WBD Acquisition Thread

[themidnightlore]

So there's the Hearst A+E Networks-core divorce at the end (and in that case is an half divorce, considering that A+E Global Media is still a thing).
But without the EU asking for it?

 

[lowell]

So there's the Hearst A+E Networks-core divorce at the end (and in that case is an half divorce, considering that A+E Global Media is still a thing).
But without the EU asking for it?

To me, this SkyShowtime exit is seemingly looking like that Paramount+ will have to resume its international expansion to increase its profitability.

The decision to finally integrate the niche BET+ service pools together its U.S. subscribers but you could only do so much growth within that flagship market that you would need to expand to other countries.

 

[themidnightlore]

To me, this SkyShowtime exit is seemingly looking like that Paramount+ will have to resume its international expansion to increase its profitability.

The decision to finally integrate the niche BET+ service pools together its U.S. subscribers but you could only do so much growth within that flagship market that you would need to expand to other countries.

For NBCU, maybe they can use the dying SkyShowtime as a trampoline for launch Universal+ instead. While Paramount will really have to restart giving P+ around...

 

[lowell]

For NBCU, maybe they can use the dying SkyShowtime as a trampoline for launch Universal+ instead. While Paramount will really have to restart giving P+ around...

Yup, I'd even call it Universal Access as a more unique name instead of everyone trying to use Plus in their branding.

But Peacock & Hayu will have to combine before that and that's still not adequate for an international rollout. It's not like Comcast can't scoop up Lionsgate, Starz, & AMC Networks to give the Universal Access platform a boost.

 

[zakawer2]

If Paramount exits SkyShowtime, will this mean that Paramount+ will actually return to Denmark, Sweden, Norway and Finland?

In the Nordic countries not named Iceland, Paramount+ was shut down and replaced with SkyShowtime in 2022, only less than two years after its 2021 launch. All Paramount+ subscribers in DK/SE/NO/FI were migrated to SkyShowtime.

 

[lowell]

If Paramount exits SkyShowtime, will this mean that Paramount+ will actually return to Denmark, Sweden, Norway and Finland?

In the Nordic countries not named Iceland, Paramount+ was shut down and replaced with SkyShowtime in 2022, only less than two years after its 2021 launch. All Paramount+ subscribers in DK/SE/NO/FI were migrated to SkyShowtime.

This signals an actual return to those countries and a Paramount+ rollout to any other European territories that doesn't currently have it and definitely some African countries & Asia.

 

[PF9]

It's not like Comcast can't scoop up Lionsgate, Starz, & AMC Networks to give the Universal Access platform a boost.

Comcast won't go for the latter two as they have decreased their involvement in linear cable networks with the Versant spin-off. AMC could be useful for Sony though to expand their presence in linear TV, and Lionsgate should go to Sony as well.

But back on topic, SkyShowtime being merged into an international rollout of Peacock is realistic. The merged PSKY/WBD would use the international versions of HBOmax as the basis for the international version of the combined Paramount+/HBOmax service. Stateside, this merged service would supersede P+ as an offering for Walmart+ subscribers (I use my mother's Walmart+ and through that I use P+, though I'm limited to using it on my computer because it is the only way I can watch it with an ad-blocker as Walmart+ subscribers don't get the ad-free plan automatically.).

 

[lowell]

There’s also this article from Puck regarding CNN, lowell. Care to explain?

https://archive.ph/HbS3P

It’s the same article I posted.

Comcast won't go for the latter two as they have decreased their involvement in linear cable networks with the Versant spin-off. AMC could be useful for Sony though to expand their presence in linear TV, and Lionsgate should go to Sony as well.

But back on topic, SkyShowtime being merged into an international rollout of Peacock is realistic. The merged PSKY/WBD would use the international versions of HBOmax as the basis for the international version of the combined Paramount+/HBOmax service. Stateside, this merged service would supersede P+ as an offering for Walmart+ subscribers (I use my mother's Walmart+ and through that I use P+, though I'm limited to using it on my computer because it is the only way I can watch it with an ad-blocker as Walmart+ subscribers don't get the ad-free plan automatically.).

