I’m with James Cameron when he says that Netflix acquiring Warner Bros. would be a disaster, and that their promise to keep theatrical is “sucker bait.”
Now, for some bad news.
After weeks of denying they were interested in WB assets, there’s no doubting anymore that Netflix is very serious about acquiring the studio’s film and TV divisions. To the point where now, according to Bloomberg, they’ve just put on the table a “mostly cash offer” bid, via an arranged mega-loan.
Furthermore, Fox Business News’ Charles Gasparino is reporting that the WB board has “really warmed” to Netflix’s offer, for a lot of reasons, including the chemistry between WB chief David Zaslav and Netflix CEO Ted Sarandos. The only worry? The regulatory hurdles, including a 2-year battle through the Trump administration’s DOJ antitrust.
Trump obviously wants Paramount/Skydance to nab Warner Bros., and they did recently bid high for all assets, with a reported $71 billion set on the table. Does Zaslav really want to deal with Trump’s wrath in accepting Netflix’s offer?
If Netflix ever gained control of Warner Bros., the outcome for the film industry could be bleak. The only hopeful scenario would be Netflix turning Warner Bros. into a dedicated theatrical-release division — and that’s simply not something I see happening. Netflix’s long-standing aim has been to destroy traditional theatrical distribution, not strengthen it. A streaming-first model is probably in order.
I’m still in denial about this nightmare becoming reality — but, honestly, it has become a possibility. Paramount has already seen three bids rejected, with them awaiting WB’s response to their $71 billion offer, which, it should be noted, is not a cash offer like what Netflix is reported to have put together.
There could even be a deal finalized before Christmas. The offers are binding, meaning the board can move swiftly and approve an agreement if it meets their objectives, according to one of Bloomberg’s sources.