The bidding war for Warner Bros. Discovery is set to heat up on Thursday as prospective buyers submit their offers to acquire one of Hollywood’s largest film studios.
The nonbinding first-round bids are expected to be submitted by the newly merged Paramount Skydance, Netflix, and Comcast by the end of the day. WBD will then evaluate the offers before Thanksgiving and choose the best bidder by year’s end, Variety reported.
The deal, regardless of who secures it, is expected to shake up the entertainment industry and further consolidate the up-for-auction company’s place as a media giant.
While the amounts of the offers have not been publicly disclosed yet, here are all the major bidders.
Paramount Skydance
Arguably in the best position to merge, Paramount Skydance intends to leverage its friendly relationship with the Trump administration as a way to distinguish itself from the competition.
CEO David Ellison, son of Oracle co-founder Larry Ellison, was among the guests at President Donald Trump’s dinner for Saudi Arabia’s crown prince on Tuesday ahead of the bidding deadline.
That same day, Paramount Skydance denied reports that it was considering a partnership with Arab wealth funds from Saudi Arabia, Qatar, and Abu Dhabi to sweeten the deal for WBD.
The White House is reportedly interested in seeing Ellison’s company succeed. If WBD chose its bid, Paramount Skydance would similarly take control of CNN as it gained ownership of CBS News. CBS was caught up in the deal when the Trump administration’s Federal Communications Commission approved the $8 billion merger over the summer.
Paramount Skydance previously offered $23.50 per share for WBD, which was reportedly rejected, and insisted that the bidder increase the offer to $30 per share. At the higher amount, WBD would be valued at $74.34 billion, up from Paramount’s current offer that values WBD at $58.23 billion.
Netflix
The streaming giant is considering adding WBD’s vast content library to its collection, but the company may be unable to overcome regulatory hurdles if it attempts to acquire the studio.
Federal lawmakers, namely Rep. Darrell Issa (R-CA) and Sen. Roger Marshall (R-KS), have expressed antitrust concerns over Netflix’s possible acquisition of WBD. If combined, according to Issa, both companies would control over 30% of shares in the streaming market.
The Department of Justice is responsible for reviewing the deal for any possible antitrust violations. Sens. Elizabeth Warren (D-MA), Bernie Sanders (I-VT), and Richard Blumenthal (D-CT) raised similar concerns in a letter submitted to DOJ antitrust chief Gail Slater on Tuesday.
In the event it proceeded with the deal, Netflix would likely face scrutiny from the Trump administration because of the company leadership’s donation history strongly favoring Democrats.
Its bid amount remains unclear, but Netflix is reportedly promising to commit to a theatrical window for WBD’s movies as part of its offer. Theatrical releases have long been a weak point for Netflix.
Comcast
The cable and media conglomerate finds itself in a similar position to Netflix, simultaneously facing regulatory challenges and Trump’s disapproval.
A Comcast-WBD merger would join one of the nation’s largest internet service providers with a major studio and its streaming platform, raising regulators’ concerns that the combined entity would reduce competition and consumer choice. In 2015, the DOJ blocked Comcast’s merger with Time Warner Cable for a similar reason.
Adding to Comcast’s problems in sealing the deal, Trump is not fond of CEO Brian Roberts due to MSNBC’s unfavorable coverage of his presidency. Trump once called Comcast and Roberts a “disgrace” to broadcasting and repeatedly described MSNBC as having “bad ratings.”
Roberts attempted to gain a competitive edge over his company’s rivals by visiting Saudi Arabia late last month to persuade the country’s sovereign wealth fund to possibly invest in WBD alongside Comcast, according to reports. The Saudis, however, are concerned about Trump’s dislike of Roberts.
HOUSE DEMOCRATS RAMP UP SCRUTINY OF PARAMOUNT-SKYDANCE MERGER OVER ‘INADEQUATE’ RESPONSE
It remains to be seen whether Saudi Arabia ultimately partners with any of the three current bidders, but the prospect seems increasingly likely as Riyadh strengthens economic ties with Washington, D.C.
Apple and Amazon were reportedly interested in their own bids for WBD, but it’s unclear whether they will join Paramount, Skydance, Netflix, and Comcast in making offers on Thursday.
