Paramount's Bold Move: Why They Think They're the Best Fit for Warner Bros.

Paramount is not satisfied with how Warner Bros Discovery (WBD) is handling a potential sale. They believe that if Netflix or Comcast win the bid, it won't be smooth sailing. Paramount thinks they are the only ones with a clear shot at buying WBD because they have a strong legal background to back them up.

Legal and Regulatory Issues

In a letter to WBD, Paramount's lawyers stated that both Netflix and Comcast have significant problems that regulators can't ignore. This letter was sent with their latest offer. They also sent another letter claiming that WBD's sale process isn't fair.

If WBD picks someone other than Paramount, there might be a court battle or even a hostile takeover, according to industry insiders.

Focus on Netflix

Paramount is particularly focused on Netflix. They argue that a deal with Netflix is unlikely to succeed because Netflix is already a streaming giant, and adding HBO Max would make them even bigger. This could cause serious issues with regulators.

Paramount also believes that a Netflix-Warner Bros deal would mean fewer movies in theaters, which would hurt theaters that are already struggling. While Netflix has said they would keep WBD's theater deals, Paramount doesn't think that's a good enough solution.

Paramount as the Safest Choice

Paramount believes they are the easiest and safest choice for WBD. They argue that a deal with them wouldn't raise any red flags with regulators because their combined market share isn't too high. They also think that a Paramount-Warner Bros deal would create a stronger competitor against Netflix and more opportunities for creators.

Current Bidding Situation

WBD has asked for a third round of bids, but some people think the situation is uncertain. WBD wanted to settle on a buyer by the end of the year. Paramount wants to buy all of Warner Bros, including their global networks. Netflix and Comcast are also in the running, but they're only interested in the studios and HBO Max streaming service.

Comcast's Antitrust Concerns

As for Comcast, Paramount said that their presence in broadband and cable also raises antitrust concerns. They think that the tough regulatory path Comcast faced when it acquired NBC Universal won't be available under the current administration.