Warner Bros Discovery (WBD) has requested bidders for the company submit second round offers by December 1.
Paramount under the new leadership of David Ellison submitted a bid – its fourth – for the entire WBD by the previous November 20 deadline. Universal owner Comcast and Netflix also bid, although only for the media company’s studios and streaming business.
WBD CEO David Zaslav has made it known he believes a deal could close by the end of the year, although regulators in the US and abroad may have something to say about that.
All three known bidders have signed non-disclosure agreements during the prior round. That could mean that there are others in the bidding process, given that similar arrangements would apply to less well-known bidders.
Ellison and his father Larry Ellison enjoy a good relationship with Donald Trump. The US president has shown he will mobilise against media companies if they upset him, and has found an ally in Federal Communications Commission Brendan Carr, the government agency that scrutinises media deals.
According to unconfirmed reports, Trump may have exerted influence over the Ellisons with regard to Rush Hour 4. It emerged today that Paramount is closing a deal with Warner Bros to distribute the upcoming action comedy sequel. Franchise regular Brett Ratner, who was quietly making a comeback after #MeToo allegations in 2017, will direct the project. Amazon MGM Studios will release Ratner’s documentary Melania, about the First Lady Melania Trump, in January.
Netflix is the biggest surprise participant after co-CEOs Ted Sarandos and Greg Peters have said publicly they are builders not buyers. However Netflix needs franchises to keep and expand upon its 300m-plus subscriber base and at the very least will benefit from a deep dive into the inner workings of WBD, particularly with regard to streaming platform HBO Max.
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