Netflix vs. Paramount: Why each media giant says it has the best Warner Bros.

Core Viewpoint - The competition between Paramount and Netflix intensifies as Paramount makes a hostile bid for Warner Bros. Discovery (WBD) after WBD accepted Netflix's offer for its studio and streaming business [1][4]. Financials - Paramount offers $30 per WBD share, totaling an $82.7 billion offer, which includes $72 billion in equity, compared to Netflix's $27.75 per share offer for WBD's streaming and studios business [4]. - Netflix's offer includes a mix of cash and stock, while Paramount's offer is all cash, amounting to $17.6 billion more than Netflix's deal [4]. - Netflix would incur a $2.8 billion breakup fee if WBD accepts another offer, while it would face a $5.8 billion fee if the deal is blocked by regulators [7]. Approval Process - Paramount's Ellison claims a higher likelihood of winning regulatory approval, anticipating it could come in as little as 12 months [5]. - Wall Street analysts view Netflix as having a tougher approval path, although Netflix has been engaging with the Trump administration to bolster its case [8]. Impact on Hollywood and Consumers - Ellison argues that the Paramount deal would enhance job growth and consumer options, with plans for over 30 theatrical releases annually, contrasting with Netflix's quicker streaming releases [6]. - Netflix asserts that its acquisition of WBD would provide better value and choice for consumers by combining its offerings with WBD's libraries, potentially reaching a larger audience [9]. - Netflix anticipates $2 billion to $3 billion in cost savings from the deal, primarily through the elimination of overlapping support staff [10].