According to a new report from Bloomberg, Netflix has gone big, offering a mostly cash offer to acquire WB/Discovery. Bloomberg say that Netflix were expected to offer a mostly stock offer and this shows they really are determined to get Warner Bros. Discovery under their wing.
Given Netflix remains the biggest streaming platform, adding the content from HBO/Max to that service would simply make it more valuable to subscribers. Not to mention the movie catalogue and all the Discovery programming. Plus, you have two massive IP’s on your hands in the DCU and the new Harry Potter TV series which is filming now.
It’s a very attractive option and it’s not hard to see why Paramount and Comcast are also interested.
The first round of offers was held for interested parties (November 20th), which included the likes of Netflix, Paramount Skydance and Comcast. Those first bids were non-binding. Following that, Warner Bros. requested a second round of offers, expected to be higher than the ones initially submitted. These second round of offers are binding, meaning that Netflix at least for now, is not messing around.
We don’t know what the other’s bid, the second round closed yesterday. However, Bloomberg suggests Netflix’s offer was big in the tens of billions and they were getting a loan to cover the cash aspect of the offer.
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If Netflix do win the bid, then it will cause a ripple of worry in the cinema business. Netflix have always been streaming first and theatrical second. However, a previous report by Bloomberg said the company were willing to adapt if they acquire WB/D. In other words, with this big studio they would be more open to theatrical windows, with the streaming option being the eventual home.
I guess we will just have to wait and see who comes out on top. We’ve heard a bit from Paramount and a bit from Netflix, but there’s bene little press around Comcast so far.
What do you think about this big cash offer from Netflix to acquire WB/D? Since a sale is inevitable, who of the three would you prefer wins this race? Thoughts below.
