Paramount Is Going Hostile With New Bid For Warner Bros. Discovery

Paramount Skydance is launching a hostile bid to buy Warner Bros. Discovery after it lost out to Netflix in a months-long bidding war for the legacy assets, the company said Monday.

Paramount will go straight to WBD shareholders with an all-cash, $30-per-share offer. That's the same bid WBD rejected last week, which Paramount Skydance CEO David Ellison said Monday never got a response from Warner Bros. Discovery. The offer is backstopped with equity financing from the Ellison family and the private-equity firm RedBird Capital as well as $54 billion in debt commitments from Bank of America, Citi and Apollo Global Management.

"We're really here to finish what we started," Ellison told CNBC's "Squawk on the Street" Monday. "We put the company in play."

Shares of Paramount were roughly 5% higher in premarket trading Monday. Shares of Warner Bros. Discovery were up about 6%. Shares of Netflix were slightly lower.

On Friday, Netflix announced a deal to acquire WBD's studio and streaming assets for $72 billion. Paramount had been bidding for the entirety of Warner Bros. Discovery, including those assets and the company's TV networks like CNN and TNT Sports.

Comcast also bid for the streaming and studio businesses, CNBC previously reported.

Paramount has repeatedly argued to the WBD board of directors that keeping Warner Bros. Discovery whole was in the best interest of its shareholders.

Paramount executives also plan to argue their deal will have a much shorter regulatory approval process given the company's smaller size and friendly relationship with the Trump administration, according to people familiar with the matter.

"We've had great conversations with the President about this, but I don't want to speak for him," Ellison said Monday.

Netflix's proposed acquisition has already raised antitrust questions, in particular for combining two of the most dominant streaming platforms. CNBC reported Friday that the Trump administration was viewing the deal with "heavy skepticism," and President Donald Trump said Sunday the market share considerations could pose a "problem."

Netflix agreed to pay Warner Bros. Discovery $5.8 billion if the deal is not approved, according to a Securities and Exchange Commission filing Friday. Warner Bros. Discovery said it would pay a $2.8 billion breakup fee if it decides to call off the deal to pursue a different merger.

More Bad News Might Be Awaiting DStv Consumers As MultiChoice And Warner Bros. Discovery Square Off

According to some new reports, DStv subscribers may have to brace for more bad news aside from Paramount closing MTV Base and 3 other channels. The fight is on in trying to retain Cartoon Network and TNT as well as The White Lotus on M-Net.

Warner Bros. Discovery and MultiChoice had this carriage dispute for sometime regarding the future of these networks and it's content on M-Net. As reported, Netflix had won the bid to acquire the portion that licenses to M-Net.

MultiChoice under its new owners Canal+ seemingly implied that rates to renew such agreement is higher. And as I've mentioned for a while now things about to get messy from insider's reports that things aren't looking good.

It could imply two scenarios

The first DStv consumers will lose all 12 channels meaning no more reruns of Regular Show on Cartoon Network and Holiday Baking Championship on Food Network. Superman, Green Lantern and Harry Potter on M-Net Movies those are gone as well.

From 2026, MultiChoice will lose DStv consumers at an alarmingly rate as seen in Kenya where it lost 85% of its audience. While they promise to replace the affected channels, none of the content from these brands would form part of the lineup anyways.

MultiChoice will find it hard trying to convince consumers across the DStv bouquet to retain their subscription. Even with replacements, there would be no Sister Wives or AEW Dynamite which is what the paying consumer subscribed for.

Various outlets are putting most of their bet on the first scenario and if you've seen what happened in the week was Netflix's possible acquisition of Warner Bros. Lots of websites placed their bid on Paramount winning as the deal would have included the cable networks.

But I'm putting my cards out for the second scenario where MultiChoice and Warner Bros. Discovery are able to finalise an agreement - eventually.

"Things Aren't Looking Good" could imply instead of 12 additional channels joining the 4 existing channels from Paramount to exit DStv. It could as well be between 4-7 channels and I've stated this before MultiChoice doesn't need all these channels.

Travel Channel had been in decline that even MultiChoice Africa no longer offer it to DStv consumers. HGTV similar to BBC Earth wasn't even licensed to consumers in some African markets making it a strong contender to get the axe.

Under previous management, MultiChoice was prioritising on content which led to the exit of a couple of popular brands like Animal Planet and BBC First. Maybe under French hands, they could look to keep channels with massive appeal and remove ones deemed expensive or redundant.

Popular brands within their stable include Discovery, TLC, Cartoon Network and TNT, with expensive or low rated brands like HGTV, Food Network and Discovery Family.

If theres one thing I believe would be a priority is the part that deals with M-Net and Showmax as a loss would lead to viewer erosion. The part in which M-Net contract with has major IPs under their belt and is a contributor to M-Net's success.

The linear part doesn't even appear in South Africa's 20 most watched channels making the content part a liability. 

The second scenario seems probable although they would lose subscribers it wouldn't be severe if this number went up to 16 channels. MultiChoice can do without some of these brands as it would give them time to calm the masses and seek alternatives.

New Channel Alert: 1KZN TV And Mpuma Kapa TV Are Now Streaming On SABC+

Following the inclusion of SuperSport Schools, SABC+ has added the provincial stations 1KZN TV and Mpuma Kapa TV in an attempt to boost primetime on the platform. As the struggling SABC 2 and SABC 3 start to see a drop in viewership.

Based in Richards Bay, 1KZN TV promotes cultural preservation and community development, making it a key voice for regional narratives. It focuses on the KwaZulu-Natal (KZN) province in South Africa, with a strong emphasis on Zulu culture, history, and local stories.

