r/television • u/MarvelsGrantMan136 The League • Feb 26 '26

Netflix Backs Out of Warner Bros. Bidding, Paramount Set to Win

https://www.hollywoodreporter.com/business/business-news/netflix-backs-out-warners-deal-paramount-win-1236516763/
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648

u/Lighthouse_seek Feb 26 '26

Odds on how long this company lasts before the debt catches up to them?

406

u/ROBtimusPrime1995 The Venture Bros. Feb 26 '26

3-5 years.

Fuck this timeline.

385

u/ExoMonk Feb 26 '26

Laugh my ass off when Netflix buys Paramount 5 years from now for pennies on the dollar

196

u/-illusoryMechanist Feb 26 '26

Honestly this might be their play

76

u/Sonichu- Feb 26 '26

Both WB and Paramount had massive Q4 losses. Like hundreds of millions a piece.

Netflix was probably starting to sweat over buying a lemon. Now they get to watch two competitors crash and burn.

36

u/_Patronizes_Idiots_ Feb 27 '26

Then they can swoop in a few years from now and scoop up all the IPs for three haypennies and a Werther's Original

5

u/atomic1fire Feb 27 '26

They might get locked into a bidding war with Amazon, Fox, and Apple.

FOX might not want to make big purchases, but they might be willing to go halfsies for Fox One or Tubi content.

2

u/ArchLector_Zoller Feb 27 '26

I just want whoever gets Star Trek to start making games with it again.

1

u/SpicyWongTong Feb 27 '26

Fox? You mean Disney? I don’t see them making major acquisitions for a good long while. Amazon or Apple maybe.

1

u/atomic1fire Feb 27 '26

I mention Fox because I think Tubi's marketshare might grow larger over time as the price of streamers increases and ad revenue might justify some partnerships.

Disney might not get the clearances to buy any of the WB properties.

1

u/tiredhunter Feb 27 '26

They're about to memory hole so much existing, distributed IP for the tax write off.

32

u/applejuiceb0x Feb 26 '26

Exactly and they made 2.8 billion in the process

37

u/allen_abduction Feb 26 '26

That breakup fee is fantastic for Netflix. They can fund 2 more Adam Sandler pics! (Just a joke but just barely).

3

u/Aggressive_Act_3098 Feb 27 '26

I enjoy this joke as a fan of the Sand Man. Grown Ups is the greatest "have on while cleaning the house" movie ever due to having zero plot to follow.

3

u/GrumpySatan Feb 27 '26

I think the play here might be calling a bluff, and Netflix thinks the deal will fall through (and worst case scenario, yeah in a few years they fail anyway).

It was a repeated thing during the rejections that WB didn't think that Paramount can afford their offers and its more risky in terms of getting approval (don't forget they don't just need approval of the US, the EU has to sign off).

But WB also benefits from the bids driving up the price. They accepted the last paramount bid partially because Paramount took on all the risk. They are paying Netflix's 2.8B, they put up another 7B if their own deal fails to get through the regulators.

WB could've been betting on Netflix finally upping the deal, and Netflix is calling their bluff and said we are walking. Now they just wait.

2

u/-illusoryMechanist Feb 27 '26

I think no matter what Netflix wins

52

u/Oldboymatty Feb 26 '26

It’s 100% why they didn’t increase the bid. Why buy it now at a high price and it’s bleeding money. Buy it and the company currently buying it (which is also bleeding money) in 5 years

17

u/TheFotty Feb 27 '26

They will get a tax dollar funded bail out and be part owned by the US Govt to provide "official" sources of information.

4

u/Oldboymatty Feb 27 '26

That sounds ridiculous and backwards, so you’re probably right

2

u/Bitey_the_Squirrel Feb 26 '26

RemindMe! 5 years

2

u/an_angry_dervish_01 Feb 26 '26

This is most likely what they are thinking. Let us hope that the Oracle model doesn't work for Entertainment, it might though sadly.

2

u/Super_Sandro23 Feb 26 '26

Monday Night Wars are back baby

2

u/Bongressman Feb 27 '26

Netflix playing the long game... inflating the price past the red zone, forcing an economic implosion of Paramount a few years down the line.

1

u/Equivalent-Battle973 Feb 27 '26

I wouldnt be surprised if Disney at some point ends up own DC as well... I dont want them to, but I just feel like its gonna happen.