Opponents of Netflix’s $83B bid for Warner Bros. Discovery $WBD ( ▲ 0.32% ) are taking the fight overseas, pushing European regulators to scrutinize the deal as the battle over Warner’s crown jewel content like “Friends” escalates.
Europe becomes the new battleground
After struggling to gain traction in the US, deal opponents are now going on offense in Europe. Paramount Skydance CEO David Ellison met with European film industry leaders and French President Emmanuel Macron in Paris, while Paramount execs also visited the UK and Germany to lobby regulators.
At the same time, trade groups representing AMC $AMC ( ▲ 0.63% ) and other theater operators with European exposure are also urging EU regulators to intervene.
Netflix is quietly stacking wins in the US
While the lobbying campaign ramps up overseas, Netflix keeps picking up incremental legal and perception wins at home. A Delaware judge dismissed Paramount’s request to fast-track its lawsuit against Warner Bros., and Netflix is reportedly considering strengthening its offer by making it all-cash.
Theaters may be less hostile than feared
Theater chains have been worried Netflix would shrink the traditional box office window, but Netflix co-CEO Ted Sarandos tried to calm fears, saying Warner’s film business would keep operating largely as-is, including 45-day theatrical windows. That helped spark gains in AMC $AMC ( ▲ 0.63% ) and IMAX $IMAX ( ▲ 3.11% ) .
Prediction markets shifting toward Netflix
Event contract odds have swung toward Netflix winning control of Warner Bros., with Paramount’s chances dropping to 19% Friday from 31% Thursday.