EU to review Netflix, Paramount bids for Warner Bros: sources

EU regulators are preparing to review competing bids for Warner Bros. Discovery simultaneously, involving Netflix and Paramount Skydance, according to sources familiar with the matter.

The parallel investigations are driven by the timing of the offers and prior consultations with EU authorities.

A dual review could influence the outcome, with faster clearance for one bidder or increased scrutiny for the other, potentially shaping the eventual sale.

Netflix has amended its offer to buy Warner Bros.’ streaming and studio businesses for US$27.8 per share in cash, after previously proposing a mix of cash and stock.

Warner plans to spin off its cable networks in a separate transaction. Paramount Skydance has offered US$30 per share in cash for all of the Warner Bros. division.

The EU review, typically lasting about a month but extendable, could impact the broader global regulatory process in the US, UK, and Asia.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Key metrics must be clarified to gauge antitrust risk

Antitrust risk for a Netflix-Warner deal in Europe is shaped by how Netflix’s market power is defined.
To gauge that risk, Netflix’s market share in each of the EU’s 27 member states would need to be reviewed, plus the effect of a combined business on rivalry in each country 1.
The European Commission’s definition of the “relevant market”, the set of services treated as direct competitors, would need to be set.
Across nine EU countries, about 85% of subscription video-on-demand (SVOD) viewing time from September 2022 to September 2023 was captured by three U.S. platforms, Netflix, Prime Video, and Disney+, which signals heavy concentration 2.
It remains uncertain whether the market will be framed as streaming only or as the wider pay-audiovisual space, where European telecom operators still distribute pay TV plus bundled video services at scale 1.

Potential EU remedies could reshape content access for local players

European media operators plus investors could see room for smaller European video services if the European Commission demands concessions.
If Brussels requires remedies for approval, Netflix may need to commit to changes in how Warner content is licensed and distributed in some territories.
Local streamers or telecom companies could secure Warner programming in markets where U.S.-backed firms have steadily gained share 1.
European works are described as under-consumed compared with U.S. services, so required access to in-demand Warner titles could help local players refresh catalogs and draw viewers 2.