Comcast and Netflix are joining Paramount in putting bids in for Warner Bros. Discovery ahead of a Pre-Thanksgiving deadline.
The companies are preparing bids for the media conglomerate ahead of a Nov. 20 deadline to submit nonbinding first-round bids, an individual with knowledge told TheWrap. As previously reported, a decision on a potential transaction is expected around Christmas.
Comcast and Netflix are primarily interested in the Warner Bros. movie and television studios and its streaming service HBO Max, but not the company’s cable network holdings, according to a Wall Street Journal report. WBD’s cable offerings include CNN, TNT and the Discovery Channel.
Paramount, now led by David Ellison, remains committed to buying the entire company, including both its studio and cable holdings, if given the chance. The CEO said there are no “must-have” acquisitions for the media giant in the company’s earnings call Monday, and added the company is currently in a buy stage rather than a building one.
Paramount, Comcast, Netflix and Warner Brothers Discovery have not responded to TheWrap’s request for comment.
Ahead of sale talks, Warner Brother Discovery was set with plans to separate its assets into two companies. One would house its studios and streaming businesses, led by CEO David Zaslav. The other would be comprised of its cable assets and global networks, led by current CFO Gunnar Wiedenfels.
Zaslav reportedly met up with Comcast CEO Brian Roberts last week to explore a potential bid for the studio and streaming assets. Specific details of the deal were not revealed.
Paramount and Comcast would benefit from Warner Brothers’ content and audiences, as their streaming hubs are less profitable than that of their tech competitors Netflix and Amazon. For Netflix, access to WBD’s catalogue would be a valuable asset in enhancing their content offerings.
As of last month, WBD rejected three separate bids from Paramount to takeover the company. The offers were for $19 per share, a second for $22 per share and a third for $23.50 per share. Ellison even offered Zaslav a a co-CEO and co-chairman title at the combined company. The Paramount bid is backed by the Ellison family, including Oracle co-founder Larry Ellison, who is a stakeholder in the entertainment conglomerate.