That’s a factually wrong assumption about Comcast, who’s growing Sky with ITV’s linear networks in the UK.

If Comcast want to expand Peacock with Lionsgate, Starz, & AMC Networks, it makes actual sense and they’re free to do so because these are bite-size purchases that they can easily digest with their $9B cash proceeds.

Anyway, let’s say the AI stock bubble’s popping does happen during the middle of the WarnerDiscovery pursuit (Oracle stock is used as loan collateral).

Zaslav gets a $7B check to pay down debt and could continue HBO Max’s international expansion without any more Ellison interference and Discovery+ would just be integrated into it.

It never needed Paramount+ at all while Skydance folded BET+ into Paramount+ because they’re way behind in growing the subscriber base.

This is why Paramount+’s international expansion has to continue, regardless of Ellison’s WarnerDiscovery obsession.

 

[PF9]

That’s a factually wrong assumption about Comcast, who’s growing Sky with ITV’s linear networks in the UK.

Well it's correct as far as the American operations of Comcast are concerned. The only cable networks still under Comcast in the USA are Bravo, Universo, and the NBC Sports Regional Networks (although the latter ones are on thin ice due to the downfall of RSNs).

With the merger of HBOmax and Paramount+, I could see a lot of the purged family-friendly content from the former returning to the combined service.

As well, the service could play host to new restored versions of Paramount cartoons (Fleischer and Famous) that Paramount still owns (with those released before October 1950 being part of the Melange Pictures library). It would be similar to how HBOmax premiered new restorations of previously-unrestored WB cartoons. Any new restorations of Famous Studios cartoons owned by DreamWorks Classics would be hosted on Peacock (while Paramount still owns the original negatives of those cartoons as well as theatrical distribution rights, NBCUniversal has access to those negatives if they wanted to make new prints of those cartoons - theoretically, that means Universal and Paramount could co-operate if the former wants to restore the Famous cartoons they own in their original release forms, much like how Paramount and WB did the same for restored Popeye and Superman cartoons).

 

[lowell]

Well it's correct as far as the American operations of Comcast are concerned. The only cable networks still under Comcast in the USA are Bravo, Universo, and the NBC Sports Regional Networks (although the latter ones are on thin ice due to the downfall of RSNs).

I still wouldn’t go that far to make any detailed assumption at this point when Comcast wants to pursue ITV channels to help Sky and could still scoop up Lionsgate, Starz, and AMC Networks to bolster up NBCUniversal and Peacock.

One person could say you’re correct and Comcast comes out with the contrary.

We saw them end NBC Sports Network and then revived just 4 years later.

It’s the same thing with your assumptions on Skydance’s WarnerDiscovery pursuit, there’s no need to jump to immediate conclusions when we can just wait and see where that falls.

 

[awinger24]

How could this affect WB’s home entertainment divisions, animation divisions, and licensing deals? One of my friends online is very concerned about Warner Archive shutting down if it’s not valuable. It’s part of the $6 billion in promised synergies and cuts that could downsize and consolidate Para Bros. Could WB Animation also shut down and fold into Nickelodeon since SpongeBob and Paw Patrol are all that matter to David Ellison?

The worst case scenario is firing George Feltenstein, Michael De Luca and Pam Abdy who already rejuvenated Warner Bros. after a turbulent period.

 

[Moe]

How could this affect WB’s home entertainment divisions, animation divisions, and licensing deals? One of my friends online is very concerned about Warner Archive shutting down if it’s not valuable. It’s part of the $6 billion in promised synergies and cuts that could downsize and consolidate Para Bros. Could WB Animation also shut down and fold into Nickelodeon since SpongeBob and Paw Patrol are all that matter to David Ellison?

