying Warner’s traditional cable channels. Comcast, in fact, is getting rid of its own channels – like USA Network, CNBC, MS NOW, and Golf Channel – by spinning them off into a new company called Versant, which is expected to be completed in January.

Bank of America analysts believe cable TV is nearing its end. They see Warner Bros. as its most valuable asset, thanks to its extensive library of popular franchises like Harry Potter, DC Comics, and Game of Thrones, among many others.

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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.

As a movie and TV reviewer, I see a Warner Bros./HBO acquisition as a huge win for NBCUniversal. It would seriously ramp up their ability to make shows, and more importantly, give their Peacock streaming service the boost it desperately needs. Let’s face it, Peacock hasn’t exactly been knocking it out of the park with original, scripted content, and this move could change everything.

Comcast is also interested in Warner Bros.’ popular franchises like Superman, DC Comics characters, “Lord of the Rings,” and “The Matrix.” These could add exciting new attractions and characters to Comcast’s Universal Studios theme parks.

As a movie and TV fanatic, I’ve noticed Netflix really understands how valuable those big Warner Bros. franchises are. Plus, Warner Bros. Television has consistently churned out hits for years – think shows like “The Big Bang Theory,” “Ted Lasso,” and even newer stuff like “The Pitt.” They just know how to make shows people love.

Acquiring Warner Bros. would provide Netflix’s Ted Sarandos with a famous movie studio lot, which Netflix doesn’t currently have. Netflix’s existing Los Angeles offices are on a small property near the 101 Freeway.

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The popular streaming service is bringing a unique experience to malls: fans can now enjoy their favorite shows alongside food and drinks.

These potential mergers would likely cause more job losses in the media industry, which has already been struggling with a decrease in TV and film production and has seen thousands of workers laid off in the past two years.

Over the past few months, Paramount has laid off more than 2,600 employees. In August, the Ellison family and RedBird Capital Partners finalized their acquisition of the company.

Warner Bros. Discovery has laid off employees while dealing with a large amount of debt from its 2022 merger, when Discovery acquired WarnerMedia from AT&T for $43 billion.

Warner still carries about $34 billion of debt.

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2025-12-01 23:32