While rushing into another merger was likely not on anyone’s Bingo card for this year, it looks like there could be a deal shaping for Warner Bros from the now David Ellison-run Paramount. With full details, we have our entertainment lawyer at Blake & Wang P.A., Brandon Blake.
A Fantastic Year for Warner Bros
If Warner Bros did want to shelve its looming split between its legacy and streaming assets and pursue a deal for the whole company, it’s certainly in a fantastic place for it. They were officially the first studio to cross the $4B mark at the box office this year, with a string of successes across both tentpoles and smaller releases. Much of this success has been laid at the door of the Warner Bros. Motion Picture chairs, Michael De Luca and Pam Abdy- and we have recently seen their contracts formally renewed, which would be a drawcard for a buyer.
No Formal Offer Yet
However, despite the bevy of rumors around a potential purchase, no formal offers have yet been made, and we do know that informal discussions have taken place. Naturally, all parties would be keen to avoid the prolonged, painful regulatory processes that marred the Skydance merger. Warner Bros. is also currently very debt-heavy, which may be an issue.
There is also the issue of what this would mean for the current Warner Bros. leader, David Zaslav, who is unlikely to make the transition into a merged entity, should it occur. The Ellisons are more likely to want a new broom to sweep clean if they take control. As Zaslav has himself been very prominent as Warner Bros. head, this may cause further conflict.
For now, we have no formal word on if, let alone when, we may hear a formal bid from Paramount. However, it does seem increasingly likely that we will see a formal bid for the full company in the future, and whether Warner Bros. will ever make it to the planned legacy/streaming split is looking less certain than it did a few months ago.
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