Tag: Paramount

Netflix has officially revised its high-profile acquisition offer for Warner Bros. Discovery (WBD), switching from a stock-and-cash proposal to an all-cash deal valued at $82.7 billion. The amended offer sets the price at $27.75 per share, covering WBD’s studios, HBO, Max, DC, Harry Potter, and Game of Thrones libraries, among other key assets.

This move is seen as a strategic maneuver by Netflix to provide greater certainty to WBD shareholders while fending off a competing bid from Paramount.

Originally, Netflix’s bid included a mix of stock and cash. However, in high-stakes mergers, the uncertainty of stock-based offers can create hesitation among shareholders, especially when competing offers are on the table. By moving to a 100% cash offer, Netflix ensures that WBD shareholders receive a guaranteed payout, strengthening the appeal of their proposal.

“The amended cash offer provides certainty and maximizes value for Warner Bros. Discovery shareholders,” WBD’s board stated.

In comparison, Paramount’s rival bid, reportedly up to $30 per share, has intensified the competition, forcing Netflix to rethink its strategy to retain a competitive edge.

The assets included in the acquisition are a significant addition to Netflix’s content library:

• Warner Bros. Studios: Access to decades of film and television production.
• HBO & Max: Premium streaming content, including iconic series like Succession, Euphoria, and Game of Thrones.
• DC Universe: Superhero franchises including Batman, Superman, and Wonder Woman.
• Harry Potter Franchise: The lucrative Wizarding World of movies and spin-offs.
• Game of Thrones Library: One of the most popular television franchises globally.

Netflix vs Paramount: The Streaming Rivalry

Paramount’s interest in WBD escalated the bidding war. While details of Paramount’s offer vary, reports indicate the company is also pursuing an all-cash deal, intensifying the race to acquire one of the most valuable media libraries in the world.

Paramount Skydance Launches Hostile $108 Billion Bid to Steal Warner Bros. Discovery from Netflix

Netflix’s cash-only strategy reduces uncertainty for WBD shareholders, giving it an advantage over offers that mix stock, which may fluctuate in value depending on market conditions.

If completed, the deal would mark a historic consolidation in the media and streaming sector. Netflix would gain a massive library of films, series, and franchises, dramatically expanding its content offerings and subscriber appeal.

For WBD, the deal provides a cash exit for shareholders, allowing the company to settle its operations with certainty amid growing competition in streaming.

Netflix’s switch to an all-cash $82.7B deal for Warner Bros. Discovery highlights the streaming giant’s commitment to content dominance in an increasingly competitive market. With Paramount also in the race, the coming months are set to define the future of global streaming, possibly giving Netflix unprecedented control over some of the most valuable media franchises in history.

About a month ago, Hollywood was shaken when the announcement was made that the Ellison family backed Paramount Skydance’s plans to purchase Warner Bros. Discovery. If the deals go through, Paramount ($18.6B) and David Ellison will become the kings of Hollywood, sitting on Warner Bros.’ ($42.3B) valuable IP.

In the early hours of October 12, it was reported that Warner Bros. had rejected Paramount Skydance’s acquisition price, stating it was too low per share.

According to Bloomberg, Paramount’s initial bid of $20 per share was not attractive to Warner Bros. Discovery despite its stock price being around $17 on Friday’s market close.

David Ellison will allegedly re-evaluate his bid, looking for additional funds and backing while taking his bid directly to WBD shareholders.

This will be Ellison’s second big move in Hollywood this year. Earlier this year, David Ellison’s Skydance completed its merger with Paramount at $8 billion. Skdance Media is now the parent company to Nickelodeon, MTV, CBS and more, including properties like Teenage Mutant Ninja Turtles and Star Trek.

Warner Bros. Discovery is expected to split into two companies (Warner Bros. the Studio and Discovery Global for all the TV properties); companies like Paramount, Skydance, and Netflix are in a bidding war to acquire all of its properties, with more expected to announce their interest in the coming months.

Starting April 30th, subscribers to Paramount Media Networks‘s Showtime streaming app, which was launched in 2015, will no longer be able to access its streaming service.

If you use Showtime or enjoy its content, all hope is not lost. To access Showtime services, opt into the Paramount+ With Showtime subscription plan.

According to Showtime’s Help Center Page: “Now that subscribers can access their favourite Showtime programs on Paramount+ by subscribing to the Paramount+ with Showtime plan, the Showtime streaming service will shut down on April 30, 2024…Current Showtime streaming subscribers will continue to have access to the Showtime streaming service until it is shut down on April 30, 2024.”

The Showtime cable channel is still available but has Paramount+ With Showtime since January. The Showtime streaming app has been in existence for almost 9 years. The Paramount+ With Showtime ad-free streaming package was launched in June 2023, alongside a price hike from $9.99 to $11.99 per month.

The move with Paramount’s Showtime is not the first; Warner Bros. Discovery had a similar experience. When Max was launched, it merged with HBO to become HBO Max and killed off services like HBO Now and HBO Go; it was later rebranded as Max in 2023.