It produces original programming through community engagement, including news, entertainment, youth culture shows, and sports coverage like the DStv Diski Challenge and KZN Sport.

Mpuma Kapa TV (often abbreviated as MPK TV or formerly known as Bay TV) is the Eastern Cape's premier regional broadcaster, serving as a "window to the province" by showcasing local culture, community developments, entertainment, and economic stories.

It features multi-genre content, including religious programs like Shekinah Healing Ministries, talk shows such as Book Review and Street Talk TV, event coverage around Nelson Mandela Bay, and motivational segments.

Aside from SABC+, 1KZN TV and Mpuma Kapa TV are also streaming on Freevision Play and through cable on DStv. 

How Netflix's Potential Acquisition Of Warner Bros. Discovery Affects M-Net, DStv And Showmax?

Not long ago, it was reported that Netflix won the bid to acquire Warner Bros. Discovery valuing the deal at $72 billion. This deal would DC Entertainment/Studios, Cartoon Network Studios, HBO, Warner Bros. Pictures/Television and New Line Cinema.

Below is a how this deal is bad news for MultiChoice

M-Net and Showmax

MultiChoice had been licensing Game Of Thrones and Penguins from HBO to M-Net and Showmax. In the event of an acquisition, Netflix had expressed interest to continue these partnerships with local broadcasters but it may not be easy.

If MultiChoice continues to license content from Warner Bros. they could as well look to increase the rates. This is something MultiChoice's new owners Canal+ may not find amusing as they've begun cost cutting due to DStv's shrinking consumer base.

Besides that, the previous owners at MultiChoice had been anti-Netflix for sometime so the general audience had sort of painted a certain image of the company. While free-to-air broadcasters such as SABC and eMedia Investments had been licensing from the streamer.

MultiChoice put up a wall between them and Netflix again this was the previous owners regime as Canal+ does view them as partners. They do have an agreement to bundle their services in francophone markets alongside a content deal through K+.

The reality is while Warner Bros. continues to license content to M-Net and Showmax, Netflix will likely make further productions exclusive to their services. If they do continue licensing, I doubt MultiChoice would want their scraps.

Netflix is already available in the market which further complicates things as M-Net and Showmax are meant to go hand in hand with their content. But then again, MultiChoice is part of StudioCanal's parent company which gives them leverage.

Netflix may offer Stranger Things, Squid Games and Wednesday but with Canal+'s MultiChoice there's Paris Has Fallen, Spinners and iShaka iLembe.

DStv

For this part, I feel there's a lot of exaggeration as Netflix is not acquiring Discovery, TLC or the linear Cartoon Network as that is being spun off into a separate company. Of course, Netflix's bid to be frank sort of dilutes the value of Cartoon Network.

Cartoon Network under Discovery Global will be leaning more toward third party programming such as Lego Ninjago, Dragonball Super and Totally Spies!. While what made Cartoon Network, Nickelodeon and Disney "The Big 3" like Regular Show and Tiny Toons Looniversity goes to Netflix.

It's likely that they will be a licensing agreement for these shows but they'll most definitely be like DreamWorks Channel - reruns. Under a separate company, they're not going to prioritise on these Netflix originals.

If it is deemed expensive these shows could as well get phased out and again that just dilutes Cartoon Network who had been reliant on these IPs.

Turning over the torch to Discovery Global, this is the company that MultiChoice is involved in a carriage dispute with over the future of its 12 channels. These include Discovery Channel, HGTV, TLC and as mentioned the linear Cartoon Network.

Of course, the matter of concern here to me is that as mentioned with Cartoon Network while the Netflix deal makes the company more leaner. There's still another 20 billion worth of debt they need to clean out.

Expecting for content to be reduced, potential sales or closures to operations or channels and lastly massive layoffs particularly for international feeds.

All of this might as well unfold while these channels are no longer on DStv but then again it's likely that MultiChoice could opt to keep a few channels. My guess would be Discovery Channel, TLC, Cartoon Network, Real Time, Cartoonito, ID and CNN.

MultiChoice Is In Trouble As M-Net And Showmax Are Also At Risk Of Losing Content From HBO, TLC And Cartoon Network

A few days ago, it was announced that Netflix had won the bid to acquire Warner Bros. Discovery (excluding it's cable networks). This comes after MultiChoice and the company made it transparent to viewers that their 12 TV channels on DStv could be going dark from next year.

These include Discovery Channel, TLC, Discovery Family, TNT, Real Time, Investigation Discovery, Food Network, HGTV, Travel Channel, Cartoon Network, Cartoonito and CNN. A petition had been going around following news of its possible demise.

According to sources, not only does this deal affect these cable networks but also their licensing deal with M-Net and Showmax for shows like House Of Dragons, The White Lotus and The Gilded Age.

MultiChoice had stated at the time that they were open to replacing these channels and if that's so none of the content from HBO or Warner's cable networks would form part of the lineup. Warner Bros. is one of MultiChoice's biggest clients.

Compared to Disney and Paramount that offer only 6 channels each, they offer a combined figure. Since Disney+ inception, content from the brand had been further reduced on M-Net, DStv and Showmax but that wasn't the case for Warner Bros. Discovery.

For MultiChoice and it's owner Canal+, there is a lot in stake for them should they opt to have these channels removed. In two years, they've lost over 2 million subscribers particularly in Kenya where it lost 85% of its subscribers and this will just accelerate.

Paramount already plans to close CBS Reality, CBS Justice, BET and MTV Base, and although the consumer numbers are expected to decline. It will be more severe as seen in Kenya should consumers miss out on 90 Day Fiance and Craig Of The Creek.