Skip to main content

Paramount agrees to buy Warner Bros. Discovery, pays Netflix $2.8 billion for breakup

By

Paramount Skydance and Warner Bros. Discovery are officially merging. The studio paid Netflix the $2.8 billion termination fee it was owed for breaking its original deal to buy Warner Bros. earlier today, and the historic film studio has now formally accepted Paramount’s offer.

Along with the deal, which values Warner Bros. Discovery at $31 per share, Paramount is making several commitments to assuage the fears of regulators and the entertainment community. Those include a guarantee that the new company will produce 30 theatrical films annually, that theatrical releases will have a minimum 45-day window in theaters before they’re brought to video on demand (something Netflix ultimately also agreed to) and that deal itself will close by Q3 2026.

This turnaround in Paramount's fortunes has happened quickly. Warner Bros. Discovery announced that Paramount's offer was superior to Netflix's on Thursday, and not long after the streaming service said that it wouldn't provide a counter offer, effectively abandoning its previous agreement.

Ultimately, Netflix and Paramount were vying for different parts of Warner Bros. Disocvery. Netflix was primarily interested in Warner Bros. proper, while Paramount Skydance wanted the whole company, cable networks and all. Either deal would need to be approved by regulators, which is the hurdle Paramount and Warner Bros. Discovery face now. The general assumption has been that the close relationship Paramount CEO David Ellison and his billionaire father Larry Ellison have with the Trump administration would smooth over any issues, but the deal will receive scrutiny abroad and likely also at the state level, based on a recent post from California Attorney General Rob Bonta.

Paramount Skydance has proven its willingness to comply with President Donald Trump, but delays in closing the deal could be costly. The company is on the hook to pay Warner Bros. Discovery "a daily ticking fee equal to $0.25 per share per quarter beginning after September 30, 2026." The company also has to pay $7 billion to Warner Bros. Discovery if the deal is terminated for regulatory reasons. Netflix lost the battle for Warner Bros. Discovery, but getting a competitor to potentially overpay for the studio might be its own reward.

This article originally appeared on Engadget at https://ift.tt/I79lmvD

from Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics https://ift.tt/I79lmvD
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Instagram accidentally reinstated Pornhub’s banned account

By
After years of on-and-off temporary suspensions, Instagram permanently banned Pornhub’s account in September. Then, for a short period of time this weekend, the account was reinstated. By Tuesday, it was permanently banned again. “This was done in error,” an Instagram spokesperson told TechCrunch. “As we’ve said previously, we permanently disabled this Instagram account for repeatedly violating our policies.” Instagram’s content guidelines prohibit  nudity and sexual solicitation . A Pornhub spokesperson told TechCrunch, though, that they believe the adult streaming platform’s account did not violate any guidelines. Instagram has not commented on the exact reasoning for the ban, or which policies the account violated. It’s worrying from a moderation perspective if a permanently banned Instagram account can accidentally get switched back on. Pornhub told TechCrunch that its account even received a notice from Instagram, stating that its ban had been a mistake (that message itse...
Post a Comment
Read more

The Nintendo Switch has been the US’s bestselling console for 23 straight months

By
Photo by James Bareham / The Verge It’s been a good two years for the Nintendo Switch. According to Nintendo, the gaming tablet has been the bestselling console in the US for 23 straight months. And according to data from the NPD Group, it just had its best October ever, moving 735,926 units of both the Switch and Switch Lite in the US. The company says that represents a 136 percent increase compared to last year. To date, the Switch has sold 22.5 million units in the US, and last week Nintendo revealed that more than 68 million units have been sold globally . “We’re excited about our momentum,” says Nick Chavez, Nintendo of America’s SVP of sales and marketing. Chavez puts the company’s big October down to two main factors. One is a better supply of stock; this year in particular, it’s often been hard to find a Switch on store shelves. This has only been exacerbated by increased demand due to a combination of the pandemic and the breakout success of Animal Crossing: New Horizons . ...
Post a Comment
Read more

MVP versus EVP: Is it time to introduce ethics into the agile startup model?

By
Anand Rao Contributor Share on Twitter Anand Rao is global head of AI at PwC . The rocket ship trajectory of a startup is well known: Get an idea, build a team and slap together a minimum viable product (MVP) that you can get in front of users. However, today’s startups need to reconsider the MVP model as artificial intelligence (AI) and machine learning (ML) become ubiquitous in tech products and the market grows increasingly conscious of the ethical implications of AI augmenting or replacing humans in the decision-making process. An MVP allows you to collect critical feedback from your target market that then informs the minimum development required to launch a product — creating a powerful feedback loop that drives today’s customer-led business. This lean, agile model has been extremely successful over the past two decades — launching thousands of successful startups, some of which have grown into billion-dollar companies. However, building high-performing product...
Post a Comment
Read more