Concerns as Netflix nears deal to acquire Warner Bros.

James Cameron, director of "Titanic," "Terminator" and "Avatar," has warned that selling Warner Bros. to Netflix would cause a "catastrophic loss of long-term value" for the entertainment industry.

Warner Bros Discovery has entered exclusive talks to sell its streaming business and Hollywood film studio to Netflix, a move that would dramatically change the current film and television landscape.

Netflix is ​​competing with Paramount Skydance and Comcast, which owns assets including Universal Studios and Sky, to buy the owner of Hollywood studio Warner Bros - one of the world's biggest film and TV production hubs - HBO and HBO Max.

Netflix is ​​offering a $5 billion settlement fee if the deal is not approved by US regulators, according to Bloomberg, which first reported the exclusive talks.

Warner Brothers Discover shares are currently trading at around $24, giving it a market value of around $60 billion. Netflix is ​​said to have offered between $28 and $30 a share, suggesting its bid could be as high as $70 billion to $75 billion.

Analysts warned that the deal could raise competition concerns as it would result in the combination of two of the largest streaming services in the United States.

The traditional TV business is in major contraction as viewers shift to streaming services, an area dominated by Netflix.

In its most recent quarter, Warner Bros.' cable network division reported a 23% drop in revenue as customers canceled subscriptions and advertisers moved to other platforms.

Netflix has pledged to continue allowing Warner Bros., which owns brands like "Harry Potter" and "Batman," to release its films widely.

Before any deal can be finalized, Warner Bros. Discovery will have to complete plans to spin off its cable channels, which include CNN, TBS and TNT.

The deal would result in Netflix becoming the owner of HBO, the producer of hit shows like "Succession," "The White Lotus," "The Sopranos" and "Game of Thrones," as well as a massive television archive that includes classics like "Friends," which is about to leave Netflix.

Warner Bros. officially put itself up for sale in October after receiving interest from multiple parties.

Earlier this week, James Cameron, director of "Titanic" and the "Terminator" and "Avatar" franchises, warned that selling to Netflix would cause a "catastrophic loss of long-term value" for the entertainment industry.

Paramount, run by David Ellison and financed by his father, billionaire Larry Ellison, founder of Oracle, was considered an early frontrunner.

Paramount, which owns assets including Channel 5 in the UK, had also offered a $5 billion settlement fee if the deal was agreed but was not approved by regulators.

Earlier this week, Paramount argued in a letter to Warner Bros that its offer would likely be approved by the regulator.

Paramount accused Warner Bros. of running an unfair bidding process that favored Netflix. In a letter from its litigation attorney, the company called the process "problematic."

Warner Bros, Netflix, Comcast and Paramount declined to comment on this information./.

(Vietnam+)

Source: https://www.vietnamplus.vn/nhung-lo-ngai-khi-netflix-gan-dat-thoa-thuan-mua-lai-warner-bros-post1081273.vnp