Alongside Dueling DOJ Reviews In U.S., Netflix & Skydance Will Also Face A Rare, Concurrent Head-To-Head Regulatory Battle In Europe For Their WarnerDiscovery Pursuits. EU Officials Could Have Some Leverage On Opening Path For Any Frontrunners But They Do Not Pick Winners In Hostile Takeover Bids.
by lowell2017
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“European Union regulators are poised to review competing bids for Warner Bros. Discovery Inc. at the same time — thrusting Netflix Inc. and Paramount Skydance Corp. into a rare head-to-head antitrust battle.
People familiar with the matter said the parallel probes are now inevitable due to the timing of the rival proposals and the fact that both sides have already sounded out EU merger watchdogs about their plans.
A double probe would give Brussels regulators unusual leverage over Warner’s destiny — a swift clearance for one bidder, combined with deeper scrutiny or demands for concessions for the other, could effectively clear a path for a frontrunner to emerge, said the people, who spoke on condition of anonymity.
Netflix is in a hotly contested pursuit of Warner Bros.’ streaming and studio businesses. On Tuesday, it announced an amended agreement to buy those divisions for $27.75 a share in cash after previously offering a mix of cash and stock. Warner Bros. plans to spin off its cable networks in a separate transaction. Paramount Skydance Corp., led by technology scion David Ellison, is offering $30 a share in cash for all of Warner Bros.
While Netflix’s bid is currently preferred by the Warner leadership, its deal is seen as more complicated from an antitrust perspective, with the streaming giant’s powerful position in subscription video-on-demand across Europe.
Paramount’s bid could get a boost if the studio giant proves to have a smoother review than Netflix. While EU regulators do not pick winners in hostile takeover bids, the European Commission’s decision may very well tilt the balance.
Paramount declined to comment. Netflix and the commission declined to immediately comment.
Under EU rules, takeovers above minimum sales thresholds are examined by the 27-nation bloc’s merger authority, headed by antitrust commissioner Teresa Ribera. Initial probes last about a month and are generally extended by a further 90 days, with further delays added if officials seek more information or push for concessions. At the end of the process, watchdogs can decide to clear the path for a deal, or issue a veto.
Aside from the EU, the deal is set for regulatory scrutiny across the world, including the US, UK and Asia.
The battle for Warner Bros., known for films from Casablanca to Batman, is one of the biggest media deals in years and has the power to reshape the entertainment industry. Paramount has been aggressively pursuing Warner Bros. since September, while streaming leader Netflix emerged as a surprise suitor, entering the chase after Warner Bros. put itself up for sale in October.”
On Skydance extending the deadline for their bid tender & why their lawsuit and lobbying trips have priority over increasing the offer:
“On Tuesday, WBD’s wily CEO Zaslav not only touted that he’s getting all cash with Netflix’s $72 billion “winning” bid for his studio and streamer. He also tried to turn up the heat on PSKY CEO Ellison, moving up a shareholder vote on the Netflix deal to as early as February versus its previous slot in May, sources say.
“No more fooling around with lawsuits and other kinds of bulls–t,” one WBD insider familiar with Zaslav’s thinking said. “Either come to the table with more money or go home.”
But On The Money has also learned that Ellison – partnered with his dad, the tech tycoon Larry Ellison, and RedBird Capital’s Gerry Cardinale – isn’t going anywhere anytime soon.
In the next 24 hours he and his team plan to extend their Jan. 21 “tender deadline” giving them more time to convince shareholders to ditch the Netflix offer over theirs. They’re also pressing ahead with a lawsuit designed to show Zas held an unfair bidding process, skewing the deal toward Netflix because of his friendship with the streamer’s CEO Ted Sarandos.
It’s unclear for how long the deadline will be pushed off.
“(They’re) extending the deal in and there is no new money coming as of now,” is how one deal insider described the tense deal negotiations.
Meanwhile, the Ellisons and RedBird aren’t going for the kill shot just yet. They still believe their $30 a share offer is superior by the numbers and that the regulatory hurdles faced by Netflix are formidable.
Ellison and Cardinale, as On The Money goes to press, are on their private jets returning from a series of meetings with European and UK regulators who appear much more willing to approve their deal than the one proposed by Netflix.
“We could sit back and let this deal blow up in regulatory land and buy the company more cheaply,” said one PSKY executive.
Wall Street bankers doubt that will happen and believe PSKY has at least one more bid left in it before it walks.”
https://nypost.com/2026/01/21/media/paramount-skydance-to-extend-deadline-for-hostile-takeover-offer-for-warner-bros-discovery-but-isnt-raising-price-sources/
I honestly hope all this goes f*cked up and WB doesn’t mix with any other major