Los Angeles: The entertainment industry is all set to consolidate even further with Netflix agreeing to buy Warner Bros Discovery’s film and streaming business for about $72 billion in a deal that could include HBO, Warner Bros studios, DC Entertainment, and Warner Bros streaming assets under the ever-expanding Netflix brand.
This is a golden opportunity Netflix cannot miss, as it includes adding HBO’s 128 million subscribers to its growing 300 million-strong base in the highly competitive streaming business.
But the deal isn’t finalised yet, despite Netflix’s higher bid of $28 per share as against the other contender, Larry Ellison-backed Paramount’s $26-27 per share, according to reports. Another round of bidding is expected for the same, and Netflix and Paramount Skydance are expected to indulge in a bidding war.
According to the entertainment trade magazine Variety, Paramount Skydance had bid for Warner Bros in November, with the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi backing it. Paramount has dismissed the report, stating that it is ‘categorically inaccurate’.
Paramount Skydance is currently led by David Ellison, the son of Oracle founder Larry Ellison and a close ally of US President Donald Trump. Paramount currently holds just about 9% of the global streaming market with roughly 79 million subscribers. This acquisition could allow it to potentially overtake Amazon Prime Video (200 million subscribers) in the highly competitive streaming market.
Though reports say Warner Bros has approved Netflix’s offer for the streaming business, Paramount isn’t backing down. The company is set to offer shareholders almost $30 per share for all of Warner Bros, including its other assets like CNN, Discovery and Eurosport.
Larry Ellison’s links to the US President could become the trump card here, and how Larry uses his closeness to the US President to get what he wants remains to be seen.
