If the deal with Netflix is successful, Hollywood is likely to enter a period of deep restructuring.
On December 5th, Netflix reached an agreement with Warner Bros. Discovery to acquire its studio and streaming business for $82 billion at market valuation. Just three days later, Paramount unexpectedly launched a larger takeover bid to Warner's shareholders for $108.4 billion. If the Netflix deal goes through, Hollywood is likely to enter a period of profound restructuring, where streaming – instead of theaters or traditional television – will become central to the entertainment ecosystem.
Warner Bros. Discovery became a coveted prize between Paramount and Netflix because it owns two strategic assets in the global media industry.
Firstly, there is the media ecosystem, which includes television channels like HBO and CNN, cable networks such as TNT and TBS, the biggest Hollywood studios, and a global distribution network.
Secondly, there is the intellectual property (IP) ecosystem – considered an irreplaceable treasure, such as superhero series like Superman and Batman; owning the rights to Harry Potter and Game of Thrones... along with hundreds of classic films in Hollywood history.
On the buyer's side, Paramount owns Star Trek, the Mission Impossible franchise, and several television channels, but on a smaller scale than Warner Bros. Netflix, on the other hand, is a streaming service – strong in streaming technology – but lacking its own intellectual property assets. Therefore, Warner Bros. is the perfect piece to help Netflix create a sustainable original content ecosystem. Acquiring Warner Bros. is a survival decision for Paramount.
With its latest proposal on December 8th, Paramount is not just looking to acquire a portion, but the entire Warner Bros. Discovery franchise, including its cable television assets – something Netflix has overlooked.
Professor Matt Mcallister, a film production and media studies researcher at Penn State, said: "And now you have a war over Warner Bros. Discovery, between Netflix, which is a friendly merger, and Paramount's Skydance, which appears to be a hostile takeover attempt."
A friendly merger is one where the boards of directors of both companies have agreed, and they have reached an agreement on the terms. A hostile takeover, on the other hand, is when one company comes along and tries to acquire a large number of shares."
Dr. Yannis Tzioumakis - Film and Media Industry, University of Liverpool , UK, shared: "I've looked at some of the comments fans have made about the announcement of this deal and many of them are happy because they think that if HBO and Netflix merge, there will be only one instead of two subscription fees. On the other hand, there are many people who want more variety between HBO and Netflix programming."
Both sides are launching aggressive media campaigns. According to analysts, this battle will be protracted, as Paramount will utilize every channel from shareholders to politicians to obstruct Netflix.
Source: https://vtv.vn/cuoc-chien-quyet-liet-nham-thau-tom-warner-bros-discovery-100251211072330852.htm
