Warner Bros., Netflix, and Paramount have all been making dramatic headlines recently, though it’s not for the content of their shows or movies. Netflix was on top of the bidding war for Warner Bros. Discovery, which has heavy implications for the shift to streaming platforms. However, it was not a cut-and-dry success, as entertainment company Paramount Skydance has since launched a hostile bid. The conflict has been compared to the series “Succession,” with competitions for control, media conglomerates, and even the involvement of family fortunes. The entire conflict ties to larger issues: the death of the movie theater, monopolies within the entertainment industry, as well as censorship, with uncanny ties to President Trump throughout.
Studio consolidation alone is a divisive issue for studio executives and viewers alike. When entertainment companies merge, consumers are often faced with higher subscription fees and a loss of diversity and quality of content as platforms that were once unique from one another. Warner Bros. Discovery has an immense presence in the industry; the company is a titan, being known for franchises like DC, Harry Potter, and Lord of the Rings; classic cartoons, with Looney Toons and Cartoon Network; as well as the Discovery Channel, CNN, HBO, and all Warner Bros. Pictures.
The anticipated merger essentially worked like an auction, where Netflix initially won with a $72 billion bid. Paramount lost, having previously lowballed for Warner Bros. However, the company has now gone straight to Warner Bros.’ shareholders in what is known as a hostile bid, an acquisition offer in which a rejected bidder appeals to the target company’s shareholders in order to bypass management so they can buy a controlling stake. And their success isn’t out of the realm of possibility. Warner Bros. Discovery board has put out a statement stating that they are considering this deal.
This money would come from the Ellison family. David Ellison is the current CEO of Paramount Skydance who owns CBS, MTV, and more. The wealth doesn’t end with Ellison Jr, as his father Larry Ellison has amassed an estimated fortune of $250 billion through his large stakes in tech-titan Oracle. If the merger with Paramount Skydance is to take place, the Ellisons promise compliance with President Trump, specifically surrounding the historically liberal news channel CNN, which is owned by Warner Bros. Discovery. Furthermore, the new hostile bid put out by Paramount Skydance was initially being backed by the investment company Affinity Partners, which is owned by Trump’s son-in-law, Jared Kushner. Their backing has since been withdrawn, a large blow to Paramount Skydance’s bid.
Beneath this ownership drama lies concerns for everyone else. For at-home media consumers, the merger could mean a decline in the quality of the shows and movies being released, while the worsening straight-to-streaming service movement means a great detriment to cinemas everywhere. Berkeley is no stranger to this shift to subscription platforms. In the past five years, the city has lost all but one of its movie theatres, three closing within a three-block-radius of Berkeley High School.
It’s seemingly a lose-lose situation, as at the end of the day, the merger is going to happen. The only question is which media company comes out on top.