The battle between Netflix and Paramount stands to reshape the entertainment industry regardless of who wins.<\/p>\n\n\n\n
With Warner Bros. films and TV shows, Netflix would wield tremendous new power over the content offered to online audiences. <\/p>\n\n\n\n
Paramount aims to marry two legacy Hollywood studios to counter the influence of Netflix, Walt Disney Co. and Amazon.com Inc.<\/p>\n\n\n\n
Both bids raise significant antitrust concerns, underscored by multibillion-dollar breakup fees the parties have offered, and both companies have been laying the groundwork to win over the White House.<\/p>\n\n\n\n
Warner Bros. will \u201ccarefully review and consider Paramount Skydance\u2019s offer,\u201d according to a statement Monday. <\/p>\n\n\n\n
The board isn\u2019t modifying its recommendation regarding the Netflix bid, which it approved last week.<\/p>\n\n\n\n
Warner Bros. said it aims to advise stockholders on the board\u2019s recommendation for the Paramount offer within 10 business days.<\/p>\n\n\n\n
Paramount, the parent of CBS, MTV and other media businesses, instigated the battle several months ago when it made multiple offers for Warner Bros. <\/p>\n\n\n\n
The company decided to put itself up for sale in October and received several rounds of bids, including from Netflix and Comcast Corp.<\/p>\n\n\n\n
Comcast said Monday it didn\u2019t see a \u201chigh likelihood\u201d of winning.<\/p>\n\n\n\n
Warner Bros. shares were up 4.4% to $27.23 at the close in New York on Monday, while Paramount gained 9%. Netflix lost 3.4% and is down 11% in the last four trading sessions. <\/p>\n\n\n\n
Paramount argues that its $30-a-share offer is greater than Netflix\u2019s, but comparing the two bids is complicated by Warner Bros.\u2019 plans to spin off cable networks such as CNN, TNT and the Discovery Channel.<\/p>\n\n\n\n
Under terms of the deal announced with Netflix on Dec. 5, Warner Bros. would divest those networks before the planned merger closes. <\/p>\n\n\n\n
The spinoff is worth $1 a share for Warner investors, Paramount Chief Operating Officer Andrew Gordon told investors on a conference call Monday. <\/p>\n\n\n\n
Bloomberg Intelligence analyst Geetha Ranganathan estimates the cable channels are worth $4 for every Warner Bros. share, making the Netflix bid higher.<\/p>\n\n\n\n
Paramount also said its offer gives Warner Bros. shareholders $18 billion more in cash than the Netflix bid. <\/p>\n\n\n\n
On a conference call with investors, Chief Operating Officer Andy Gordon said Paramount\u2019s tender offer will be open for 20 business days and could be extended. Warner Bros. has 10 days to respond, he said.<\/p>\n\n\n\n
\u201cWe\u2019re really here to finish what we started,\u201d Ellison said on CNBC.<\/p>\n\n\n\n
Both bidders are likely to face an extended review by regulators all over the globe, though Paramount argues its transaction is more likely to be approved because Netflix has a much larger share of the streaming TV market than Paramount+.<\/p>\n\n\n\n