Northwestern experts on Netflix/Paramount bidding war for acquisition of Warner Discovery

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Northwestern experts on Netflix/Paramount bidding war for acquisition of Warner Discovery

Paramount CEO David Ellison launches $108.4 billion "hostile" offer, countering Netflix's $82.7 billion offer

EVANSTON, Ill. --- Paramount Skydance announced today they have launched an all-cash "hostile bid" of $108.4 billion for the acquisition of Warner Bros. Discovery - a move that disrupts Netflix's bid of $82.7 billion.

David Ellison, CEO of Paramount Skydance, has attempted to appeal to the storied studio's shareholders and Hollywood, arguing its ownership would be better for the entertainment industry, as opposed to Netflix.

Both Ellison and Netflix's co-CEO Ted Sarandos have tried to appeal to President Donald Trump, with the latter reportedly meeting with him in the past few weeks. The merger would need the approval of the Federal Communications Commissions (FCC).

Northwestern experts are available to speak on antitrust law, business/media mergers and FCC/government approval

Quote from Professor of Instruction Rick Morris:

"There is nothing routine about this deal, from the battle over the intellectual property owned by Warner Brothers, to the impact of this on the rest of the industry, to the complex regulation that the President of the United States has said he may be involved with.

"Netflix would own what may become the world's largest library of film content in the world. They would also control a huge portion of the distribution chain adding the major streamer of HBO to its already industry-dominant streaming profile.

"The industry itself, in particular the unions, is also concerned as this would create a new dominant single source of entertainment and, therefore, jobs in Hollywood. The consumer might also be concerned, while it would seem that concentration of the intellectual property and streaming might lead to new discounts, it can also lead to pricing power that would directly affect the pocketbooks of millions if the prices were to go up."

Rick Morris is a professor of instruction at Northwestern's School of Communication. His expertise includes business and law of entertainment, media management, free speech and strategy. To reach Professor Morris, please reach out to Stephen Lewis at [email protected].

James Speta is Elizabeth Froehling Horner Professor of Law at Northwestern Pritzker School of Law. His expertise includes antitrust law, business associations, and telecommunications. To reach Professor Speta, please reach out to Shanice Harris at [email protected].

Mark McCareins is a clinical professor of business law at Northwestern's Kellogg School of Management. His expertise includes antitrust law and commercial litigation. To reach Professor McCareins, please reach out to Shanice Harris at [email protected].