Warner Bros reopens takeover talks with Paramount after receiving waiver from Netflix

Netflix is granting Warner Bros. Discovery a seven-day waiver that would allow it to reengage in talks with Paramount Skydance

Read the full article on KETV 7

SATURDAY. OLGA. THANK YOU. STREAMING GIANT NETFLIX IS SET TO BUY WARNER BROS. FILM AND STREAMING ASSETS, INCLUDING HBO. JULIAN PARAS JOINS US NOW WITH THE LOCAL IMPACT. THE BLOCKBUSTER DEAL COULD HAVE. YEAH, THAT’S RIGHT RON. SO NETFLIX ALREADY HAS A PRETTY BIG FOOTPRINT HERE IN ALBUQUERQUE, IN THE SOUTHEAST PART OF TOWN, WITH THE STUDIOS THAT WE HAVE BEHIND US. AND EARLIER TODAY WE SPOKE WITH LOCAL FILMMAKERS. THEY SAY THIS IS A HUGE MOVE FOR THE STATE, BUT THEY ARE WORRIED AND CONCERNED ABOUT WHAT THIS MEANS FOR THE MOVIEGOING EXPERIENCE IN THE FUTURE. I THINK NETFLIX IS DOING THIS TO ELIMINATE COMPETITION. ROSS MARKS IS A FILMMAKER AND PROFESSOR AT NEW MEXICO STATE UNIVERSITY. HE SAYS THIS MOVE BY NETFLIX MEANS SUBSCRIBERS COULD SEE A MUCH LARGER LIBRARY. THIS DEAL FOR NETFLIX IS A HUGE PURCHASE OF $80 BILLION IN TOTAL ENTERPRISE VALUE. WHAT THIS MEANS IS NETFLIX NOW HAS ACCESS TO THINGS LIKE HBO MAX AND ALSO HAS CONTROL OVER FRANCHISES LIKE GAME OF THRONES AND THE DC UNIVERSE. THE DC SERIES FROM WARNER BROTHERS, MOVIES LIKE CENTERS AND WEAPONS THAT HAVE BEEN BIG HITS THIS YEAR, YOU KNOW, ARE THOSE FILMS NOW GOING TO BE NETFLIX RELEASES? THE BIGGER CONCERN, I THINK, FOR AUDIENCES FOR THE FILMGOER IS, IS THIS GOING TO KILL THE THEATRICAL EXPERIENCE? ROSS SAYS THIS COULD ALSO HAVE AN IMPACT FOR MANY MOVIEGOERS, WITH NETFLIX BEING A STREAMING OPTION. THE FILMMAKER SAYS THERE MAY NOT BE AS MANY THEATRICAL RELEASES FOR MOVIES PRODUCED BY COMPANIES NETFLIX OWNS. I REALLY BELIEVE STRONGLY IN THE THEATRICAL EXPERIENCE. I BELIEVE MOVIES ARE MEANT TO BE SEEN ON THE BIG SCREEN WITH SURROUND SOUND, WITH AN AUDIENCE THAT COMMUNAL EXPERIENCE. BUT, HE SAYS, THERE IS A SILVER LINING. THIS INVESTMENT MEANS MORE FILMS AND TV PRODUCTIONS COULD BE COMING TO THE STATE. THERE’S GOING TO BE A LOT MORE JOBS. SPEND INTO THE STATE, AND WE’RE GOING TO SEE NETFLIX GROW AND EXPAND THEIR PRODUCTION IN NEW MEXICO SIGNIFICANTLY. AND TO ADD TO THAT, MARKS HAS SAID THAT NETFLIX HAS ALREADY INVESTED MORE THAN $1 BILLION BECAUSE OF STUDIOS LIKE THIS ONE, AND HE BELIEVES THERE COULD BE MORE INVESTMENT IN THE FUT

Netflix is granting Warner Bros. Discovery a seven-day waiver allowing the studio to reopen takeover talks with Paramount Skydance.Warner Bros. said in a regulatory filing Tuesday that the waiver will allow it to discuss unresolved “deficiencies” in Paramount’s previous offers.Warner Bros. now has until Feb. 23 to negotiate a possible transaction with Paramount Skydance.Previously, Warner’s leadership consistently has backed the offer from Netflix. In December, Netflix agreed to buy Warner’s studio and streaming business for $72 billion — now in an all-cash transaction that the companies have said will speed up the path to a shareholder vote by April. Including debt, the enterprise value of the deal is about $83 billion, or $27.75 per share.Unlike Netflix, Paramount wants to acquire Warner’s entire company — including networks like CNN and Discovery — and went straight to shareholders with all cash, $77.9 billion offer in December.

NEW YORK —

Netflix is granting Warner Bros. Discovery a seven-day waiver allowing the studio to reopen takeover talks with Paramount Skydance.

Warner Bros. said in a regulatory filing Tuesday that the waiver will allow it to discuss unresolved “deficiencies” in Paramount’s previous offers.

Warner Bros. now has until Feb. 23 to negotiate a possible transaction with Paramount Skydance.

Previously, Warner’s leadership consistently has backed the offer from Netflix. In December, Netflix agreed to buy Warner’s studio and streaming business for $72 billion — now in an all-cash transaction that the companies have said will speed up the path to a shareholder vote by April. Including debt, the enterprise value of the deal is about $83 billion, or $27.75 per share.

Unlike Netflix, Paramount wants to acquire Warner’s entire company — including networks like CNN and Discovery — and went straight to shareholders with all cash, $77.9 billion offer in December.