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Netflix, Warner Bros. Discovery Enter Into Exclusive Talks Over Deal

Despite efforts by Comcast and Paramount Skydance, Netflix has entered into exclusive talks with Warner Bros. Discovery over a potential deal.


Well, it looks like we now know why David Ellison's Paramount Skydance wasn't in the best mood today regarding the current bidding process in play between it, Netflix, and Comcast NBCUniversal to (possibly) purchase Warner Bros. Discovery – either completely (Paramount Skydance) or the streaming and studios businesses (Netflix and Comcast NBCUniversal). Bloomberg first reported, and other sites have confirmed, that Netflix co-CEOs Ted Sarandos and Greg Peters' teams are in exclusive talks with Warner Bros. Discovery CEO David Zaslav's team regarding the purchase of Warner Bros. Discovery's studios and the HBO Max streaming business.

Netflix
Image: Netflix; Shutterstock.com

Though specific details haven't been released, CNN is reporting that Netflix offered $28/share, as compared to Paramount Skydance's $27/share offer (with Paramount Skydance eyeing all of Warner Bros. Discovery). In addition, Bloomberg is reporting that Netflix offered a $5 billion breakup fee should the deal not be allowed to proceed, a figure that may have gone a long way toward easing any concerns on Warner Bros. Discovery's part and shutting down arguments from Paramount Skydance. Though entering into exclusive talks is a major step for both Netflix and Warner Bros. Discovery, there are more than a few hurdles along the way that will have to be cleared.

Ellison's Paramount Skydance's argument from earlier today that only it could obtain the federal approval needed for a merger comes amid concerns that Trump and his administration are beginning to put their thumb on the scale in favor of Ellison's Paramount Skydance having the winning WBD bid. Trump has praised Ellison and his company on social media and during press engagements, with Ellison's hiring of The Free Press' Bari Weiss to head CBS News seen by some as an "olive branch" to Trump, signaling that CBS News will take a softer approach to criticizing him moving forward. In addition, rumblings have grown louder this week that Trump's team would seek to entangle Netflix in legal red tape if the streamer were to receive the winning bid. Interestingly, there have been no rumblings about the Trump DOJ investigating the ramifications of Paramount Skydance's plans to acquire two major media companies in less than three years.


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Ray FlookAbout Ray Flook

Serving as Television Editor since 2018, Ray began five years earlier as a contributing writer/photographer before being brought onto the core BC team in 2017.
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