Paramount is intensifying its efforts to acquire Warner Bros. Discovery by raising its offer for the media giant’s assets, supported by Middle Eastern sovereign wealth funds, particularly from Saudi Arabia. In contrast, Comcast has proposed an alternative strategy, suggesting a merger between its NBCUniversal division and Warner Bros., which would combine major film studios and content libraries to create a new entertainment entity.
Comcast’s approach does not involve purchasing Warner’s basic cable channels but instead aims to unify popular streaming platforms, HBO Max and Peacock, under a single umbrella. This combination could leverage Universal’s theme parks with well-known characters from both franchises, enhancing attraction offerings.
Each of these companies submitted second-round proposals to Warner Bros. Discovery’s banking advisors, with anticipation of a winner being announced this month. Representatives from Paramount, Comcast, Netflix, and Warner Bros. Discovery have kept silence on the bids due to their confidential nature.
In earlier articles, it was noted that Paramount has been vying for Warner Bros. Discovery’s assets since September, shortly after the Ellison family took control of Paramount. Their recent bid is designed to compete with Netflix, which has also expressed substantial interest in acquiring Warner Bros. and its extensive intellectual property.
Analysts estimate these proposals could value Warner Bros. Discovery at around $70 billion, a figure significantly higher than its trading levels earlier in September. Paramount, while primarily interested in Warner’s cable channels such as CNN and TNT, has gained financial backing from Apollo Global Management and various sovereign wealth funds from Saudi Arabia, Qatar, and the UAE.
Although there is optimism regarding the regulatory landscape in the U.S. for Paramount—given connections between Larry Ellison and former President Trump—foreign regulators could pose challenges, particularly concerning the involvement of Saudi investors. The potential merger would need to navigate scrutiny not just in the U.S. but also in Europe and Asia.
On the other hand, Comcast faces its own regulatory hurdles, especially considering the criticisms from Trump regarding its ownership of MSNBC, which could complicate its pursuit of Warner Bros.
As bids are floated and negotiations unfold, the entertainment industry is closely watching this transformative moment. Should either Comcast or Paramount succeed, it could reshape the future of the media landscape by consolidating significant content and expanding market power in an industry characterized by intense competition and rapid evolution.