Media Rival Challenges Netflix Purchase Of AEW Partner Warner Bros. With Hostile Bid

Wrestling fans and film aficionados are waiting with bated breath to find out the future of Warner Bros., one of the longest-running movie studios still operating. WBD, the parent company of Warner Bros, came to an agreement with Netflix to sell the film, TV studio, and the HBO Max platform to the streaming giant, leaving WBD free to find buyers for the other parts of its business, like the Turner Networks, home to All Elite Wrestling programming. However, Paramount has not given up its hopes of purchasing WBD in its entirety.

According to the Associated Press, Paramount is bringing an offer of approximately $74.4 billion, or roughly $30 per share, to WBD shareholders directly, attempting a hostile takeover of WBD in total. The offer is roughly $18 billion more than Netflix's current offer. Warner management had rejected a similar offer from Paramount in favor of the Netflix offer. A representative for Paramount said the Netflix deal would expose WBD shareholders to "a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash."

The threat of a hostile takeover puts the future of Turner Networks back into disarray, as the initial Netflix deal would've allowed WBD management to seek offers on the television networks. The situation puts AEW in the crossfire between the various parties, as Netflix currently has a broadcasting deal with WWE, while Paramount has a relationship with WWE's sibling company UFC. While neither company has indicated that AEW programming would be affected, the anxieties are a symptom of the dwindling media market. AEW's new media rights deal with WBD has "AEW Dynamite" and "Collision" on Turner Networks for the next several years, though it is not known if there is any kind of clause about potential sales. Netflix reportedly plans to keep HBO Max, which just became a streaming platform for AEW PPVs, as is, though it is speculated that it will change.