Danni Hewson, head of financial analysis at AJ Bell, said: “It was never going to be as simple as a handshake, so it felt rather presumptuous to receive an email from Netflix over the weekend telling subscribers all about the beloved franchises coming together – ‘Nothing is changing today’, it said.
“Now it seems there’s a chance nothing might change at all if Donald Trump’s pal and boss of Paramount Skydance, David Ellison, has his way.
“Paramount Skydance has taken its hostile offer, which is for the whole Warner Bros Discovery business, straight to shareholders, hoping dollar signs and the expectation of a smoother path with regulators will sway things in their direction.
“Having Donald Trump’s son-in-law, Jared Kushner, on board helps to sow those seeds and shares of Warner Bros had risen significantly yesterday as investors began to detect the sweet smell of a potential bidding war.
“By contrast Netflix’s shares sank further, which could suggest investors are worried the streamer may lose out or be forced to pay over the odds for its prize, or that they feel they may have dodged a regulatory and practical nightmare.
“Certainly, many in Hollywood were concerned about the influence Netflix would have over the industry which could have made for difficult working relationships going forward.
“There’s also a rather chill wind blowing from the White House that could have made the next year and a half very difficult to navigate for the streaming giant.
“What’s not clear is which way Warner Bros Discovery shareholders will jump.
“Shares in the business rose yesterday but that’s likely to have more to do with the immediate reaction to the sweetened pot than a thoughtful consideration of what’s on the table.”
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