Yesterday, the news broke that Netflix will not match Paramount Skydance's offer for Warner Bros. Discovery, leaving the Ellison family-owned studio to acquire the company's film, television, and cable network assets.
According to Bloomberg, Paramount intends to keep much of the company intact, with chief executive officer and controlling shareholder, David Ellison, set to keep the creative teams of both Warner Bros. Pictures and HBO in place. That likely bodes well for DC Studios co-CEOs James Gunn and Peter Safran.
The biggest change would be a consolidation of marketing and distribution teams.
Interestingly, Ellison plans to merge HBO Max into the existing Paramount+ streaming platform. So, HBO Max will be no more, creating one service featuring the libraries of both companies to "make Paramount+ more compelling for subscribers."
The report also reveals that Ellison will leverage artificial intelligence to produce more movies and TV shows and intends to release 30 films a year from the combined companies. He's a big supporter of the theatrical experience. However, there are still some concerns about David and his billionaire father, Larry, and their close ties to President Donald Trump (as Paramount will soon own CBS News and CNN).
Interestingly, Netflix CEO Ted Sarandos visited the White House yesterday to discuss the merger. Shortly after, Warner Bros. Discovery issued a statement saying Paramount's bid "constitutes a 'Company Superior Proposal," only for Netflix to immediately pull out rather than attempt to match it.
Many believe that Sarandos got bad news from the Trump administration, as the President was always expected to back Paramount and didn't seem to appreciate Netflix's refusal to fire one of its board members who spoke out against him.
Warner Bros Discovery Chairman David Zaslav, meanwhile, has had quite the change of tune. "Netflix is a great company and throughout this process Ted, Greg, Spence and everyone there have been extraordinary partners to us. We wish them well in the future," he said in a statement.
"Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together, telling the stories that move the world."
Zaslav's stint in charge of Warner Bros. Discovery has been hugely controversial. Whether it's scrapping near-completed movies as tax write-offs or the belief he's looking to line his pockets rather than do what's best for the studio with this merger, he's not exactly a popular figure in Hollywood.
As for what the likely merger of Paramount Skydance and Warner Bros. Discovery means for the average Joe...well, that's very much TBD.