Paramount, Comcast and Netflix have submitted bids to acquire all or part of Warner Bros. Discovery, ushering in a dramatic period of evolution for the media business.
Multiple sources confirmed the bidding to Deadline, with the word coming as a deadline for non-binding bids arrived on Thursday. There will be another round, after the particulars are hashed out, when bidders will be asked if they want to submit final, binding offers.
While it comes as little surprise, the chase for WBD promises to remake Hollywood at a time of deep uncertainty about the tech sector, AI and the rapidly changing habits of audiences.
WBD has indicated that they believe the sale process can be concluded by late-December, though the transaction would then require at least a year to be cleared by regulators.
The ultimate fate of WBD, home of the fabled Warner Bros. studio, prestige TV power HBO, news pioneer CNN and DC Comics, has been Topic A across Hollywood in recent weeks. Paramount has been in pole position in the race, in part because its bid is for the entire company, including its portfolio of struggling cable networks. Netflix and Comcast are after the studios and streaming part of the media giant.
For employees in Burbank, New York, Atlanta and other WBD strongholds, the notion of being taken over for the fourth time in a decade is a less-than-welcome topic. Casey Bloys, head of HBO and Max content, said Thursday during a programming showcase that he preaches to the troops to try to focus on what they are able to control and not “all of that theoretical” possibility, he said. Otherise, “It’s kind of a waste of energy.”
David Zaslav, longtime former CEO of Discovery Communications and an ex-NBC exec, engineered the $43 billion deal to combine Discovery with WarnerMedia in a transaction with AT&T in 2022. The company’s stock sunk quickly after the deal and the price remained depressed during three years of cutbacks, writeoffs, rebrands and redos. One of the biggest and most storied media players had become a takeover target.
Earlier this year, WBD announced plans to split into two companies in 2026: one with studios and streaming and another controlling the linear networks. After the split plan, and with the merger of Paramount and Skydance barely complete, Paramount went after bigger quarry, making the first of three offers for WBD.
Paramount is uniquely positioned in the derby not only because it wants to swallow the whole company, including its less-desirable assets, but because of the family behind it. CEO David Ellison is the son of Larry Ellison, co-founder of Oracle and one of the richest people on Earth. In addition to his vast financial resources, the elder Ellison is an ardent supporter of President Trump. That would seem to smooth the company’s path through the regulatory process given how thin the line has become between the White House and the Department of Justice and other parts of government.
Comcast could encounter a bumpier path given Trump’s longtime animus toward MSNBC (now MS NOW) and figures like NBC late-night host Seth Meyers and Comcast CEO Brian Roberts.
Whoever ends up at the altar also will need to be ready to make the case with international regulators, given that the standards, especially in Europe, tend to be more strict.
The question Stateside will be whether the sheer size of the deal (Paramount’s highest bid has been north of $60 billion) might prompt action by state attorneys general, who may perceive a monopoly threat to consumers.
The New York Times first reported that the three bids became official.
Jill Goldsmith contributed to this report.
