This punt can bring Netflix’s 300M subscribers with HBO Max’s 128M subscribers under one umbrella

The bid war just got intriguing on the Homefront. Netflix has emerged at the forefront thanks to cash and a strong relationship with the CEOs.

Paramount Skydance, and Comcast had submitted their parts of the deals, but with different goals. Paramount is interested in acquiring the entire company, while Comcast and Netflix are interested in the streaming and studio segments, including HBO Max and the Warner Bros. library.

As per 247wallst, Netflix has tabled a whopping $70 billion bid for Warner’s core streaming and studio operations, while Comcast has retaliated with a second-round offer to merge Warner’s assets (digital & production) with its NBCUniversal unit, potentially valuing them at $27 to $28 per Warner share. Now, both of these players are intentionally avoiding Warner’s vast cable holdings.

But Paramount Skydance has another plan up its sleeve, and is pursuing the complete Warner Bros. Discovery by reviving its previously rejected $24-per-share offer backed by Apollo Global Management and the Ellison family. It looks interested in reminding everyone of its own recent merger aimed at forging a diversified media powerhouse.

But it seems the bid’s leaked details didn’t sit well with the investors, as Netflix plummeted 5.4% to $104, while Paramount tumbled 7.3% amid fears of shareholder dilution. Amid this commotion, Comcast managed a 1.5% gain.

If Netflix wins, it’ll not only reshape Hollywood but also highlight the risks the streamer and its investors face. Cumbersome debt could balloon interest costs, as antitrust lawsuits could siphon off capital for years to come. Big mergers neva go smoothly, and the hyped collaborations rarely work.

Amidst the turmoil, Netflix’s potential victory could redefine the streaming landscape completely, only if the execution ends well, while absorbing a colossus like Warner Bros.

^{Pic Credits: WB/IBT/GC/V}