Netflix vs Paramount, Warner Bros Acquisition Round 2 Begins... Competition Intensifies

The second round of competition between Netflix and Paramount Skydance (hereafter referred to as Paramount) over the acquisition of Warner Bros. Discovery (hereafter referred to as Warner Bros.), a media and content company well-known for the 〈Harry Potter〉 and 〈The Lord of the Rings〉 series, is expected to intensify.

On the 19th (local time), Reuters reported, citing multiple sources, that Netflix has sufficient cash reserves and that if Paramount raises its acquisition offer, Netflix could also increase its conditions.

Netflix has already signed a contract to acquire Warner Bros.' film and TV studio and streaming service 'HBO Max' for $27.75 per share, totaling $82.7 billion (approximately 120 trillion won), and has submitted a merger notification to U.S. authorities. A shareholder vote is scheduled for the 20th of next month.

However, as Paramount actively sought to persuade Warner Bros. shareholders by promising to pay a penalty, Warner Bros. announced on the 17th that it would resume acquisition negotiations with Paramount.

Paramount has informally expressed its intention to acquire Warner Bros. entirely for $31 per share, with the final proposal to be received by the 23rd. Industry analysts have analyzed that this competition depends on how the board and shareholders evaluate the value of network businesses, such as CNN, that Netflix plans to retain after the acquisition.

Meanwhile, Netflix's co-CEO Ted Sarandos refuted industry concerns in a Bloomberg TV interview on the same day, stating, "The number of theatrical films will actually increase after the Warner Bros. merger."

There have been widespread concerns in the industry that if the OTT company Netflix acquires Warner Bros., the number of theatrical films will decrease. Additionally, regarding Paramount's promise to increase film production to 30 films per year, CEO Sarandos criticized, "That figure is unrealistic, being 10 films more than what healthy production companies would make."