The worst case scenario is firing George Feltenstein, Michael De Luca and Pam Abdy who already rejuvenated Warner Bros. after a turbulent period.

That is casualty of merger and if you are truly concerned, so you should talk with lawyer to file the lawsuit to stop the merger.

The M&A laws in the US allow customers to sue the company who is buying other company.

Talk in here isn't going to help with your case because we have NO WAY to know about what post-merger looks like and Ellison cannot be trusted.

 

[lowell]

Talk in here isn't going to help with your case because we have NO WAY to know about what post-merger looks like and Ellison cannot be trusted.

Yup, the only signs we have is from David Ellison's and his Skydance lieutenants's management of Paramount Global so far and it's a step down from Bakish and other Redstone-era experienced veteran executives.

The Redstones, before they got involved at David's incentivized demands, normally don't interfere with things they don't have expertise in but the Ellisons and Redbird seems to have their hands in every department they want in the company, even if they don't know much about it.

Even though they're out of the running, Netflix's Greg Peters calls their must-have pursuit as being desperate for what it is and also thinks that the newly-incurred debt would be on shaky ground (not to mention the Middle East money and Oracle stock being the loan collateral):

"My lunch with Peters comes in the aftermath of a high-octane corporate takeover saga. Last December, Netflix agreed an $83 billion (£63 billion) deal to buy Warner Bros Discovery’s studios and the HBO Max streaming service, but not its old cable TV business; in February, Paramount Skydance, funded by tech billionaire Larry Ellison and run by his son, David, agreed to buy the whole of Warner Bros Discovery for $111 billion — much of it paid for with debt.

Peters, Sarandos and co reckoned their valuation was correct, and so they pulled out of the bidding. “We had like a five-minute conversation — it was that easy,” Peters says. “If we can’t make the numbers make sense, I don’t get it.”

I ask him why he thinks the Ellisons were willing to pay more. “I think they put themselves in the position of having to have the deal,” he says disapprovingly. His theory is that Paramount had already spent big on TV rights and needed new streaming services and broadcasting infrastructure to manage them. For instance, it spent a reported £1 billion on rights for the European Champions League, and Peters reckons the company needed HBO Max and its sister TNT Sports to use them properly.

Peters now fears for Hollywood. “When you’re carrying that much debt, you have that much cost, you’re overpaying for assets … I think there’s some significant cost-cutting that’s coming, and I think a lot of folks are gonna get wrapped up in it.”

He predicts that the Ellisons will have to raise new money from investors. He also suggests that Netflix might be able to help its rival “make the math work” by acquiring the rights of certain Paramount and Warner Bros shows.

The alternative theory is that the Ellisons were right, and that they will use their billions to make HBO Max (latest subscriber count: 132 million) bigger than Netflix (325 million). “I’m sceptical there’s any chance they can catch up to our scale,” says Peters coolly. “Quite frankly, for them to do that means we have to be sitting on our duffs and not moving. We should not be doing that. And if we are, I should be fired.”"

Link: Greg Peters, the introvert boy coder who brings you Netflix hits

Anyone believing David Ellison will do a better job than Jeff Bewkes, John Stankey, or David Zaslav should re-examine his lack of experience running a big major company.

Skydance kept incurring losses right up until the Redstone sale was done and Larry had to financally bailout his kids whenever it was required from time to time.

 

[Pooky]

One of my friends online is very concerned about Warner Archive shutting down if it’s not valuable. It’s part of the $6 billion in promised synergies and cuts that could downsize and consolidate Para Bros.

This might be a little controversial but to be honest I think it's has a slightly better chance of surviving under Paramount then it would under Netflix. Netflix have shown time and time again that they're just not interested in the physical market (and in some ways are actively against it) nor do they seem to see entertainment from before 1990 or so as viable. This is partly a symptom of them being a tech company; Paramount at least have a similar history in film and entertainment to Warners

That said, I think it's sadly pretty likely in the cross-hairs of any potential merger.