A counter offer and doubts cast by US President Donald Trump could scuttle the $72bn media merger announced on Friday
Netflix’s announced $72bn acquisition of Warner Bros was yesterday counter-offered by Paramount Skydance and has fallen under the scrutiny of US President Donald Trump.
On Friday, Netflix released a statement that it had entered into a definitive agreement to acquire Warner Bros., including its film and television studios HBO Max and HBO, but not Discovery Global, which will be split off in 2026.
But on Monday, Paramount Skydance put forth what it called a “superior alternative”, a counter offer of $108bn for the entire Warner Bros. Discovery outfit. Paramount also said its relative size would also be an easier sell when faced with regulatory pressure.
Netflix CEO Ted Sarandos said the deal would help the streamer “define the next century of storytelling”.
David Zaslav, President and CEO of Warner Bros. Discovery, added: “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
But on Monday, Paramount Skydance put forth what it called a “superior alternative”, a counter offer of $108bn for the entire Warner Bros. Discovery outfit. Paramount also said its relative size would also be an easier sell when faced with regulatory pressure.
On Sunday, at an event in Washington D.C., Donald Trump reportedly said Netflix’s agreement could be blocked by authorities over competition concerns. He said Netflix’s market share, already significant, would “go up by a lot” if the two company’s merged. He said he would be personally involved in the deal’s approval process.
Paramount Skydance is owned by the Ellison family helmed by tech billionaire Larry Ellison, after merging Paramount Global, National Amusements, and Skydance Media in August.
Warner Bros. owns some of the world’s biggest IP and most marketable toy and entertainment licenses, including Harry Potter, DC Comics, the Cartoon Network stable, and the Lord of the Rings movie trilogy under its New Line Cinema imprint.
