Europe Faces Netflix-Warner Bros. Deal Opposition Battle
Opposition continues to grow against Netflix’s $83 billion acquisition of Warner Bros. Discovery, particularly from industry leaders in Europe. Paramount Skydance CEO David Ellison recently engaged with key figures in the European film sector and met with French President Emmanuel Macron in Paris. Meanwhile, other executives from Paramount have been active in the UK and Germany, lobbying regulators to challenge Netflix’s offer.
Trade Groups Join the Fray
Several trade groups representing AMC and other European movie theaters have also voiced their concerns. They are actively lobbying EU regulators to block the acquisition. These moves occur amid Netflix’s ongoing efforts to solidify its position in the United States.
Recent Developments in the U.S.
A Delaware judge recently dismissed Paramount’s attempt to expedite its lawsuit against Warner Bros. Discovery. As of now, Paramount’s offer to acquire shares at $30 each expires on January 21. Warner Bros. has argued that Paramount is the one dictating the expiration.
Netflix Clarifies Theatrical Release Plans
In an effort to allay fears from theater owners about potential changes to release windows, Netflix co-CEO Ted Sarandos reassured stakeholders. He stated that Warner Bros. would continue to operate its theatrical business as it currently does, maintaining a 45-day release window. “This deal will provide us a strong theatrical distribution engine that generates significant revenue,” Sarandos noted in an interview with The New York Times.
Market Reactions
The statements from Sarandos led to a notable rise in the shares of AMC and Imax. The market is reacting to a shift in sentiments, as reports surfaced indicating that Netflix might enhance its bid for Warner Bros. Discovery and potentially offer an all-cash deal.
Changing Odds in the Acquisition Battle
Event contracts suggest a changing landscape in this acquisition battle. As of Friday morning, the odds for Paramount to gain control of Warner Bros. Discovery dropped to 19%. This is a significant decrease from 31% the previous day. These probabilities are provided through platforms like Robinhood Derivatives, LLC, and are sourced from KalshiEx LLC or ForecastEx LLC.
The tension surrounding the Netflix-Warner Bros. deal highlights the competition and complexities within the European film market. As negotiations and lobbying efforts continue, the future of this acquisition remains uncertain.
