For several months, it seemed like there was nothing that would stop Paramount becoming the next owner of Warner Bros. Pictures, with the studio even having President Trump reportedly in their corner. Now, 
Netflixhas come up on the rails and will enter exclusive talks to complete an industry-changing deal to buy the iconic studio – and all the huge IPs that come with it, such as Harry Potter, Lord of the Rings, and the DCU.
After a long and testing process (per The Wrap), a final round of bids by Paramount, Netflix and Comcast has seen Ted Sarandos’ streamer enter the final stages of a purchase after reportedly offering $30 a share for the legendary studio and its streaming assets such as HBO Max, along with a $5 billion break-up fee to counter the same offer made by Paramount. Now, the world waits to find out whether the final terms are agreeable to both sides, and if the whole merger will make it through legal red tape.
There has been a lot of interest in the sale of Warner Bros., mainly from those in the industry who are worried that a take-over by Netflix would continue to compound the issues being faced by cinemas as more movies take direct-to-streaming routes. This has been a particular bone of contention already with Netflix, which has only been showing their new movies in cinemas in limited runs to allow them to compete at various awards ceremonies such as the Oscars. Recently, Netflix were forced to give in to requests by Greta Gerwig for her Narnia movie to get a huge IMAX release before the film hits streaming, something unprecedented compared to the two-week limited theater engagements that other movies have received. The worry is that if Netflix get their hands on Warner Bros. more movies could end up dodging cinemas.
Will Netflix Be Allowed to Buy Warner Bros.?
This is now the biggest question. It seems that there is not much that can derail the actual talks between the two companies, but the deal then has to get through the U.S. Department of Justice, which is reportedly opposed to the merger and would put the deal through some tough antitrust scrutiny.
Previous reports have said that there is a concern that the merger would “harm consumers and Hollywood alike,” which would “diminish incentives to produce new content and major theatrical releases. However, other reports have suggested that one of the stipulations made by Warner Bros. was that if Netflix bought the company, they would be obliged to continue to release Warner Bros. movies in cinemas.
Obviously, the sale of Warner Bros. comes shortly after Paramount’s purchase of Skydance, which itself had to jump through many hurdles. The idea of Netflix, a company infamous for its stance of streaming before cinema, buying one of the biggest Hollywood studios with a long history of making movies to be seen on the big screen is one that has many people outraged. In the end, though, money talks, and clearly, so far, it has been speaking very loudly on behalf of Netflix in the bidding process. Now it is yet to be seen if it can shout even louder to pass the final hurdle.