Last week, Warner Bros. Discovery finally said publicly what everyone has been talking about for weeks: The media company is up for sale.<\/p>\n
Although the news was hardly a surprise \u2014 Warner has been unofficially in play for some two months \u2014 the prospect of another blockbuster merger has rattled an entertainment industry that has seen a slow but steady drumbeat of consolidation in recent years. <\/p>\n
Hollywood insiders still lament the effect of Walt Disney Co.\u2019s acquisition of 21st Century Fox\u2019s entertainment assets and what that has meant for theatrical output and the shrinking buyer\u2019s market. Warner itself is the result of multiple sales and mergers.<\/p>\n
More recently, of course, was the takeover of Paramount by tech scion David Ellison\u2019s Skydance Media, a deal which only just closed in August.<\/p>\n
The new owners wasted no time getting bigger. Soon after scooping up Paramount, the Ellison-backed media company went on a buying spree, locking down sports media rights and iconic cartoons like \u201cSouth Park\u201d and luring filmmakers away from competitors. <\/p>\n
Now, its sights are on a much bigger target \u2014 Warner Bros., the iconic studio behind classics such as \u201cCasablanca,\u201d \u201cBatman\u201d and the \u201cHarry Potter\u201d movies.<\/p>\n
As my colleague Meg James has reported, the expanding media company has already submitted multiple bids for its rival,<\/a> but its offers have been rebuffed as too low. The Ellisons are interested in buying the entire operation, including its cable channels like HGTV, celebrity.land, TNT and Food Network.<\/p>\n That\u2019s important, given that Warner is in the process of splitting itself into two companies and spinning off its basic cable channels and international operations. That planned separation is expected to finish in mid-2026, Warner said in its statement last week. <\/p>\n \u201cOur decision to initiate this review underscores the Board\u2019s commitment to considering all opportunities to determine the best value for our shareholders,\u201d Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery board of directors, said in the statement. \u201cWe continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.\u201d<\/p>\n Precisely what course of action the board will decide on, and whether it is in the best interest of Hollywood, remains murky and clouded by the fact that Warner Bros. Discovery Chief Executive David Zaslav himself seems eager to stay in charge. <\/p>\n Warner\u2019s statement leaves open several scenarios.<\/p>\n Zaslav suggested the company had more than one suitor, saying in the statement that Warner has received \u201cinterest from multiple parties,\u201d which triggered the review of \u201cstrategic alternatives to identify the best path forward to unlock the full value of our assets.\u201d<\/p>\n Cable company Comcast, which owns NBCUniversal, plans to weigh its options for the company, but no bid has yet emerged.<\/p>\n Streaming giant Netflix, which is rumored to be interested, seemed to downplay such speculation in its earnings call last week. In response to an analyst question, co-Chief Executive Ted Sarandos said the company looks at all potential opportunities for mergers and acquisitions, but that Netflix has been \u201cvery clear in the past that we have no interest in owning legacy media networks.\u201d<\/p>\n Still, those remarks don\u2019t completely shut the door on Warner\u2019s studio and streaming service.<\/p>\n Many thought a Paramount-Warner marriage was a foregone conclusion when news broke earlier this month that the Ellisons made an initial bid of nearly $20 a share,<\/a> which was later rejected by the Warner Bros. Discovery board. <\/p>\n After all, David Ellison\u2019s father, Oracle Corp. co-founder and chairman Larry Ellison, who is the largest shareholder of Paramount, is worth $341 billion dollars, according to Forbes<\/a>.<\/p>\n TD Cowen media analyst Doug Creutz wrote in a note to clients that a transaction with Paramount remains \u201creasonably likely\u201d and expressed skepticism that other \u201cmore attractive bidders\u201d would emerge.<\/p>\n Meanwhile, any potential deal is facing public pushback from the Writers Guild of America, which recently said combining Warner Bros. with Paramount or another major studio or streamer would \u201cbe a disaster for writers, for consumers and for competition.\u201d <\/p>\n The union said it would work with regulators to block such a merger.<\/p>\n Adding to the uncertainty is the possibility that the Warner Bros. Discovery split could still happen, regardless of bids, if the board deems those offers not in the best interest of shareholders.<\/p>\n So about the only thing that\u2019s clear at this moment is that there won\u2019t be a resolution anytime soon.<\/p>\n Netflix\u2019s third-quarter revenue jumped 17% to $11.5 billion, a feat powered by the success of the \u201cKPop Demon Hunters\u201d movie, the company reported last week<\/a>.<\/p>\n As my colleague Wendy Lee reported, the animated movie hit has now birthed Netflix a licensing deal with toymakers Hasbro Inc. and Mattel Inc. for themed dolls, action figures, youth electronics and more. Talk about golden.<\/p>\nStuff We Wrote<\/h2>\n
Film shoots<\/h2>\n
Number of the week<\/h2>\n
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<\/picture> <\/figure>\n<\/p><\/div>\nFinally …<\/h2>\n