EU antitrust regulators are expected to simultaneously review the competing bids from Netflix and Paramount Global for Warner Bros. Discovery, marking an unusual head-to-head competition review.
The acquisition battle places major entertainment assets—including DC Comics, iconic franchises ranging from "Friends" to "Batman," and the HBO Max streaming service—at the center of a high-stakes contest, a combination that could reshape the power dynamics of Hollywood.
It is understood that the likelihood of parallel reviews by the EU is high, as the timelines for advancing both proposals are similar, and both bidders have already held preliminary discussions with the EU's merger regulators regarding their plans.
Concurrent reviews would grant the EU increased influence over the future of Warner Bros. Regulators could shape the competition by swiftly approving one bidder while subjecting the other to a more prolonged investigation, or by requiring concessions from the bidders, potentially allowing a frontrunner to emerge.
Netflix revised its $82.7 billion acquisition offer on Tuesday, changing it to an all-cash bid in an effort to accelerate the deal's completion and provide greater financial certainty to investors concerned about its previous stock-and-cash proposal.
The new all-cash offer of $27.75 per share has received unanimous support from the Warner Bros. board of directors.
Any potential deal is likely to face extensive antitrust scrutiny from regulators including the US Department of Justice, the EU, and the UK.
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