Paramount Is Convinced That WBD and Netflix Deal Would Fail

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Paramount is openly unhappy with how Warner Bros. Discovery is managing discussions with Netflix and Comcast about a possible agreement.

The studio vowed to strongly oppose any outcome it disagrees with. It also promised to publicly voice its concerns if either streaming service succeeds in acquiring Warner Bros.

Paramount believes it’s the strongest bidder for Warner Bros. Discovery (WBD), asserting a high likelihood of regulatory approval based on established legal principles. In a recent communication between legal teams, Paramount cautioned that a deal with Netflix or Comcast would likely face significant regulatory hurdles. This warning came with an updated offer, and a previous message had already criticized WBD for conducting an unfair sale process.

People familiar with the situation say Paramount’s communication with Warner Bros. Discovery could lead to serious legal issues. Experts predict that if Warner Bros. chooses a partner other than Paramount, they’ll likely face difficulties. The strongly worded letter reportedly attacks competitors, claiming that deals with Netflix or Comcast would harm Warner Bros.’ reputation.

It’s odd that Paramount seems so concerned about Netflix or Comcast gaining an advantage, but they also suggested in their letter that a deal between those companies is unlikely. Here’s the relevant part:

Both Netflix and Comcast face significant antitrust challenges that could cause lengthy and costly reviews, potentially preventing their respective deals from being finalized. Acquiring Paramount, however, is a simpler process with a much more certain outcome.

It’s unlikely a deal between Netflix and Warner Bros. Discovery will happen. While Netflix hasn’t faced major antitrust issues yet, buying WBD’s assets would almost certainly bring that scrutiny, and likely block the purchase.

The provided documents showed Netflix is already a major player in the streaming market, and that position would become even stronger if they were to buy HBO Max. However, Paramount believes that Netflix trying to expand to platforms like TikTok, YouTube, and Facebook would ultimately be unsuccessful.

The company cautioned that if Netflix and Warner Bros. merged, it would probably mean fewer movies released in cinemas. Paramount argued this would drive more people to streaming services and further damage already struggling movie theaters.

Although Netflix supposedly assured Warner Bros. it would honor existing agreements about movies being shown in theaters first, Paramount doesn’t trust them. Paramount believes that most Warner Bros. films will still skip theaters and go directly to streaming, despite any public statements to the contrary. Paramount characterized Netflix’s promise as temporary, self-serving, and designed to deflect potential legal challenges from regulators in the US and other countries.

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2025-12-05 02:50