Studio auction could recast industry

Paramount, Comcast and Netflix all have different interests in giant Warner Bros.

- By MEG JAMES

MYUNG J. CHUN Los Angeles Times NETFLIX'S interest in Warner Bros. may seem unusual. But those franchises ...

Now, the real jockeying begins for the future of Warner Bros. Discovery.

Paramount, Comcast and Netflix each submitted proposals for all or parts of the storied media giant by Thursday’s deadline, according to people familiar with the process but not authorized to speak publicly. The nonbinding bids mark the completion of the auction’s first phase, accelerating the potential sale of some of the best-known brands in entertainment, including HBO, CNN and Warner Bros. film and television studios.

Warner Bros. Discovery Chief Executive David Zaslav and the company’s board unanimously rejected three earlier overtures from Paramount's David Ellison, including a largely cash offer of $23.50 a share, deeming it too low. Thursday's entry of new bidders could boost the value of the struggling media company to more than $60 billion.

Analysts say Paramount should have an edge because its bid is backed by David Ellison’s father, Larry, who is among the top five billionaires in the world. But it’s not a sure bet that Paramount will come away with the prize.

“I don’t know that I’m calling a horse,” Julie Clark, senior vice president of media and entertainment at information firm TransUnion, said Wednesday. “They all have a lot to gain— and a lot to lose.”

Warner's board wants to pick a preferred partner by year’s end, in part to determine whether it should continue working on its previously announced plan to carve the company into two parts.

Should Paramount prevail in its bid to buy the entire company, Warner Bros.

Discovery would abandon its efforts to create a standalone streaming and studios entity called Warner Bros. and a second publicly traded firm, Discovery Global, comprised of CNN, HGTV, TLC and other basic cable channels.