What’s next for Netflix and Paramount in the Warner Bros. battle

What It Covers

Bloomberg's Lucas Shaw analyzes the ongoing bidding war between Netflix and Paramount-Skydance for Warner Bros Discovery, examining regulatory challenges, Trump administration influence, and what consolidation means for Hollywood's future structure.

Key Questions Answered

• •Bidding dynamics: Warner Bros Discovery will likely reject Paramount's current $30/share offer but leave door open for higher bids, creating potential escalation between Netflix and Paramount-Skydance with both parties signaling willingness to increase offers beyond initial terms.
• •Trump regulatory uncertainty: Trump administration will likely have minimal influence on auction selection itself but significant impact post-deal through regulatory review. Both deals face legitimate antitrust scrutiny—Netflix for streaming dominance, Paramount for foreign capital and linear TV concentration.
• •Studio value hierarchy: The television production studio represents the most valuable Warner Bros Discovery asset for both bidders. Warner Bros ranks first or second in Hollywood TV production, creating shows like Ted Lasso and owning catalogs including Friends and Big Bang Theory.
• •Tech company absence: Apple and Amazon avoided bidding despite interest in streaming because this would represent their largest acquisition ever in a non-core business. Neither company prioritizes entertainment enough to justify a deal exceeding their historical M&A activity or strategic focus areas.