Paramount promised to release more than 30 films theatrically as the company launched its hostile takeover bid for Warner Bros. Discovery. In a call with press and investors, the company said it will also honor “healthy traditional windows.”
It’s a clear swipe at Netflix, which outmaneuvered Paramount to reach a binding agreement to acquire Warner Bros. and HBO for $82.7 billion. Netflix Co-CEO Ted Sarandos has been dismissive of the theatrical experience, sparking fears among Hollywood’s creative community that by overtaking one of the major film studios, Netflix would hurt cinemas by releasing fewer films. Sarandos did say that Netflix will Warner Bros.’s current theatrical commitments and noted that the streamer releases certain of its films in theaters (though that is mostly to qualify for awards). But he did hint that the amount of time that films are exclusively in cinemas will “evolve,” positioning that as better for audiences.
“I wouldn’t look at this as a change in approach for Netflix movies or for Warner movies,” Sarandos said in a conference call on Friday. “I think, over time, the windows will evolve to be much more consumer friendly, to be able to meet the audience where they are quicker…I’d say right now, you should count on everything that is planned on going to the theater through Warner Bros. will continue to go to the theaters through Warner Bros., and Netflix movies will take the same strides they have, which is, some of them do have a short run in the theater beforehand. But our primary goal is to bring first-run movies to our members, because that’s what they’re looking for.”
On Monday, Paramount Skydance announced it has commenced an all-cash tender offer to acquire all of the outstanding shares of WBD for $30 per share — the same terms it offered in a Dec. 4 bid submitted to the Warner Bros. Discovery’s board. Paramount’s proposed transaction is for the entirety of Warner Bros. Discovery, including the TV business with CNN, TBS, TNT and other networks, whereas Netflix’s bid is for certain parts of the company and would allow most of Warner Bros. Discovery’s cable assets to be spun off into a separate entity.
According to Paramount, its all-cash offer equates to an enterprise value of $108.4 billion (including assumption of debt). In contrast, the Netflix proposal is valued at $27.75/share and is a mix of cash ($23.25) and stock ($4.50).
