The Battle For Warner Bros Intensifies

The battle between Netflix and Paramount for Warner Bros Discovery(WBD) has been heating up this week. Both are seeking to take control of WBD’s studios, streaming operations and extensive content library.

The backdrop to this battle tells a story of a rapidly consolidating media industry, where traditional studios are under pressure from declining revenues and intense competition from streaming platforms. Warner Bros’ intellectual property including Harry Potter, Game of Thrones, the DC universe and classic film titles makes it a much sought after strategic prize.

Latest reports suggest that Netflix are front runners to seal a deal, they are preparing to submit a new offer at $82.7 billion for WBD. Paramount has tabled a larger bid of $108.7 billion for WBD. Despite the lower offer, Warner Bros’ board has shown a preference for Netflix’s proposal, arguing that it offers greater certainty of completion compared with Paramount’s bid, which relies heavily on debt financing.

To add more fuel to the fire, Paramount has filed a lawsuit seeking access to the financial analysis underpinning Warner Bros’ board’s support for the Netflix deal. It claims that shareholders cannot make an informed decision without understanding why a lower-valued bid has been recommended. Warner Bros has firmly rejected Paramount’s claims, describing the lawsuit as meritless and maintaining that Paramount’s offer remains inadequate due to its reliance on debt and execution risk.

Whilst the Netflix ad-supported tier is not yet available in Ireland. The sheer outlay in buying WBD and expanding the streaming inventory on Netflix would surely accelerate the roll out of the ad-supported offering to these shores. For Irish advertisers, the outcome of this deal could materially affect media planning and buying strategies. Exact dates are unclear when the ad-supported tier will be available in Ireland, but when we hear more on this we will update you.

Source: RTÉ