“BIAS AGAINST US”
In an interview with CNBC on Monday, Paramount CEO David Ellison said there is an “inherent bias” against his company in the bidding. “We will be the largest investor in this deal. We’re literally sitting here today because we are fighting for our shareholders, and we’re also fighting for the shareholders of Warner Bros Discovery,” Ellison said in an interview with CNBC.
Some analysts and industry experts see Paramount as the best candidate for acquiring Warner Bros Discovery, given Ellison’s deep pockets – backed by his father, Oracle co-founder and the world’s second-richest person, Larry Ellison, who has close ties with the Trump administration.
Bloomberg News has reported Trump met Netflix co-CEO Ted Sarandos in mid-November, telling the executive Warner Bros should sell to the highest bidder.
The combined company will have substantial overlap and its combined streaming revenue would decline unless Netflix doubles its prices or runs separate platforms, neither of which the brokerage expects, Morningstar analysts have said.Â
Looking to allay antitrust fears, Sarandos had said the deal would drive value for consumers, shareholders and talent, saying Netflix is “highly confident” in the regulatory process.Â
Analysts said Netflix’s motivation would stem from securing exclusive, long-term control over premium IP and reducing reliance on external studios as it expands into gaming, live entertainment and broader consumer ecosystems.
Access to WBD’s vast IP trove would provide immediate credibility, audience reach and merchandising potential for its gaming ambitions, an area where Netflix is still building original content and brand recognition.
Source: CNA
