Warner Bros. Discovery (WBD) has successfully fended off the initial hostile takeover attempt by Paramount, according to The Hollywood Reporter. Paramount, under David Ellison’s leadership, made a $108 billion bid to WBD shareholders, promoting itself as a more suitable partner than Netflix, but the WBD board advised shareholders to decline the offer.
As a result, Netflix’s acquisition of WBD’s Warner Bros. division will proceed through regulatory review for the time being. However, Paramount is expected to submit a larger offer soon. Unlike Netflix, Paramount aims to buy all of WBD’s shares.
Samuel A. Di Piazza Jr., chairman of WBD’s board, explained that the board found Paramount’s offer insufficient compared to Netflix’s and viewed a Paramount acquisition as risky due to links to the Kingdom of Saudi Arabia and uncertainties about other financial supporters.
There is potential for a bidding war, with Paramount possibly raising its bid and Netflix having the opportunity to match it. Ellison has already expressed willingness to increase the offer. Since Paramount’s bid is all-cash, some industry observers believe WBD might reconsider and opt for the pricier Paramount deal down the line.
The impact on AEW, which has a multi-year broadcast agreement with WBD, remains unclear but likely won’t be a pressing concern until the next contract negotiation.
Fan Take: This development is crucial for AEW fans because any shift in WBD’s ownership could change how AEW is broadcast or promoted. A bidding war and eventual new ownership might bring fresh opportunities or challenges for AEW’s growth and visibility in the sports entertainment world.
