Paramount and Netflix were locked in a months-long heated bidding war over WBD, which had fallen into financial disrepair. A February bid from Paramount proved too much for Netflix, and it announced Thursday that it wouldn’t increase its bid, clearing the way for Paramount. Paramount and WBD announced their official merger deal on Friday, greatly expanding the cultural juggernaut.
The deal gives Paramount ownership of several cultural and entertainment titans: Game of Thrones, Mission Impossible, Harry Potter, Top Gun, the DC Universe, and SpongeBob SquarePants.
“From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company,” Paramount Chairman and CEO David Ellison said in a statement. By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners, and shareholders — and we couldn’t be more excited for what’s ahead.”
WBD President and CEO David Zaslav was equally optimistic in his own statement, which was released alongside Paramount’s announcement.
“I’m very pleased with the outcome we achieved for WBD shareholders and the entertainment industry. Our guiding principle throughout this process has been to secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors. We look forward to working with Paramount to complete this historic transaction,” he said.
Among the many channels and brands the deal adds to Paramount’s catalogue are: Discovery Channel, HBO, Cartoon Network, Adult Swim, CNN, TNT, TBS, truTV, the Travel Channel, Animal Planet, and Turner Classic Movies. Streaming-wise, Paramount now has the ability to combine Paramount+, HBO Max, and Pluto TV.
The Netflix-Paramount bidding war was constantly overshadowed by wider national politics. Paramount is viewed as more friendly to the Trump administration and Republicans, while Netflix is viewed as more friendly to the Democratic Party, particularly given its years-long collaborations with the Obama family.
NETFLIX CEDES WARNER BROS. BIDDING WAR TO PARAMOUNT AFTER DECLINING TO INCREASE OFFER
Last weekend, Trump pressured Netflix to fire former U.S. Ambassador to the United Nations Susan Rice from its board over comments she made about punishing companies that kowtow to Trump. If she was not removed from the board, Trump vowed that the streaming service would “pay the consequences.”
On Tuesday, Paramount CEO David Ellison attended the State of the Union address based on an invitation from Sen. Lindsey Graham (R-SC).
