Netflix, Paramount battling for more than just Warner Bros

They present rival visions for the future of entertainment.

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Paramount boss David Ellison, who has produced films such as Top Gun: Maverick (starring Tom Cruise, above), said this week that a combined Paramount-Warner would release more than 30 movies a year in cinemas. Netflix, which seems potential to squeeze more engagement out of first-class titles, can be expected to get more out of Warner's gold-plated intellectual property such as the Game of Thrones series. A combined Paramount and Warner would own CNN, which could be contentious if the Warner asset is sold to Paramount whose bid is backed by Gulf investors and US President Donald Trump's son-in-law Jared Kushner.

(PHOTO: AFP PHOTO: HBO PHOTO: AFP)

The credits were ready to roll. Netflix, the world’s biggest streaming company, had announced on Dec 5 that it was to acquire most of Warner Bros Discovery, one of the biggest names in old-fashioned movie-making, in a deal valued at US$83 billion (S$107.5 billion).

But on Dec 8, Paramount a much smaller rival - pressed pause on the transaction. Sidestepping Warner’s management, it appealed directly to shareholders to accept its alternative offer of US$108 billion for the whole company, promising a deal that is “superior to Netflix in every dimension”.

The Looney-Tunes sums could yet grow even higher: Paramount’s owners, the Ellison family, have made clear they are willing to shell out more if necessary; Netflix, whose market value is over US$400 billion, can also afford to bid more if it wants to.

But the main difference between the bidders is not the offer price. Netflix and Paramount see different things in their target. The question of who gets Warner Bros will shape the future of Hollywood, and of entertainment more widely.