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Greetings!

The game is on as Netflix, Paramount and Comcast have submitted their bids for Warner Bros. Discovery. 

While we're still waiting for details like the bid amounts to shake out, here's what we do know:

• This is just the first round and the bids are non-binding.
• Netflix and Comcast are only interested in the studio and streaming business. 
• Netflix has reportedly said it would keep Warner Bros.' theatrical commitments, preemptively assuaging nervous theater owners
• Paramount had previously submitted three bids, with the highest at $23.50
• WBD CEO David Zaslav is reportedly looking for an offer that starts with a 3, as in $30 or more, a target also set by Bank of America analyst Jessica Reif Ehrlich
• We may need to be patient to see how this plays out: WBD said it hopes to have an update on its strategic review by the middle or end of December (not-so-happy holidays, everyone!)

To review, Paramount is looking to purchase all of WBD as it cobbles together the next-generation media giant. HBO Max would boost the scale of its own second-tier Paramount+ streaming service, creating a "super platform," in addition to the treasure trove of IP it would gain. It's also the only one interested in the legacy cable channels that would've spun out into Discovery Global, which would compliment its own cable channels. The company has had talks with three Arab sovereign wealth funds, including Saudi Arabia's PIF, about participating in the bid.  

Netflix is largely interested in WBD's valuable IP, and would probably scrap HBO Max as a streaming service. But it would face regulatory scrutiny, with lawmakers already expressing concern about its dominance in streaming and entertainment. Interestingly, a deal would thrust Netflix into the theatrical business in a much bigger way, something it has been reluctant to do in the past. 

Comcast could use HBO Max to scale up its own second-tier service, Peacock, the only streamer that's still losing money and has also hit a plateau in subscriber growth. WBD's IP, especially Harry Potter, would flourish at Universal's studio and at its theme parks, where it already has a successful partnership. 

More details will inevitably trickle out, so stay tuned. 

Roger Cheng
Managing Editor of Business and PRO
roger.cheng@thewrap.com

WBD BIDS ARE IN

Where Warner Bros. Discovery goes with the bids remains unclear, with the amounts of the offers dictating where things go next... 

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