Netflix Allows Warner Bros. to Consider Paramount’s Latest, Crazy Offer

The done deal may be undone. Netflix has given Warner Bros. its blessing to listen to Paramount’s new Hail Mary attempt to take over company.

While Warner Bros. chose Netflix over Paramount in a bidding war that (seemingly) ended in December, Paramount has refused to walk away. In the latest twist, Paramount says its $30-per-share all-cash offer is not its “best and final” proposal. The new offer could hit $31 per share.

Warner Bros. Discovery stock was trading for $8 just 10 months ago.

Warner Bros. has 7 days to sift through Paramount’s offer. A special meeting of WBD shareholders will be held on March 20. The company’s board still unanimously favors the Netflix deal.

If Warner Bros. does ultimately choose Paramount, Netflix would walk away with a $2.8 billion consolation prize from its rival.

Our Take

We’ve long believed the best outcome for consumers would be to have Warner Bros. Discovery continue as a standalone company, ideally separating the WB from the D as they have been planning to do. More studios mean more competition, more movies, more TV shows, and more creative people getting work in Hollywood.

Consolidation has been bad for consumers in nearly every industry. After Disney gobbled up Fox’s entertainment arm, we saw a decline in their combined output, compared to what it was pre-merger.

If one side has to win this war, Netflix is probably the better outcome, if only to keep some important media properties out of the hands of a man who has intentionally sabotaged CBS News with an unqualified, partisan hack at the helm.

Paramount’s David Ellison is throwing around his father’s money in an attempt to create the ultimate media behemoth, but he has not yet shown the ability to handle the properties he already owns. Ellison ran off Paramount cash cow Taylor Sheridan. Many CBS News and “60 Minutes” staffers (including Anderson Cooper) have quit over the direction of the company.

So far, the only “successes” we’ve seen from Ellison are a wild overpay for UFC, a price hike, the death of the Paramount+ free trial, and a partnership with a bull riding circuit.

Whether Netflix or Paramount gets WBD, the “winning” bidder will take a massive financial setback while it incorporates is former rival.