Paramount, Comcast, Netflix Prepare Bids for Warner as Deadline Approaches

Source: msn/WSJ

11h


Paramount, Comcast and Netflix are preparing bids for Warner Bros. Discovery, according to people familiar with the matter. The initial deadline to submit nonbinding first-round bids is Nov. 20, some of the people said. Warner Discovery is holding the auction process in the hopes of having it completed by the end of the year, the people said.

Paramount intends to participate in the formal auction process and remains committed to buying the entire company, people familiar with the matter said. The David Ellison-led company previously submitted multiple unsolicited offers to buy Warner Discovery, which then put itself on the block.

Comcast and Netflix are primarily interested in the Warner Bros. movie and television studios and the HBO Max streaming service, but not its cable network holdings, which include CNN, TNT and Discovery Channel, people close to those companies said. Warner Discovery, meanwhile, is moving forward with plans to separate its assets into two companies: one to house its studios and streaming businesses and the other comprising its cable networks.

Paramount and Comcast believe they would benefit from greater scale to compete against big tech companies such as Netflix and Amazon, both of which operate global streaming services, people familiar with the matter said. Although Paramount and Comcast already have significant entertainment holdings, their efforts to compete in streaming have lagged behind rivals. For Netflix, Warner Discovery’s vast library of movies and TV shows could enhance its content offering.

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