According to various reports, Paramount Skydance, Comcast, and Netflix are gearing up to submit initial bids for Warner Bros Discovery. These non-binding offers are expected by Thursday, marking a significant step in the ongoing auction initiated by Warner Bros Discovery, with the goal of concluding the process by the close of 2025.
Sources close to the situation indicate that Paramount intends to make a bid for the entirety of the company. Reportedly, they've already made several unsolicited approaches that prompted the review in the first place. The Ellison-controlled group, supported by Oracle co-founder Larry Ellison and RedBird Capital, is said to be preparing a predominantly cash proposal. Their most recent indicative offer was reportedly around $23.50 (€20.35) per share, nearly a 90 percent premium to Warner Bros Discovery’s valuation before news of the potential acquisition surfaced.
In contrast, Comcast and Netflix are reportedly focusing their attention on the Warner Bros. film and television studios and the Max streaming platform. They are not anticipated to bid for the linear portfolio, which includes CNN, TNT, and Discovery Channel. For both Comcast and Netflix, acquiring Warner's studio and streaming assets would bolster their scale against global tech competitors without having to take on the full burden of legacy cable assets.
In parallel with the sale process, Warner Bros Discovery is reportedly exploring a plan to split the company into two separate entities. One would combine the studio and streaming assets, while the other would house its cable networks. This would give potential bidders the option of pursuing either a break-up or a complete takeover. The review comes after a period of underperforming shares and increased pressure on chief executive David Zaslav to identify a more sustainable long-term structure for the business.
Paramount Skydance believes that a straightforward transaction for the entire company would encounter fewer regulatory hurdles compared to rival bids that combine Warner's streaming capabilities with either Comcast's NBCUniversal or Netflix's global SVOD operations. A potential Netflix-Warner partnership, in particular, is expected to face intense scrutiny from the US Department of Justice. Former FCC official Blair Levin has suggested that the streaming market could be defined in a manner that would allow a Trump administration to challenge the deal.
Comcast's ambitions are complicated by long-standing political tensions surrounding its ownership of NBC News and MSNBC. However, the company emphasizes its roughly $38 billion in adjusted earnings from the previous year to demonstrate its financial capacity to fund a major deal. Netflix, with a market capitalization nearing $500 billion, is considered to have the strongest financial position and sees Warner's library and franchises as a means to strengthen its content offerings without acquiring cable networks it doesn't want to manage.